Legal Certainty of Carbon Credits as FDI Objects: Indonesian Investment Normative Vacuum
Article Sidebar
Main Article Content
Abstract
The green economic transition introduces carbon credits as foreign direct investment objects. However, the Indonesian investment law regime suffers from a severe normative vacuum due to the absence of carbon credit qualifications as intangible assets. This doctrinal research is operationalized utilizing statutory, conceptual, and comparative approaches to untangle this legal standing issue. The results demonstrate that the lack of property rights recognition over carbon assets triggers significant legal uncertainty for foreign investors. This condition creates high risks regarding indirect expropriation threats without compensation and severe ambiguity in cross-border capital repatriation procedures. The systemic implications of this regulatory dissonance directly place Indonesian jurisdiction in a vulnerable position against international arbitration dispute threats. Foreign tribunals possess potential to interpret these entities as legitimate protected assets. Conclusively, filling the legal vacuum through statutory requalification of carbon units as investment objects constitutes an absolute urgency to guarantee investment certainty while mitigating state jurisdictional losses.
Downloads
Article Details
Section
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
How to Cite
References
Andrian, Mazhar, Rani Nuraeni Harahap, and Michael Purnomo. “Peran Perseroan Sebagai Pelaku Usaha Perdagangan Karbon Untuk Mitigasi Perubahan Iklim.” Jurnal Locus Penelitian Dan Pengabdian 4, no. 8 (August 2025): 7627–39. https://doi.org/10.58344/locus.v4i8.4670.
Apriyanti, Elisya Karina. “Pergeseran Paradigma Hukum Investasi Internasional: Menyeimbangkan Perlindungan Foreign Direct Investment (FDI) Dengan Kedaulatan Regulasi Negara Dalam Konteks Reformasi Perjanjian Indonesia Pasca-BIT.” Media Hukum Indonesia (MHI) 3, no. 4 (2025): 217–24. https://ojs.daarulhuda.or.id/index.php/MHI/article/view/2455.
Arliman S, Laurensius. “Penanaman Modal Asing Di Sumatera Barat Berdasarkan Undang-Undang Nomor 25 Tahun 2007 Tentang Penanaman Modal.” SUPREMASI Jurnal Hukum 1, no. 1 (October 2018): 8–23. https://doi.org/10.36441/supremasi.v1i1.153.
Ayu Taduri, Januari Nasya. “The Legal Certainty and Protection of Foreign Investment Againsts Investment Practices in Indonesia.” Lex Scientia Law Review 5, no. 1 (May 30, 2021): 119–38. https://doi.org/10.15294/lesrev.v5i1.46286.
Baykhaqi, Muhammad Syabil, and Siti Anisah. “Establishing Potential Bilateral Investment Treaty Between Indonesia and Japan to Bridge IJEPA.” Prosiding Seminar Hukum Aktual Fakultas Hukum Universitas Islam Indonesia 3, no. 5 (2025): 1–22. https://journal.uii.ac.id/psha/article/view/44155.
Bella, Tutun Zalsal. “Pengaturan Perdagangan Bursa Karbon Di Indonesia Serta Perbandingan Pengaturan Perdagangan Bursa Karbon Dengan New Zealand.” Mahkamah : Jurnal Riset Ilmu Hukum 2, no. 2 (March 2025): 08–18. https://doi.org/10.62383/mahkamah.v2i2.529.
Bennett, Lisa. “Are Tradable Carbon Emissions Credits Investments? Characterization and Ramifications Under International Investment Law.” New York University Law Review 85, no. 5 (2010): 1581–1617. https://nyulawreview.org/issues/volume-85-number-5/are-tradable-carbon-emissions-credits-investments-characterization-and-ramifications-under-international-investment-law/.
Brauch, Martin Dietrich. “Climate Action Needs Investment Governance, Not Investment Protection and Arbitration.” SSRN Electronic Journal, 2024. https://doi.org/10.2139/ssrn.4837078.
Chairunnisa, Aliya. “Advisory Opinion Oleh International Court of Justice Terkait Perubahan Iklim.” Indonesia Research Institute for Decarbonization, 2025. https://irid.or.id/advisory-opinion-oleh-international-court-of-justice-terkait-perubahan-iklim/.
