The IMPLEMENTATION OF GREEN INVESTMENT UNDER PRESIDENTIAL DECREE NUMBER 112 YEAR 2022

Abstract

In recent years, the amount of carbon emission is increasing in expedite number, due to industrial activities. This development will affect not only to the environment, but also to the economic activity in the future. Consequently, each state, including Indonesia, is intensely formulating their regulation which stipulates about “green investment”. This term defined as an investment activity that focused on environmental issues, such as sustainability, climate change and renewable energy. In regards to the issue, Law Number 25 Year 2007 concerning Investment, as amended by Law Number 11 Year 2020 concerning Job Creation has accommodated it under Article 3 paragraph 1 point h, where investment should be conducted in an environmentally sound manners. To urge the green investment, Indonesia enacted Presidential Decree Number 112 Year 2022 concerning The Acceleration of Renewable Energy for National Electricity, in order to replace the Coal Steam Power Plant (PLTU) which deemed non-friendly to the environment. The objective of this paper is to depict how the implementation of green investment in the development of renewable energy for Indonesian electricity. Judicial Normative will be the method used in this paper. The result of this paper shows that green investment in renewable energy should be done in mixed approach, where Indonesia should take into account both the implementation of green investment and the electricity’s demand and supply condition in Indonesia itself.