Rethinking Indonesia’s Geothermal Foreign Direct Investment Policy: Certainty and Economic Analysis of Law Perspective

Silviana Putri, Dinda and Arsalan, Haikal and Huang, Nikita Kimberly (2024) Rethinking Indonesia’s Geothermal Foreign Direct Investment Policy: Certainty and Economic Analysis of Law Perspective. Hang Tuah Law Journal, 8 (1). pp. 42-61. ISSN 2549-2055; E-ISSN 2549-2071

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Abstract

This study aims to anylize Indonesian government policy regarding the 100% ownership over geothermal sector projects by foreign direct investors, based on the certainty and effectivity using economic analysis of law perspective. This study is formulated as legal research, using statutory approach, conceptual approach, and comparative approach, as research method. The results of this Based on these explanations, it can be concluded that in terms of certainty, renewable energy investment policies in Indonesia, which frequently change, ultimately reduce the value of that certainty. This is different from Germany which tends to be more stable because it has a renewable energy policy that does not change too often, for example this can be seen in German policy regarding providing incentives to foreign investors. Furthermore, regarding the effectiveness of the policy of 100% ownership by foreign investors for geothermal development projects, based on EaL and game theory, this policy can be said to be effective. However, improvements are needed so that the policy does not conflict with SoNR principles. This improvement, for example, is by using the BOOT scheme used by the Philippines in relation to the geothermal development sector, not only can it be 100% owned by foreign investors without a certain period of time.

Item Type:	Article
Uncontrolled Keywords:	Geothermal; Foreign Direct Investment; Certainty; Effectivity; Economic Analysis of Law
Subjects:	K Law > K Law (General)
Divisions:	Faculty of Law > Department of Law
Depositing User:	DINDA SILVIANA PUTRI
Date Deposited:	01 Apr 2024 03:56
Last Modified:	01 Apr 2024 07:01
URI:	http://repository.ubaya.ac.id/id/eprint/46199

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