Journal of Social Research
Vol. 4 No. 4 (2025): Journal of Social Research

Facing Legal Uncertainty: Challenges of Corporate Law and Environmental Regulation for Sustainable Business Practices in Indonesia

Al Fajri, Riyan (Unknown)



Article Info

Publish Date
25 Mar 2025

Abstract

This study explores the challenges posed by legal uncertainty in corporate law and environmental regulations that affect sustainable business practices in Indonesia. As the country seeks to balance economic growth with environmental protection, the absence of clear guidelines for environmental, social, and governance (ESG) practices makes it difficult for businesses to adopt sustainable operations. Key issues contributing to this legal uncertainty include conflicting regulations, frequent changes to laws, and inconsistent enforcement, all of which can undermine business confidence and hinder innovation. The Omnibus Law, introduced in 2020 to simplify investment processes, has raised concerns about weakening environmental protections, complicating compliance for businesses. Using a normative research approach, this study reviews existing literature to identify and analyze the connections between various legal frameworks. The findings suggest that creating a Comprehensive Legal Framework for Sustainability, establishing a Regulatory Oversight Body, and improving stakeholder engagement are crucial steps to reduce legal uncertainty and encourage sustainable practices. By aligning environmental regulations with industrial policies, Indonesia can create a more stable legal environment that supports sustainable development.

Copyrights © 2025






Journal Info

Abbrev

ijsr

Publisher

Subject

Humanities Computer Science & IT Economics, Econometrics & Finance Education Social Sciences

Description

The Journal of Social Research is a double blind peer-reviewed academic journal and open access to social and scientific fields. The journal is published monthly by International Journal Labs. The Journal of Social Research provides a means for sustained discussion of relevant issues that fall ...