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Journal : sasi

Customary Law as a Pathway to Social Justice: A Comparative Analysis of Corporate Social Responsibility and Performance Requirements in Indonesian and Vietnamese Foreign Investment Frameworks Arifin, Miftah; Arifin, Zainal; Widiastuti, Anna; Ismanto, Hadi; Giang, Vu Le
SASI Volume 32 Issue 1, March 2026
Publisher : Faculty of Law, Universitas Pattimura

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.47268/sasi.v32i1.3425

Abstract

Introduction: Economic globalization has strengthened foreign investment flows in developing countries such as Indonesia and Vietnam. However, investment policy orientations that overemphasize economic efficiency often ignore social justice for local communities. This inequality raises the need to revisit the legal framework that governs the relationship between foreign investors and the recipient community. Customary law is seen as a source of values and moral principles that can strengthen social legitimacy in the practice of foreign direct investment (FDI).Purposes of the Research:  This study aims to analyze how customary law can play a role in restoring social justice through the implementation of corporate social responsibility (CSR) and performance requirements in foreign investment, by comparing the legal frameworks of Indonesia and Vietnam, this study seeks to find a model of customary law integration that is able to balance economic interests with the social and cultural values of local communities.Methods of the Research: This study uses a normative-comparative legal approach by analyzing laws and regulations, policy documents, and CSR implementation practices in Indonesia and Vietnam. Data was collected through literature studies and content analysis of various primary and secondary legal sources. A comparative approach is used to identify similarities and differences in the application of customary law as the basis for foreign investment policies in both countries.Results of the Research: The results of the study show that Indonesia has adopted customary law principles, such as mutual cooperation and social justice, within the legal framework of CSR and investment performance requirements. In contrast, Vietnam still emphasizes socialist state policies without explicit recognition of local customary law values. The integration of customary law has been proven to strengthen the social legitimacy and sustainability of investments, as it fosters corporate social responsibility that is in line with community values and promotes more equitable and inclusive development.
Co-Authors A. Aisyah Ahmad Maujuhan Syah Akhmad Abdul Qofur Alfendo Andrian Nofian Amanatur Rohmah Rofi’ Indayanti Anna Widiastuti Anna Widiastuti Aries Kurniawan Aulia Rahmi, Vembri Bambang Budi Wiyono Bariroh, Hilmatul Bradford, Snyder Cindi Ferdiani Delfian Zaman Durrotul Mustagfiroh Eko Nur Fuad Endah Wahyuningsih, Sri Fadlilah, Risyda Dzul Faizah, Mubtadiatul Fiana, Elma Fiana Firmawan, Digo Fitria, Aini Salisul Fitriani Fitriani Fransiska, Welda Galih Dani Septiyan Rahayu Gaol, Eva Lumban Giang, Vu Le Gunarto Gunarto Hakim, Mohamad Zulman Herawati, Henny Hidhayah, Anysha Nur Indriya Safitri Indro Kirono Kholifah, Nanda Nur Widya Ummi Kurniawan, Roykhan Dwi Lestari, Khofifah Ayu Miftah Arifin Mirawati Mirawati Mohammad Yunies Edward Muhammad Ade Kurnia Harahap Muhammad Aufa Muhammad Azizi Muhammad Husni Tamrin Muhammad Syaifur Rohman Musyafa' Musyafa' Nahtadiya, Rihla Nanda Oktasavira Nanda Oktasavira Nikmah, Rika Izzatun Nisa Ihlasul Amaiyah Noor Arifin Nurhayati Nurhayati Nurin Zulianti Nurrochim, Ilma Lutfi Nurul Murtadho Oktavia, Afriska Pramudia, Ahmad Irfan Prasetyo, Wahyu Adi Puja Aunun Fauziah Punaji Setyosari Putri, Fina Salmah Rahman, Ahmad Auliya Rahmat Arif Syaifudin Rahmi, Vembri Aulia Respati, Putra Panji Risma Rahmawati Ristitriani, Nike Sabira, Elmira Talita Sabira Saefullah, Yusuf Sari, Veronica Aliya Shalihul Aziz Widya Irawan Sholihah, Vina Mar'atus Siddiqa, Heidi Silalahi, Pristanto Silviana Pebruary Sisno Riyoko Sitanggang, Evi Linda Siti Sarah, Siti Sri Hartanti Sri Wulandari Syafitri, Adiarni Decintya Tantri Pratiwi Tohir Diman, Tohir Ulfia Nabila Istiqomah Utami, Amelia Tri Vinda Yuni Prahastia Yuni Lestari Zainal Arifin