The study, titled Investment Principles in Management and Utilization of Indonesia's Deepest and Outermost Islands, uses a normative research method, which is research that is essentially carried out by researching, exploring and examining various laws and regulations relating to the issues to be examined. The conclusions generated in this study are First, the Granting of Coastal Aquatic Business Rights (HP-3) reduces the State's Right to Control over Management of Coastal Areas and Small Islands so that the provisions regarding HP-3 by the Constitutional Court of the Republic of Indonesia through Decision Number 3 / PUU- VIII / 2010 is declared contrary to the 1945 Constitution of the Republic of Indonesia and has no binding legal force. Management of the Coastal Areas and Small Islands has so far not provided adequate authority and responsibility of the State for the management of the Coastal Waters and small islands through the mechanism of granting the Coastal Waters Concession Rights (HP-3). Existing regulations do not contain spirits or in other words do not reflect / reflect the mandate contained in Article 33 of the 1945 Republic of Indonesia State Constitution. Both the Principle of Investment of the innermost and outermost islands for domestic and foreign investors as a form of government neglect of local community participation.