Hang Tuah Law Journal

Minority Shareholders Activism in Family Firms: A Comparative Study of Indonesian and South Korean Law

Jesslyn Widjaja — 2025-06-14

Family firms significantly contribute to the economies of Indonesia and South Korea. Despite their importance, these firms face challenges related to succession and minority shareholder rights. Indonesia lacks a robust regulatory framework for minority shareholder activism, relying primarily on the Indonesian Company Law despite the existence of the General Guidelines for Governance of Indonesian Family-Owned Businesses. In contrast, South Korea's chaebols, large family-controlled conglomerates, face stricter regulatory oversight to protect minority shareholders, including the Monopoly Regulation and FairTrade Act and the Korean Stewardship Code. Therefore, this paper aims to find the differences between Indonesian and South Korean legal regime on the minority shareholder activism regulation for family firms, while also aiming to bring practical policy suggestions. To achieve such purpose, this study employs a juridical legal method with comparative approach. The study provides comparative analysis from the two different jurisdictions based on its regulations, and suggesting that providing stricter regulation on institutional investors for family-firms, as well as adding the guidelines with more specific recommendation for minority shareholding member of family firms may help in promoting a more equitable corporate governance regime in family-owned businesses.

Strengthening Regional Autonomy: The Idea of Reorganizing Regional Property Regulations

Febriansyah Ramadhan — 2025-06-16

The administration of regional property via usage programs constitutes a source of regional financial Revenue. The administration of regional property is governed by Government Regulation Number 1 of 2014 about the Management of State/Regional Property, subsequently supplemented by Regulation of the Minister of Home Affairs Number 19 of 2016 on the Management of Regional Property. Nonetheless, the regulation of the regional property (Barang Milik Daerah/BMD) sector encounters numerous challenges, particularly regarding the coordination required between the Minister of Home Affairs and the Minister of Finance in developing general and technical policies on regional property, which remains suboptimal. Consequently, the Minister of Home Affairs Regulation Number 19/2016 remains inadequate as a regional reference for formulating Regional Regulations/Regulations of Regional Heads, leading many to directly consult the Minister of Finance, which governs State Property. According to the description above, the subsequent challenges are articulated: Issues in regulating the regional property sector at both central and regional levels. Format for the Reorganization of the Central Regulation of the Regional Public Property Sector. Normative (legal) research methodologies, including statutory, conceptual, and case approaches, are employed to analyze the problem formulation. Findings from this research: Regulatory issues arise from a lack of alignment among ministries in coordinating efforts. The Minister of Home Affairs reports to the Coordinating Minister for Political, Legal, and Security Affairs, whereas the Coordinating Minister for the Economy oversees the Minister of Finance. The organization of rules involves distinguishing between Government rules for state property and regional property, necessitating cross-sectoral harmonization throughout their formulation. This must be accomplished due to the control of regional property under many laws, necessitating harmonization in formulating technical regulations at the governmental level, along with heightened care. Recent legislation must be modified to align overarching policies and their technical execution.

Interpretation of Makar Offense in the Dynamics of the Government Regime in Indonesia

Yuni Ristanti — 2025-06-16

The purpose of the research is to analyze the development of interpretation against treason/Makar offense on the Penal Code in the law enforcement in Indonesia. This study is a normative legal research which refers to the foundherentism theory and the interpretation of judges theory against enforcement, the supreme court‘s Verdict No. 574 K / Pid /2012, Verdict number 38 / pid.B /2011/PN.Wmn, verdict No. 07/Pid/2015/PT.AMB. The results of the research finds out that Makar offense has various meanings, Penal Code itself does not on strictly define what Makar offense is. It results in vague norms. Therefore, the interpretation against the article 106 of the penal Code relies on the development of the interpretation of the verdict about Makar offense. So far, various verdict interprets or connect Makar offense -as stipulated in article 106 of Penal Code- with subversion, independence, separatism (martial law i.e. terrorism and armed rebellion). Conducting an independence ceremony which is not an Indonesian independence ceremony, sticking a flag other than the Indonesian flag, an oration which increase the sense of nationality other than a sense of nationality towards the Indonesian state, producing a banner to commemorate the anniversary of independence instead of the Indonesian state.

