Institutionalizing Green Competition Parameters within Contemporary Indonesian Transnational Corporate Merger Control Doctrines
Article Sidebar
Main Article Content
Abstract
This study analyzes the disparity in environmental, social, and governance due diligence enforcement within transnational corporate restructurings between Indonesia and Singapore, evaluating its profound impact on foreign direct investment certainty. Utilizing a doctrinal legal methodology with comparative and conceptual approaches, this research systematically investigates the normative friction between mandatory frameworks in Singapore and fragmented regulations in Indonesia. The findings reveal that the corporate legal architecture of Indonesia, particularly the reduction of sustainability metrics to mere corporate philanthropy under the Company Law, alongside the complete absence of green antitrust parameters in merger controls, creates severe legal uncertainty. This regulatory vacuum directly exposes investors to greenwashing and hidden financial risks. Consequently, this article proposes a statutory reconstruction grounded directly in the Green Constitution paradigm. Transforming voluntary metrics into mandatory due diligence within corporate restructuring is an absolute necessity to protect all transnational investors, optimize investment climates, and ensure long term ecological sustainability.
Downloads
Article Details
Section
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
How to Cite
References
Absori, Absori, Sigit Sapto Nugroho, Anik Tri Haryani2, Sarjiyati Sarjiyati, Arief Budiono, Heru Santoso Wahito Nugroho, and Rangga Jayanuarto. “The Prospect of Environmental Law to Achieve Healthy Environmental Development in Indonesia.” Medico-Legal Update 20, no. 1 (January 27, 2020): 204–8. https://doi.org/10.37506/mlu.v20i1.356.
Arinanto, Satya, Dian Parluhutan, and Louise Sabela. “Compatibility Between the Indonesian Competition Law and Indonesia’s Climate Change Mitigation Policy Under The UNFCCC Paris Agreement 2016: Quo Vadis?” Indonesian Journal of International Law 22, no. 4 (June 27, 2025): 731–62. https://doi.org/10.17304/ijil.vol22.4.1846.
Blount, Justin Robert, and Michael Conklin. “Non-Human Stakeholders: Testing the Boundaries of Stakeholder Theory.” SSRN Electronic Journal, 2023. https://doi.org/10.2139/ssrn.4402429.
Falce, Valeria, and Nicola M. F. Faraone. “‘Killer Acquisitions’ or ‘Killing Innovation’: Antitrust Implications of the New Wave of Tech Acquisitions and the New European and Italian Regimes for Below-Threshold Mergers.” In Research Handbook on Competition and Corporate Law, 331–66. Edward Elgar Publishing, 2025. https://doi.org/10.4337/9781803920559.00029.
Feyisetan, Omotayo Olaleye, Fadi Alkaraan, and Chau Le. “The Influence of ESG on Mergers and Acquisitions Decisions and Organisational Performance in UK Firms: Comparison between Financial and Non-Financial Sectors.” Journal of Applied Accounting Research 26, no. 3 (May 6, 2025): 679–707. https://doi.org/10.1108/JAAR-09-2024-0340.
Grewal, Jody, and George Serafeim. “Research on Corporate Sustainability: Review and Directions for Future Research.” Foundations and Trends® in Accounting 14, no. 2 (September 2, 2020): 73–127. https://doi.org/10.1561/1400000061.
Iazzi, Antonio, Armando Papa, Rosa Palladino, and Simona Lamusta. “Evaluating Companies’ Impression Management Tactics in Mandatory Sustainability Reporting.” Business Strategy and the Environment 34, no. 6 (September 3, 2025): 6828–48. https://doi.org/10.1002/bse.4326.
Jones Day. “Singapore Court Issues Landmark Decision Recognizing Indonesian Restructuring Plan.” Jones Day, 2024. http://jonesday.com/en/insights/2024/03/singapore-court-issues-landmark-decision-recognizing-indonesian-restructuring-plan.
Khamisu, Muhammad Sani, Ratna Achuta Paluri, and Vandana Sonwaney. “Stakeholders’ Perspectives on Critical Success Factors for Environmental Social and Governance (ESG) Implementation.” Journal of Environmental Management 365 (August 2024): 121583. https://doi.org/10.1016/j.jenvman.2024.121583.
Loh, Lawrence, and Sharmine Tan. “Impact of Sustainability Reporting on Brand Value: An Examination of 100 Leading Brands in Singapore.” Sustainability 12, no. 18 (September 9, 2020): 7392. https://doi.org/10.3390/su12187392.
Luh, Lan Luh. “When Green Meets Governance: How ESG Is Reshaping Directors’ Duties in Common Law.” National University of Singapore, 2026. https://blog.nus.edu.sg/lawresearch/2026/02/16/when-green-meets-governance-how-esg-is-reshaping-directors-duties-in-common-law/.