Ekardt, Felix, Paula Roos, Marie Bärenwaldt, and Lea Nesselhauf. “Energy Charter Treaty: Towards a New Interpretation in the Light of Paris Agreement and Human Rights.” Sustainability 15, no. 6 (March 2023): 5006. https://doi.org/10.3390/su15065006.
Farhan, Mochammad, Muhamad Dikri Purnama, Muhammad Fauzan Irhamni Haris, and Ikhwan Aulia Fatahillah. “Efektivitas Regulasi Nasional Dalam Mendukung Target NDC Indonesia Sesuai Perjanjian Paris (Studi PERPRES No.98/2021 Tentang Penyelenggaraan Nilai Ekonomi Karbon): Analisa PERPRES No.98/2021 Tentang Penyelenggaraan Nilai Ekonomi Karbon.” Journal of Indonesian Comparative of Syari’ah Law 8, no. 1 (April 1, 2025): 119–36. https://doi.org/10.21111/jicl.v8i1.13283.
Gao, Shuai, Meng-Yu Li, Mao-Sheng Duan, and Can Wang. “International Carbon Markets under the Paris Agreement: Basic Form and Development Prospects.” Advances in Climate Change Research 10, no. 1 (March 2019): 21–29. https://doi.org/10.1016/j.accre.2019.03.001.
Gehring, Markus, and Marios Tokas. “Synergies and Approaches to Climate Change in International Investment Agreements.” The Journal of World Investment & Trade 23, no. 5–6 (December 2022): 778–812. https://doi.org/10.1163/22119000-12340270.
Jia, Hui, Daehwan Kim, and Hyunjin Kwon. “Sports NFTs as Emerging Marketing Technologies: A Systematic Literature Review of Consumer Value, Brand Engagement, and Governance Implications.” Administrative Sciences 16, no. 5 (May 2026): 229. https://doi.org/10.3390/admsci16050229.
Julianti, Lis, and Abdul Kadir Jaelani. “The Regulation of Renewable Energy in Indonesia Creating Green Investment for Tourism Industry.” In Advances in Social Science, Education and Humanities Research, 660–67, 2024. https://doi.org/10.2991/978-2-38476-315-3_90.
Kabir, Syahrul Fauzul. “Krisis Dan Reformasi: Definisi Investasi Dalam Perjanjian Investasi Bilateral Di Negara Dunia Ketiga.” Jurnal Hukum Mimbar Justitia 10, no. 1 (June 28, 2024): 59–80. https://doi.org/10.35194/jhmj.v10i1.4131.
Kementrian Keuangan. “Mengenal Bursa Karbon Indonesia (Indonesia Carbon Exchange) Dan Tantangannya Di Masa Depan.” Kementrian Keuangan Direktorat Jenderal Kekayaan Negara, 2024. https://www.djkn.kemenkeu.go.id/kpknl-lampung/baca-artikel/17264/Mengenal-Bursa-Karbon-Indonesia-Indonesia-Carbon-Exchange-dan-Tantangannya-di-Masa-Depan.html.
Leonard, Jessica, Prita Amalia, and An Chandrawulan. “Indonesian Perspective on The Investor–State Dispute Settlement Mechanism for Foreign Investment Dispute Settlement in The Field of Intellectual Property Rights.” Indonesia Law Review 10, no. 1 (April 30, 2020): 17–28. https://doi.org/10.15742/ilrev.v10n1.615.
M. Arif Florisadeg. “Peran Undang-Undang Cipta Kerja Dalam Reformasi Hukum Investasi Di Indonesia.” Jurnal Hukum, Administrasi Publik Dan Negara 2, no. 1 (December 2024): 09–21. https://doi.org/10.62383/hukum.v2i1.67.
Maharani, Agatha Sevilla, Muhamad Muhdar, and Rahmawati Alhidayah. “Penggunaan Certified Emission Reductions Sebagai Bukti Objek Transaksi Carbon Crediting.” Jurnal de Jure 12, no. 2 (October 1, 2020): 18–31. https://doi.org/10.36277/jurnaldejure.v12i2.467.
Majeed, Nasir, Amjad Hilal, and Arshad Nawaz Khan. “Doctrinal Research in Law: Meaning, Scope and Methodology.” Bulletin of Business and Economics (BBE) 12, no. 4 (December 25, 2023): 559–63. https://doi.org/10.61506/01.00167.