Strengthening Carbon Tax: Implementing the Paris Agreement and the Green Economy in Indonesia

Ahmad RIzal Roby Ananta — 2025-08-07

Climate change triggered by greenhouse gas emissions from fossil fuels is increasingly threatening the ecosystem and the global economy. A carbon tax is one of the policy instruments implemented in various countries, including Indonesia, to reduce emissions and encourage the transition to a green economy. Indonesia adopted this policy through Law No. 7 of 2021 on Carbon Taxes, with an initial rate of IDR 30 per kg CO₂e (USD 2 per ton CO₂e), making it one of the lowest in the world. This study aims to evaluate the effectiveness of the carbon tax policy in Indonesia by comparing it with Sweden. This country has implemented a carbon tax since 1991 and has succeeded in reducing emissions by 27%. This study uses a normative approach with comparative law, statutory, and conceptual approaches. Data were collected from primary regulations, scientific journals, and international reports related to carbon taxes. The results show that the implementation of the carbon tax in Indonesia still faces various obstacles, such as low rates, dependence on fossil fuels, and suboptimal carbon trading mechanisms.

Permanent Sovereignty in the Context of Trade Law: Addressing Legal Constraints on Downstream Policy Implementation

Gita Venolita Valentina Gea — 2025-09-15

The Government of Indonesia has expressed a strong commitment to enhancing national welfare through the implementation of downstream policies across various trade sectors, including those involving natural resource commodities. A range of regulatory measures has been introduced, from mandates on domestic processing to the imposition of export bans. Nevertheless, the execution of such downstream policies has raised concerns regarding their compatibility with obligations under international trade agreements to which Indonesia is a party. This paper seeks to analyze the implementation of downstream policies in light of international trade law. Employing a normative juridical approach, the study finds that down streaming in the natural resources sector constitutes a manifestation of the principle of permanent sovereignty over natural resources. A thorough legal examination of this principle suggests that it may qualify as a norm of jus cogens, thereby holding a superior normative status that can prevail over conflicting provisions in international trade agreements.

Protecting National Energy: The Legal Framework on Domestic Gas in Nigeria and Lessons from Indonesia

Iyadah John Viko — 2025-10-10

Nigeria is endowed with vast natural resources and significant gas reserves, and is often called a “province of gas.” In spite of the huge gas reserves available, the country prioritises crude oil over gas, leading to inefficiencies and waste in the gas sector. Although gas flaring and venting are globally recognised as harmful and wasteful practices, they have persisted in the country for over six decades due to various challenges. This unhealthy situation has resulted in unreliable gas supply to the power sector and raised questions about the adequacy and efficacy of the legal and regulatory framework for domestic gas protection and utilisation in the country. With the enactment of the Petroleum Industry Act in 2021, the legal and regulatory landscape has been transformed to provide for an efficient, effective, and commercially viable petroleum industry that enhances gas protection and utilisation. Relying on the doctrinal legal research methodology, the paper sought to analyse extant laws, regulations, and institutions responsible for domestic gas protection and utilisation in Nigeria, with a view to ascertaining their adequacy and efficacy. The analysis provided core insights and revealed that although the current framework is laudable and quite adequate, certain inherent flaws could undermine its objectives and hinder effective gas protection and utilisation. With comparative insights from Indonesia, the paper recommended statutory reforms and effective implementation of laws and regulations. By reforming the legal framework and implementing laws effectively, Nigeria can fully unlock its gas potential and promote a more efficient and sustainable gas sector.