Mahy, Petra. “Indonesia’s Omnibus Law on Job Creation: Legal Hierarchy and Responses to Judicial Review in the Labour Cluster of Amendments.” Asian Journal of Comparative Law 17, no. 1 (July 12, 2022): 51–75. https://doi.org/10.1017/asjcl.2022.7.
Maljean-Dubois, Sandrine, Hélène Ruiz Fabri, and Stephan W. Schill. “International Investment Law and Climate Change: Introduction to the Special Issue.” The Journal of World Investment & Trade 23, no. 5–6 (December 16, 2022): 737–45. https://doi.org/10.1163/22119000-12340268.
Martiny, Alice, Jonathan Taglialatela, Francesco Testa, and Fabio Iraldo. “Determinants of Environmental Social and Governance (ESG) Performance: A Systematic Literature Review.” Journal of Cleaner Production 456 (June 2024): 142213. https://doi.org/10.1016/j.jclepro.2024.142213.
OECD. G20/OECD Principles of Corporate Governance 2023. OECD Publishing, 2023. https://doi.org/10.1787/ed750b30-en.
Peraturan Komisi Pengawas Persaingan Usaha Nomor 3 Tahun 2023 tentang Penilaian Terhadap Penggabungan, Peleburan, Atau Pengambilalihan Saham Dan/Atau Aset Yang Dapat Mengakibatkan Terjadinya Praktik Monopoli San/Atau Persaingan Usaha Tidak Sehat (2023).
Rahmansyah, Denny, Aldilla Stephanie Suwana, and Albertus Jonathan Sukardi. “A Regional Comparison of ESG Regulations: Indonesia.” Asia Business Law Journal, 2023. https://law.asia/comparison-of-esg-regulations-indonesia/.
Rizal, Muhamad, R. Anang Muftiadi, and Agus Taryana. “Integration of ESG Principles in Business Law: Why Should Indonesian Companies Care?” Social Sciences & Humanities Open 13 (2026): 102447. https://doi.org/10.1016/j.ssaho.2026.102447.
Rizki Risanto, Brian, and Dony Abdul Chalid. “The Impact of Mergers and Acquisitions on ESG Performance in Asia Pasific.” Jurnal Ekonomi Dan Bisnis 29, no. 1 (2026): 1–20. https://doi.org/10.24914/jeb.v29i1.17060.
Sidik, Muhamad, Suherman Suherman, and Atik Winanti. “Supervision of One-Tier Board System in Indonesia (Comparative Study in Malaysia and Singapore).” International Journal of Law and Society 2, no. 3 (July 8, 2025): 192–206. https://doi.org/10.62951/ijls.v2i3.692.
Singapore: Accounting and Corporate Regulatory Authority. “Sustainability Reporting and Assurance Requirements.” ACRA, 2026. https://www.acra.gov.sg/regulations/sustainability-reporting/requirements-timeline/.
Singapore Exchange Limited. “Practice Note 7.6 Sustainability Reporting Guide.” Singapore Exchange Limited, 2026. https://rulebook.sgx.com/rulebook/practice-note-76-sustainability-reporting-guide.
Singapore International Commercial Court (SICC). (2024). Re PT Garuda Indonesia (Persero) Tbk SGHC(I) 1 (2024).
Sun, Zhiyuan. “Evaluation Singapore’s Sustainability Reporting Alignment with the IFRS S1 Standards,” September 3, 2024. https://doi.org/10.20944/preprints202409.0236.v1.
Tan, Gordon Kuo Siong. “Assembling Sustainability Reporting in Singapore.” Competition & Change 26, no. 5 (October 15, 2022): 629–49. https://doi.org/10.1177/10245294211020624.
Tang, Ning, Xiaodong Xu, Yuan-Teng Hsu, and Chih-Yung Lin. “The Impact of ESG Distance on Mergers and Acquisitions.” International Review of Financial Analysis 96 (November 2024): 103677. https://doi.org/10.1016/j.irfa.2024.103677.
Undang-Undang Nomor 40 Tahun 2007 tentang Perseroan Terbatas (UUPT) (2007).
Villiers, Charl de, Sanjaya Kuruppu, and Dinithi Dissanayake. “A (New) Role for Business – Promoting the United Nations’ Sustainable Development Goals through the Internet-of-Things and Blockchain Technology.” Journal of Business Research 131 (July 2021): 598–609. https://doi.org/10.1016/j.jbusres.2020.11.066.
Williams, Cynthia A., and Donna M. Nagy. “Esg and Climate Change Blind Spots: Turning the Corner on Sec Disclosure.” Texas Law Review 99, no. 7 (2021): 1453–85. https://texaslawreview.org/esg-and-climate-change-blind-spots-turning-the-corner-on-sec-disclosure/.