Investment Incentives in Environmental Projects in Indonesia: An Analysis of Legal Potentials & Challenges

Authors

  • Richard Harris Universitas Internasional Batam, Indonesia
  • Rina Shahriyani Shahrullah Universitas Internasional Batam, Indonesia
  • Nurlaily Nurlaily Universitas Internasional Batam, Indonesia

DOI:

https://doi.org/10.37253/jjr.v26i1.9150

Keywords:

Environmental Projects, Environmental Sustainability, Investment Incentives, SDGs

Abstract

Environmental sustainability is an issue that needs serious support, not just from within the exclusive realm of legal environmental protection, but also investment law, which fosters better partnership between the government, local communities, and the private sector. In an effort to promote sustainability, Indonesia can’t solely rely on the prevention of environmental degradation, but also has to constantly seek for ways to navigate around climate change concerns, and strive for innovations that can solve environmental problems, particularly through environmental projects. This research aims to analyze the potential of investment incentives in promoting investments in environmental projects in Indonesia. By using normative legal research method and statutory approach, analysis of this research finds that there is a lack of environmental constitutional will, manifested within the Investment Law, along with the lack of nation-wide regulation support to provide incentives for environmental projects. Analysis of this study suggests that the revision of the Investment Law can help fill the normative gap, along with streamlining nation-wide efforts in realizing Sustainable Development Goals.

Downloads

Download data is not yet available.

References

Ahmed, S., Alam, Z., & Afzal, M. K. (2015). Laws, Regulations, Formalities and Facilities/Incentives on Investment: A Case of Bangladesh. The USV Annals of Economics and Public Administration, 15(2(22)), 222–232.

Andreoni, V., & Miola, A. (2015). Climate change and supply-chain vulnerability. International Journal of Emergency Services, 4(1), 6–26. https://doi.org/10.1108/IJES-09-2014-0012

Archibugi, D., Filippetti, A., & Frenz, M. (2020). Investment in innovation for European recovery: A public policy priority. Science and Public Policy, 47(1), 92–102. https://doi.org/10.1093/scipol/scz049

Benuf, K., & Azhar, M. (2020). Metodologi Penelitian Hukum sebagai Instrumen Mengurai Permasalahan Hukum Kontemporer. Gema Keadilan, 7(1), 20–33. https://doi.org/doi.org/10.14710/gk.7.1.20-33

Bialek, S., & Weichenrieder, A. J. (2021). Do Stringent Environmental Policies Deter FDI? M&A versus Greenfield. Environmental and Resource Economics, 80(3), 603–636. https://doi.org/10.1007/s10640-021-00600-x

Chowdhury, M. M. I., Rahman, S. M., Abubakar, I. R., Aina, Y. A., Hasan, M. A., & Khondaker, A. N. (2021). A review of policies and initiatives for climate change mitigation and environmental sustainability in Bangladesh. Environment, Development and Sustainability, 23(2), 1133–1161. https://doi.org/10.1007/s10668-020-00627-y

Cima, E. (2022). The right to a healthy environment: Reconceptualizing human rights in the face of climate change. Review of European, Comparative and International Environmental Law, 31(1), 38–49. https://doi.org/10.1111/reel.12430

Civero, G., Rusciano, V., Scarpato, D., & Simeone, M. (2021). Food: Not Only Safety, but Also Sustainability. The Emerging Trend of New Social Consumers. Sustainability, 13(23), 1–15. https://doi.org/10.3390/su132312967

Dechezleprêtre, A., Martin, R., & Bassi, S. (2019). Climate change policy, innovation and growth. In Handbook on Green Growth (pp. 217–239). https://doi.org/10.4337/9781788110686.00018

Disemadi, H. S. (2022). Lenses of Legal Research: A Descriptive Essay on Legal Research Methodologies. Journal of Judicial Review, 24(2), 289–304. https://doi.org/10.37253/jjr.v24i2.7280

Eskiev, M., Akhmieva, R., & Jandarova, L. (2023). Carbon farming as a new climate change management tool in Russia. BIO Web of Conferences, 76, 1–8. https://doi.org/10.1051/bioconf/20237602003

Fischer, M., Foord, D., Frecè, J., Hillebrand, K., Kissling-Näf, I., Meili, R., Peskova, M., Risi, D., Schmidpeter, R., & Stucki, T. (2023). The Concept of Sustainable Development. In M. Fischer, D. Foord, J. Frecè, K. Hillebrand, I. Kissling-Näf, R. Meili, M. Peskova, D. Risi, R. Schmidpeter, & T. Stucki (Eds.), Sustainable Business: Managing the Challenges of the 21st Century (pp. 17–27). Springer International Publishing. https://doi.org/10.1007/978-3-031-25397-3_2

