Indonesian Law Journal

FULL E-BOOK INDONESIAN LAW JOURNAL VOLUME 17 N0. 2, 2024

2025-01-02T05:57:37+00:00

The 2024's second edition of Indonesian Law Journal Volume 16 has been published. The discussion topic of this edition is Legal Impact of Geopolitical Tensions on International Trade Agreements and Business and Human Rights National Strategy in relation with Business and Investment Policy. This edition presents 6 (six) articles from authors with various backgrounds. Please enjoy reading as we hope these article in our Journal are beneficial and constructive towards the development of national law.

THE INTERSECTION BETWEEN INVESTMENT AND HUMAN RIGHTS: BUSINESS AND HUMAN RIGHTS NATIONAL STRATEGY AND THE BUSINESS READY PROGRAM IN INDONESIA

2024-12-31T03:08:11+00:00

Indonesia has enacted Presidential Regulation No. 60 of 2023 on Business and Human Rights National Strategy. This regulation is intended to enhance efforts of human rights protection in business practices inspired by United Nations Guiding Principles on Business and Human Rights. In the same year, the World Bank also introduced Business Ready, which serves as Indonesia’s primary policy for investment. Through the utilization of the normative juridical method and secondary data analysis, this study examines the substance of the Presidential regulation and the World Bank's initiative. This research is aimed to find the intersection between Indonesia's concern for protecting human rights and boosting the economy through its Presidential Regulation and its national investment policy. It finds that the Regulation lacks of mandate for human rights due diligence. Additionally, it notes that the B-Ready initiative primarily emphasizes economic, labor, and consumer protection rights, without comprehensively addressing broader human rights enforcement.

The LEGAL IMPLICATION of US-CHINA TRADE WAR ON INDONESIA’S POLICY RELATING TO PALM OIL INDUSTRY

2024-12-31T03:08:11+00:00

Indonesia has been the largest producer and exporter of Crude Palm Oil (CPO) in the world since 2006.However, Indonesia faces complex challenges related to global CPO trade, starting from the global issue of China and the United States trade war, Including other strategic issues. The impact of the complexity of the US and China trade war is hitting Indonesia where palm oil from Indonesia is considered to be old and not environmentally friendly. This will impact market demand and disrupt the stability of national production. So an appropriate policy strategy is needed to manage this. The research objective is used as consideration for stakeholders in reviewing Indonesia's CPO policy in anticipation of the future. The research method uses a sociolegal approach. The research results show that the reasons for the decline in Indonesian CPO exports are the rejection of several European Union countries, which prevented the entry of Indonesian CPO and the influence of the China and United States trade war where soybean and sunflower oil are abundant as boycott between China and the US. Then, to fight against the European Union, Indonesia filed a lawsuit with the WTO, then certification of Palm Oil Plantations in Indonesia as part of the resistance will certainly have a positive impact on Indonesian CPO and developing biodiesel so that CPO consumption is used domestically.

GUARANTEEING ADHERENCE TO HUMAN RIGHTS STANDARDS IN INFRASTRUCTURE PROJECTS: A LEGAL EXAMINATION OF THE NATIONAL STRATEGY FOR BUSINESS AND HUMAN RIGHTS IN INDONESIA'S PUBLIC-PRIVATE PARTNERSHIP LEGAL FRAMEWORK

2025-01-02T05:57:11+00:00

This study analyses the integration of human rights principles into Indonesia’s Public-Private Partnership (PPP) legal framework, focusing on the implementation of Presidential Regulation No. 60 of 2023. The findings indicate that aligning the regulation Indonesia’s PPP framework with international human rights standards, is significant step towards. Key provisions include mandatory human rights due diligence, and the accountability of both public and private actors in projects. Despite this progress, the study identifies that the existing legal framework, such as Presidential Regulation No. 38 of 2015, remains predominantly focused on economic and technical aspects, with limited attention to social and environmental impacts. This gap underscores the need for further efforts to incorporate comprehensive human rights impact assessments and stakeholder engagement into the PPP framework. By drawing on international best practices, the study recommends strengthening legal and institutional mechanisms to ensure PPP projects contribute to equitable, inclusive, and sustainable development.

