Comparing Solar Energy Investment Policies: Legal Perspectives from Indonesia and Vietnam

Article Sidebar

pdf
Published: Apr 14, 2025
DOI: https://doi.org/10.19109/nurani.v25i1.26244
Keywords:
Investment policy, Legal dynamics, Renewable energy, Solar technology

Main Article Content

Lu Sudirman
Faculty of Law, Universitas Internasional Batam, Indonesia
Nurlaily Nurlaily
Faculty of Law, Universitas Internasional Batam, Indonesia
Febri Jaya
Faculty of Law, Universitas Internasional Batam, Indonesia

Abstract

Although Indonesia possesses significant potential for solar energy, it remains behind Vietnam, highlighting the critical need for policy and investment reforms to meet the increasing demand for renewable energy. This study aims to explores the normative issues within the Indonesian legal framework for investment and benchmarks it against Vietnam’s to assess the legal gap that may have hindered Indonesia’s progress in supporting solar technology investments. This study adopts a normative-empirical approach by integrating normative legal analysis of regulatory frameworks with the presentation and examination of empirical data. The empirical dimension of this research incorporates analysis of implementation outcomes, including renewable energy capacity data, carbon footprint measurements, and regulatory effectiveness indicators. The results of this study highlights normative inadequacies from Indonesia, with the lack of foundational normative support, followed by the lack of support in the form of complimentary regulations. Vietnam, on the other hand, has a significantly more developed framework to support investments in solar technology, serving as comparative evidence of the stark contrast between the country’s success and Indonesia’s ongoing challenges.

Article Details

How to Cite
Sudirman, L., Nurlaily, N., & Jaya, F. (2025). Comparing Solar Energy Investment Policies: Legal Perspectives from Indonesia and Vietnam. Nurani: Jurnal Kajian syari’ah Dan Masyarakat, 25(1), 109-121. https://doi.org/10.19109/nurani.v25i1.26244
Issue
Vol. 25 No. 1 (2025): Nurani: jurnal kajian syari'ah dan masyarakat
Section
Artikel
Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Creative Commons License
Nurani by http://jurnal.radenfatah.ac.id/index.php/Nurani is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

How to Cite

Sudirman, L., Nurlaily, N., & Jaya, F. (2025). Comparing Solar Energy Investment Policies: Legal Perspectives from Indonesia and Vietnam. Nurani: Jurnal Kajian syari’ah Dan Masyarakat, 25(1), 109-121. https://doi.org/10.19109/nurani.v25i1.26244

References

Bahlian, M. (2017). Pengaruh Corporate Social Responsibility Dalam Meningkatkan Penanaman Modal Asing. Jurnal Hukum Samudra Keadilan, 12(1), 26–43.

Chen, J., Su, F., Jain, V., Salman, A., Tabash, M. I., Haddad, A. M., Zabalawi, E., Abdalla, A. A., & Shabbir, M. S. (2022). Does Renewable Energy Matter to Achieve Sustainable Development Goals? The Impact of Renewable Energy Strategies on Sustainable Economic Growth. Frontiers in Energy Research, 10, 1–7.

Dhona, R., & Dalimi, R. (2023). Economic analysis of solar photovoltaic power plant planning at Taman Melati Depok Apartment. Jurnal Pendidikan Teknologi Kejuruan, 6(2), 98–105. https://doi.org/10.24036/jptk.v6i2.32823

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

Do, T. N., Burke, P. J., Nguyen, H. N., Overland, I., Suryadi, B., Swandaru, A., & Yurnaidi, Z. (2021). Vietnam’s solar and wind power success: Policy implications for the other ASEAN countries. Energy for Sustainable Development, 65, 1–11. https://doi.org/https://doi.org/10.1016/j.esd.2021.09.002

Erwin, E., Noor, N. A. M., & Wicaksono, M. B. A. (2024). Legal Strategies in Increasing Foreign Direct Investment in Indonesia. International Journal of Social and Education (INJOSEDU), 1(4), 875–885.