Gaur, A. S., Fitiwi, D. Z., & Curtis, J. (2021). Heat pumps and our low-carbon future: A comprehensive review. Energy Research & Social Science, 71, 1–18. https://doi.org/https://doi.org/10.1016/j.erss.2020.101764

Ha, H., & Dhakal, T. N. (2013). Governance Approaches to Mitigation of and Adaptation to Climate Change in Asia: An Introduction. In Governance Approaches to Mitigation of and Adaptation to Climate Change in Asia (pp. 1–10). https://doi.org/10.1057/9781137325211_1

Hales, R., & Birdthistle, N. (2022). The Sustainable Development Goals – SDG#13 Climate Action. In N. Birdthistle & R. Hales (Eds.), Attaining the 2030 Sustainable Development Goal of Climate Action (pp. 1–9). Emerald Publishing Limited. https://doi.org/10.1108/978-1-80382-693-620221001

Hartley, K. (2018). Environmental resilience and intergovernmental collaboration in the Pearl River Delta. International Journal of Water Resources Development, 34(4), 525–546. https://doi.org/10.1080/07900627.2017.1382334

Hutter, B. M. (2017). Chapter 1: Risk, resilience and inequality: current dilemmas in environmental regulation. In Risk, Resilience, Inequality and Environmental Law (pp. 3–26). Edward Elgar Publishing. https://doi.org/10.4337/9781785363801.00007

Hyde, C. (2022). Grubs up: Multiple enactments of insects as food in Aotearoa/New Zealand. New Zealand Sociology, 37(2), 94–106.

Kariuki, T., Omumbo, J., Ciugu, K., & Marincola, E. (2023). The interconnected global emergencies of climate change, food security and health: a call to action by the Science for Africa Foundation. Open Research Africa, 6(1), 1–19. https://doi.org/10.12688/openresafrica.13566.1

Kedhaton, A. S., & Arif, N. (2023). Distribution and Analysis of Responses to Extreme Weather Phenomena through Twitter. International Journal of Disaster Management, 6(2), 237–250. https://doi.org/10.24815/ijdm.v6i2.32251

Kolstad, E. W., Sofienlund, O. N., Kvamsås, H., Stiller-Reeve, M. A., Neby, S., Paasche, Ø., Pontoppidan, M., Sobolowski, S. P., Haarstad, H., Oseland, S. E., Omdahl, L., & Waage, S. (2019). Trials, Errors, and Improvements in Coproduction of Climate Services. Bulletin of the American Meteorological Society, 100(8), 1419–1428. https://doi.org/https://doi.org/10.1175/BAMS-D-18-0201.1

Kotzé, L. J., & Adelman, S. (2023). Environmental Law and the Unsustainability of Sustainable Development: A Tale of Disenchantment and of Hope. Law and Critique, 34(2), 227–248. https://doi.org/10.1007/s10978-022-09323-4

Kräussl, R., Oladiran, T., & Stefanova, D. (2024). A review on ESG investing: Investors’ expectations, beliefs and perceptions. Journal of Economic Surveys, 38(2), 476–502. https://doi.org/10.1111/joes.12599

Leichenko, R., & Silva, J. A. (2014). Climate change and poverty: Vulnerability, impacts, and alleviation strategies. Wiley Interdisciplinary Reviews: Climate Change, 5(4), 539–556. https://doi.org/10.1002/wcc.287

Muzaki, A., Pratiwi, R., & Az Zahro, S. R. (2021). Pengendalian Kebakaran Hutan melalui Penguatan Peran Polisi Kehutanan untuk Mewujudkan Sustainable Development Goals. LITRA: Jurnal Hukum Lingkungan, Tata Ruang, Dan Agraria, 1(1), 22–44. https://doi.org/10.23920/litra.v1i1.579

Olayide, O. E., Alabi, T. R., Oyedepo, J., & Okechukwu, R. (2024). Assessing rainfall and extreme weather variability for climate resilient agricultural production systems in Nigeria. Research Square, Preprint, 1–31. https://doi.org/10.21203/rs.3.rs-3808332/v1

Onoh, U. C., Ogunade, J., Owoeye, E., Awakessien, S., & Asomah, J. K. (2024). Impact of Climate Change on Biodiversity and Ecosystems Services. International Journal of Geography and Environmental Management (IJGEM), 10(1), 77–93. https://doi.org/10.56201/ijgem.v10.no1.2024.pg77.93

Paaske, D. M. (2021). Impact of Climate Change, Intergenerational Justice, and Human Rights on SDGs. In W. Leal Filho, A. Marisa Azul, L. Brandli, A. Lange Salvia, P. Gökçin Özuyar, & T. Wall (Eds.), Reduced Inequalities (pp. 473–481). Springer International Publishing. https://doi.org/10.1007/978-3-319-95882-8_109

Puja Pangestu, F., Shelvia Rahmadianti, N., Tanzila Hardiyanti, N., & Yusida, E. (2021). Ekonomi Pancasila Sebagai Pedoman Dalam Tujuan Pembangunan Berkelanjutan SDGs (Sustainable Development Goals) 2030. In Prosiding Seminar Nasional Ekonomi Pembangunan (Vol. 1, Issue 3).