Napitupulu, Dona Regina, Damos Dumoli Agusman, and Helitha Novianty Muchtar. “The Application of Legitimate Expectations to The Investment Legal Framework in Indonesia.” Innovative: Journal Of Social Science Research 3, no. 3 (July 2023): 2573–86. https://j-innovative.org/index.php/Innovative/article/view/2211.
Prihatiningtyas, Wilda, Suparto Wijoyo, Indria Wahyuni, and Zuhda Mila Fitriana. “Perspektif Keadilan Dalam Kebijakan Perdagangan Karbon (Carbon Trading) Di Indonesia Sebagai Upaya Mengatasi Perubahan Iklim.” Refleksi Hukum: Jurnal Ilmu Hukum 7, no. 2 (August 9, 2023): 163–86. https://doi.org/10.24246/jrh.2023.v7.i2.p163-186.
PwC Indonesia. Indonesia Carbon Market White Paper. Jakarta: PwC Indonesia, 2024. https://www.pwc.com/id/en/publications/esg/indonesia-carbon-market-white-paper.pdf.
Ramstein, Céline, Goran Dominioni, Sanaz Ettehad, and Long Lam. State and Trends of Carbon Pricing 2019. Washington, DC: World Bank, 2019. https://doi.org/10.1596/978-1-4648-1435-8.
Riswandi, Budi Agus, Abdurrahman Alfaqiih, and Lucky Suryo Wicaksono. “Design of Equity Crowdfunding in the Digital Age.” Laws 12, no. 1 (January 11, 2023): 8. https://doi.org/10.3390/laws12010008.
Romlah, Siti, Salma Zavira, and Khansa Muafa. “Implementation of Progressive Legal Theory in Law Enforcement in Indonesia.” Journal La Sociale 1, no. 6 (December 2020): 24–30. https://doi.org/10.37899/journal-la-sociale.v1i6.187.
Salvatore, Lea di. Investor–State Disputes in the Fossil Fuel Industry. Salvatore: International Institute for Sustainable Development, 2021. https://www.iisd.org/system/files/2022-01/investor–state-disputes-fossil-fuel-industry.pdf.
Sinaga, Irene Puteri Alfani Sofia, Eka Nurhikmah, and Nelvina Djaja. “Pertanggungjawaban Hukum Dalam Praktik Carbon Trading Di Indonesia.” UNES Law Review 8, no. 3 (March 2026): 747–68. https://doi.org/10.31933/3svnez68.
Soeharso, Silverius Yoseph, Agus Surono, Adnan Hamid, and Eddy Pratomo. “Indonesian Carbon Market Governance Under Presidential Regulation No. 98/2021: Effectiveness, Legal Gaps, And Indigenous RightIndonesian Carbon Market Governance Under Presidential Regulation No. 98/2021: Effectiveness, Legal Gaps, And Indigenous Right.” International Journal of Multidisciplinary Research and Analysis 09, no. 03 (March 26, 2026): 1276–83. https://doi.org/10.47191/ijmra/v9-i3-44.
Sutanto, Marko Cahya. “Konsistensi Pengaturan Nasionalisasi (Expropriation) Dalam ASEAN Comprehensive Investment Agreement (ACIA) Dengan Hukum Penanaman Modal Indonesia.” Acta Diurnal Jurnal Ilmu Hukum Kenotariatan Dan Ke-PPAT-An 4, no. 2 (June 30, 2021): 295–314. https://doi.org/10.23920/acta.v4i2.597.
The International Institute for the Unification of Private Law. “Verified Carbon Credits.” The International Institute for the Unification of Private Law, 2021. https://www.unidroit.org/work-in-progress/verified-carbon-credits/.
Winata, Agung Sujati. “Perlindungan Investor Asing Dalam Kegiatan Penanaman Modal Asing Dan Implikasinya Terhadap Negara.” Ajudikasi : Jurnal Ilmu Hukum 2, no. 2 (December 31, 2018): 127–36. https://doi.org/10.30656/ajudikasi.v2i2.902.
Zaid, M., Hartiwiningsih Hartiwiningsih, and Muhammad Rustamaji. “Legal Framework for the Development of the Indonesian Economy: Mochtar Kusumaatmadja’s Perspective.” In Advances in Social Science, Education and Humanities Research, 51–56, 2024. https://doi.org/10.2991/978-2-38476-218-7_9.