Fenner, R. A., & Cernev, T. (2024). Beyond 2030: structures for achieving sustainable development. Frontiers in Climate, 6, 1–10.

Ghaziani, M. A., Fazaeli, M., Ghaziani, M. A., & Amin, H. (2023). Market Access Obligations and Foreign Investments in Renewable Energy: an Analysis of International Trade and Investment Law Instruments. Indonesian Journal of International Law, 21(1), 51–74. https://doi.org/10.17304/ijil.vol21.1.3

IRENA, & ACE. (2022). Renewable Energy Outlook for ASEAN: Towards a Regional Energy Transition (2nd Edition).

Joewono, A., Angka, P. R., Sitepu*, R., & Yuliati, Y. (2023). Energy Assessment of Solar Power Plant On-Grid Bi-direction 3 KW 1 Phase. Aceh International Journal of Science and Technology, 12(3), 317–326. https://doi.org/10.13170/aijst.12.3.30259

Khamid, I. A. (2022). Study on Potential Utilization of New Renewable Energy to Support the Electricity System in Warudoyong Area. FIDELITY : Jurnal Teknik Elektro, 4(1), 19–24. https://doi.org/10.52005/fidelity.v4i1.83

Kibtiah, T. M., Dewi, G. D. P., Bainus, A., Abdurrahman, M. F., RHasan, D., & Suitela, K. M. (2024). Solar Energy in Indonesia: The Implementation of Sustainable Development Goals for Net Zero Emissions. IOP Conference Series: Earth and Environmental Science, 1324(1), 1–9. https://doi.org/10.1088/1755-1315/1324/1/012093

Laksana, E. P., Prabowo, Y., Sujono, S., Sirait, R., Fath, N., Priyadi, A., & Purnomo, M. H. (2021). Potential Usage of Solar Energy as a Renewable Energy Source in Petukangan Utara, South Jakarta. Jurnal Rekayasa Elektrika, 17(4), 212–216. https://doi.org/10.17529/jre.v17i4.22538

Le, H. T., Sanseverino, E. R., Nguyen, D.-Q., Di Silvestre, M. L., Favuzza, S., & Pham, M.-H. (2022). Critical Assessment of Feed-In Tariffs and Solar Photovoltaic Development in Vietnam. Energies, 15(2), 1–20. https://doi.org/10.3390/en15020556

Le, V. D., Le, T. T., Rangaraju, S., Vo, P. Le, & Nguyen, K. V. (2023). The Potential for solar energy in Vietnam: A study conducted to determine whether solar energy is still relevant for meeting growing power demand in Vietnam in 2023. Business and Technology, 5(2), 1–5.

Mulyana, I., & Siswandi, A. G. (2018). Indonesia’s Regulation and Policy in the Energy Sector: Urgency to Promote Energy Efficiency in Urban Areas. Yustisia Jurnal Hukum, 7(2), 211–227. https://doi.org/10.20961/yustisia.v7i2.18732

Negara, T. A. S. (2023). Normative Legal Research in Indonesia: Its Originis and Approaches. Audito Comparative Law Journal (ACLJ), 4(1), 1–9. https://doi.org/10.22219/aclj.v4i1.24855

Oduro, P., Uzougbo, N. S., & Ugwu, M. C. (2024). Renewable energy expansion: Legal strategies for overcoming regulatory barriers and promoting innovation. International Journal of Applied Research in Social Sciences, 6(5), 927–944. https://doi.org/10.51594/ijarss.v6i5.1145

Pambudi, N. A., Firdaus, R. A., Rizkiana, R., Ulfa, D. K., Salsabila, M. S., Suharno, & Sukatiman. (2023). Renewable Energy in Indonesia: Current Status, Potential, and Future Development. In Sustainability (Vol. 15, Issue 3, pp. 1–29). https://doi.org/10.3390/su15032342