Putra, M. D. R., & Disemadi, H. S. (2022). Counterfeit Culture dalam Perkembangan UMKM: Suatu Kajian Kekayaan Intelektual. KRTHA BHAYANGKARA, 16(2), 297–314. https://doi.org/10.31599/krtha.v16i2.1151

Race, D., Gentle, P., & Mathew, S. (2023). Living on the margins: Climate change impacts and adaptation by remote communities living in the Pacific Islands, the Himalaya and desert Australia. Climate Risk Management, 40, 1–7. https://doi.org/https://doi.org/10.1016/j.crm.2023.100503

Sakharina, I. K., Patittingi, F., Halim, H., Napang, M., Sumardi, J., Inggit, A. B., & Hendrapati, M. (2022). Sinking or not? An Indonesian Approach to Prevent the Rise of Sea Levels Due to Global Warming. In E. Y. J. Lee (Ed.), ASEAN International Law (pp. 649–665). Springer Nature Singapore. https://doi.org/10.1007/978-981-16-3195-5_36

Sarathchandra, D., & Haltinner, K. (2023). Climate Change Skeptics’ Environmental Concerns and Support for Clean Energy Policy: A Case Study of the US Pacific Northwest. In Climate (Vol. 11, Issue 11, pp. 1–13). https://doi.org/10.3390/cli11110221

Scholz, I. (2023). Reflecting on the Right to Development from the perspective of global environmental change and the 2030 Agenda for Sustainable Development. In »Entwicklung« als Paradigma (pp. 77–98). https://doi.org/10.1515/9783839462454-005

Shaffril, H. A. M., Krauss, S. E., & Samsuddin, S. F. (2018). A systematic review on Asian’s farmers’ adaptation practices towards climate change. Science of The Total Environment, 644, 683–695. https://doi.org/https://doi.org/10.1016/j.scitotenv.2018.06.349

Smita, & Chaudhuri, A. S. (2019). Impact-Assessment Motives of Eco2 Sustainable Cities. In V. R. Sharma & Chandrakanta (Eds.), Making Cities Resilient (pp. 227–234). Springer International Publishing. https://doi.org/10.1007/978-3-319-94932-1_16

Tan, D. (2021). Metode Penelitian Hukum: Mengupas dan Mengulas Metodologi Dalam Menyelenggarakan Penelitian Hukum. NUSANTARA: Jurnal Ilmu Pengetahuan Sosial, 8(8), 2463–2478. http://jurnal.um-tapsel.ac.id/index.php/nusantara/index

Trigkas, M., Andreopoulou, Z., Papadopoulos, I., & Kitsouli, A. (2016). Building an evaluation model for public funding towards SMEs for R&D and environmental oriented projects. International Journal of Globalisation and Small Business, 8(3), 207–238. https://doi.org/10.1504/IJGSB.2016.080376

von Rintelen, K., Arida, E., & Häuser, C. (2017). A review of biodiversity-related issues and challenges in megadiverse Indonesia and other Southeast Asian countries. Research Ideas and Outcomes, 3, 1–16. https://doi.org/10.3897/rio.3.e20860

Yakin, S. K. (2017). Analisis Mengenai Dampak Lingkungan (AMDAL) sebagai Instrumen Pencegahan Pencemaran dan Perusakan LIngkungan. Badamai Law Journal, 2(1), 113–132. https://doi.org/10.32801/damai.v2i1.3393

Zhan, J. X. (2021). GVC transformation and a new investment landscape in the 2020s: Driving forces, directions, and a forward-looking research and policy agenda. Journal of International Business Policy, 4(2), 206–220. https://doi.org/10.1057/s42214-020-00088-0

Zhang, K. Q., & Chen, H. H. (2017). Environmental performance and financing decisions impact on sustainable financial development of Chinese environmental protection enterprises. Sustainability (Switzerland), 9(12), 1–14. https://doi.org/10.3390/su9122260

Zvingule, L., Kalnins, S. N., Blumberga, D., Gusca, J., Bogdanova, M., & Muizniece, I. (2013). Improved Project Management via Advancement in Evaluation Methodology of Regional Cooperation Environmental Projects. Environmental and Climate Technologies, 11(2013), 57–67. https://doi.org/doi:10.2478/rtuect-2013-0008

Published

2024-04-29

Issue

Section

Articles