Systemic Approach Repatriation of Communities Rights Affected by Marine Fencing in Tangerang

Rayyan Alkhair — 2025-10-13

The construction of Pantai Indah Kapuk 2 (PIK 2), a waterfront city mega-project in Tangerang, Indonesia, has raised legal, social, and environmental concerns. While designated as a National Strategic Project (PSN) due to its economic benefits, such as job creation and green tourism development, the project has caused significant adverse impacts. Specifically, a 30-kilometer sea fence obstructed access for approximately 4,000 fishermen, resulting in an estimated economic loss of IDR 16 billion since September 2024. This study examines the constitutionality of sea privatization through land certificates (SHM and SHGB) issuance and evaluates government responses to this issue. Using a normative juridical approach, the research analyzes legal frameworks governing coastal resource management, including UNCLOS 1982 and Indonesian laws such as Law No. 27/2007 and Law No. 26/2007. The findings reveal that government actions—sealing the area, dismantling the sea fence with military assistance, and revoking SHM/SHGB—align with regulations but lack systemic coordination. Key issues remain unresolved: criminal prosecution of perpetrators, economic restitution for affected fishermen, and environmental rehabilitation. This article proposes a systemic approach to restoring fishermen's rights through criminal enforcement against illegal actors, financial compensation for economic losses, ecosystem restoration, and strengthening public participation in spatial planning. Drawing lessons Australia's Community Participation Plans (CPP), the study emphasizes inclusive development that balances economic growth with social justice and environmental sustainability.

The Principle of Free, Prior, and Informed Consent in Preventing Deforestation in Indigenous Forests

Radhityas Kharisma Nuryasinta — 2025-10-15

Free, Prior, and Informed Consent (FPIC) is an International legal standard that guarantees indigenous peoples' right to consent to projects affecting their territories and lives. Indonesia has not explicitly adopted this principle in its national legal system, so the management of customary forest areas. The absence of clear FPIC regulations creates legal loopholes impacting the legitimacy of business licenses and the protection of indigenous peoples' rights, which can lead to human rights violations. This study aims to analyze how FPIC is regulated and implemented in Indonesian national law, as well as assess the legal consequences of noncompliance in the context of customary forest management. Using normative legal research methods and statutory and conceptual approaches, the study concludes that disregarding FPIC not only goes against the spirit of the constitution and international commitments but also contributes to social disintegration and unequal power relations between indigenous peoples and the state. Therefore, the principle of FPIC must be explicitly recognized in national laws and regulations, and participatory, fair, and legally binding implementation mechanisms must be established to realize inclusive and ecologically just development.

Constitutional Reform as Neoliberal Trojan Horse: The Politics of New Constitutionalism in the Global South

Syahriza Alkohir Anggoro — 2025-10-25

The increasing trend of constitutional reform in the global South for the last three decades has marked a shift from the state interventionism regime to free market neoliberalism. This article explores the concept of new constitutionalism which has been used in comparative constitutional law studies to understand the adoption of neoliberal legal norms through constitutional reform. It argues that the constitutionalization of neoliberal features cannot be separated from the context of the global imperialism hegemony which has an interest to establish a market-friendly legal framework in global South. Incorporating neoliberal legal norms into the economic constitution at the national level offers an effective way to lock in neoliberal value as a normative order for the state institutions and therefore, that place limitation of state intervention toward market.

Legal Protection Framework and Bankruptcy Risk Management: A Case Study of the Merah Putih Cooperative

Leony Ghuusbertha Marpaung — 2025-10-31

This study explores the legal protection of members of the Merah Putih Cooperative in Indonesia, focusing on the risks of losses that could lead to bankruptcy. The research problem lies in the inconsistency between the social character of cooperatives and the bankruptcy legal framework. Using a doctrinal legal analysis of Law Number 25 of 1992 on Cooperatives and Law Number 37 of 2004 on Bankruptcy and PKPU, the study identifies a gap in the legal provisions regarding the status of cooperative members in the bankruptcy process. Specifically, cooperative members, who are both owners and service users, lack clear legal standing as creditors, which exposes them to the loss of savings and economic rights. The study also finds that the principles of kinship, justice, and shared responsibility in cooperatives are not adequately integrated with the formalistic and corporatist approach of bankruptcy law. The study concludes that reformulating legal policies is necessary to accommodate the unique characteristics of cooperatives within the bankruptcy legal system. This includes recognizing the legal status of members and developing deposit protection mechanisms, ensuring a more just and responsive legal framework for the people’s economy.