Poszwa, G. (2021). Energy investments in renewable energy sources as a way towards enterprises’ sustainable development. E3S Web of Conferences, 307, 1–16. https://doi.org/10.1051/e3sconf/202130705002

Raihan, A., Pavel, M. I., Muhtasim, D. A., Farhana, S., Faruk, O., & Paul, A. (2023). The role of renewable energy use, technological innovation, and forest cover toward green development: Evidence from Indonesia. Innovation and Green Development, 2(1), 1–12. https://doi.org/https://doi.org/10.1016/j.igd.2023.100035

Reyseliani, N., & Purwanto, W. W. (2021). Pathway towards 100% renewable energy in Indonesia power system by 2050. Renewable Energy, 176, 305–321. https://doi.org/https://doi.org/10.1016/j.renene.2021.05.118

Romero-Castro, N., Ángeles López-Cabarcos, M., Miramontes-Viña, V., & Ribeiro-Soriano, D. (2023). Sustainable energy transition and circular economy: The heterogeneity of potential investors in rural community renewable energy projects. Environment, Development and Sustainability, 1–26. https://doi.org/10.1007/s10668-022-02898-z

Saidi, K., Toumi, H., & Zaidi, S. (2017). Impact of Information Communication Technology and Economic Growth on the Electricity Consumption: Empirical Evidence from 67 Countries. Journal of the Knowledge Economy, 8(3), 789–803. https://doi.org/10.1007/s13132-015-0276-1

Sharma, P., Sharma, P., & Thakur, N. (2024). Sustainable farming practices and soil health: a pathway to achieving SDGs and future prospects. Discover Sustainability, 5(1), 1–14. https://doi.org/10.1007/s43621-024-00447-4

Sudarmaji, E., Achsani, N. A., Arkeman, Y., & Fahmi, I. (2022). Determinants of Carbon Emission and Rebound Effect in Asean Countries: Kaya and LMDI Decomposition. Indonesian Journal of Business and Entrepreneurship, 8(2), 240–250. https://doi.org/10.17358/ijbe.8.2.240

Tan, D. (2021). Metode Penelitian Hukum: Mengupas dan Mengulas Metodologi dalam Menyelenggarakan Penelitian Hukum. NUSANTARA: Jurnal Ilmu Pengetahuan Sosial, 8(5), 2463–2478. https://jurnal.um-tapsel.ac.id/index.php/nusantara/article/view/5601

Tvaronavičienė, M. (2024). The Transition towards Renewable Energy: The Challenge of Sustainable Resource Management for a Circular Economy. In Energies (Vol. 17, Issue 17, pp. 1–9). https://doi.org/10.3390/en17174242

Wakhidiyanto, I., & Raldi Hendro Koestoer. (2022). Lessons From Vietnam’s Solar Power Plant Growth Development for Indonesia to Reach Net Zero Emission. Jurnal Nasional Pengelolaan Energi MigasZoom, 4(2), 93–102. https://doi.org/10.37525/mz/2022-2/405

Worldometer. (2022). Indonesia CO2 Emissions. Worldometer.

Yan, J., Liu, C., Xiao, B., & Wang, S. (2024). Environmental dynamics: unraveling the nexus of air pollution, population agglomeration, and sustainable economic development in China: a provincial-level empirical analysis. Frontiers in Environmental Science, 12, 1–14.

Yang, Z., Su, D., Xu, S., & Han, X. (2024). Institutional investors and corporate green innovation: Evidence from China. Pacific Economic Review, 29(2), 230–266. https://doi.org/https://doi.org/10.1111/1468-0106.12440

Yuliansyah, R., Lestari, T., & Muhti, S. (2024). Perbandingan Hukum Penanaman Modal dan Investasi Di Indonesia dan Di Tiongkok. Aktivisme: Jurnal Ilmu Pendidikan, Politik Dan Sosial Indonesia, 1(3), 210–225. https://doi.org/10.62383/aktivisme.v1i3.350