INDIGENOUS FORESTS AND CARBON TRADING: ASSESSING THE POTENTIAL FOR HUMAN RIGHTS VIOLATIONS

2024-12-31T03:08:12+00:00

To promote national economic growth, the Indonesian government has introduced several laws, including investment policies related to carbon trading in indigenous forests. This article explores the legal concerns surrounding how investment strategies involving carbon trading in these forests could potentially lead to human rights violations, especially affecting Indigenous Peoples (IP). This study utilizes normative research methods and a case approach, with data collected through library research. This study shows that indigenous peoples gain both economically and environmentally from investment strategies involving carbon trading in indigenous forests. However, it may result human rights violations against IP. The state's failure to fully recognize Indigenous Peoples's rights has delayed the official acknowledgment of Indigenous Territories and Indigenous Forests. In contrast, business licenses for companies in the forestry sector trading carbon in Indonesia are processed quickly. This discrepancy can lead to potential human rights violations against IP, including threats to their indigenous forests and unfair access to social forestry management licenses.

ASSESSMENT OF INDONESIA'S LEGAL FRAMEWORK FOR HUMAN RIGHTS IN CORPORATE SETTINGS

2024-12-31T03:08:12+00:00

Indonesia has long upheld the protection of fundamental human rights and labor rights through its Constitution, laws, and regulations. In recent years, this commitment has evolved to incorporate global discourses on human rights in corporate and business contexts—such as the United Nations Guiding Principles on Business and Human Rights (UNGP)—into its legal framework. Key milestones in this progression include the enactment of Presidential Regulation No. 60 of 2023 on the National Strategy for Business and Human Rights, the formation of bodies such as the National and Regional Task Forces on Business and Human Rights (Gugus Tugas Nasional and Gugus Tugas Daerah Bisnis dan Hak Asasi Manusia), and the introduction of mechanisms like the Business and Human Rights Risk Assessment (Penilaian Risiko Bisnis dan Hak Asasi Manusia). These efforts aim to align Indonesia’s approach with international standards on human rights due diligence. It is important to note that during the rapid industrialization of many advanced economies, corporations often operated with minimal regulatory oversight. In contrast, modern Indonesian companies face numerous legal frameworks while striving for similar economic growth. This contrast highlights the unique challenges Indonesian companies face in pursuing rapid economic growth while navigating an increasingly complex regulatory environment. Indonesia already has a robust foundation of regulations and policies aimed at safeguarding labor rights and improving working conditions. What the country needs is not another layer of regulations that risk confusing and burdening business players, but rather an effective system to enforce its existing legal framework to its fullest potential. Imposing extensive compliance requirements—such as responding to over 140 detailed inquiries and providing exhaustive evidence of human rights safeguards—could overwhelm Indonesian businesses and undermine their global competitiveness. Instead of directly replicating regulatory models from advanced economies, Indonesia should tailor its approach to align with its unique socio-economic landscape. This means prioritizing the optimization of current legal instruments, strengthening the rule of law, and enhancing legal certainty. These measures are more likely to foster sustainable development than introducing overly complex or burdensome new regulations that may not align with the nation’s current stage of growth.

THE JUSTICE EROSION OF THE IMPOSITION OF ECONOMIC SANCTIONS IN INTERNATIONAL LAW ENFORCEMENT

2024-12-31T03:08:13+00:00

After the COVID-19 pandemic occurred some time ago, which paralyzed all aspects of life in the world, not long after, in 2022, an armed conflict occurred involving Russia and Ukraine, which continues to this day. In line with the armed conflicts that have emerged recently, various international economic sanctions targeting warring countries have begun to be imposed. Ironically, instead of weakening the sanctioned country’s defense, the embargo imposed by a sanctioned country on a particular country turns out to have a harsh impact on all aspects of the lives of its civilians, both the sanctioned country and the sanctioning country in several cases. The imposition of various international sanctions is one of the causes. Reflecting on this, the author will analyze more deeply what is the concept of international economic sanctions. Secondly, does the imposition of international economic sanctions fulfill the basic concept of implementing economic sanctions today? The method used in this paper is qualitative research with normative juridical methods. From the discussions, It can be concluded that economic sanctions are the withdrawal of trade habits and financial relations for foreign and security policy. Sanctions can be comprehensive, prohibiting commercial activity against entire countries. However, there is uncertainty regarding the length of economic sanctions imposed on a country, which causes prolonged suffering for the people of a country. Apart from that, the dominance of countries that have significant political and economic power has led to the emergence of abuse of the imposition of economic sanctions themselves. The article recommends that countries should compose the development of international legal rules originating from international agreements that focus on three main things: management processes, and results that lead to sustainable benefits based on the principle of equality in creating agreements between countries.