Smart: Journal of Criminal Law Review and Analysis
Vol. 1 No. 3 (2026): Smart: Journal of Criminal Law Review and Analysis (SCrim)

PSA Stabilization Clauses Limiting State Ius Imperium: An International Investment Law Perspective

Rizky Akbar (University of Indonesia)



Article Info

Publish Date
21 Aug 2026

Abstract

International investment agreements utilizing stabilization clauses consistently paralyze sovereign regulatory authority, creating a systemic regulatory chill that fatally obstructs the prosecution of transnational corporate crimes and massive ecological damages. This doctrinal legal research evaluated the constitutional boundaries of state police powers against the contractual immunity inherently provided by modern extractive contracts. The detailed analysis demonstrated that rigid freezing mechanisms illegitimately transform commercial risk mitigation into an absolute sovereign shield, effectively neutralizing contemporary penal jurisdiction over multinational corporations. The central thesis firmly maintains that commercial expectations can never legally justify ecological impunity or systemic corruption. To completely dismantle this structural deadlock, host states must fundamentally redesign production sharing agreements by systematically integrating an explicit penal-environmental carve-out provision. This original conceptualization establishes a progressive normative boundary that rigorously insulates domestic penal enforcement from international arbitration interference, prescriptively empowering global legal systems to secure profound ecological justice without violating any legitimate foreign investments.

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Journal Info

Abbrev

SCrim

Publisher

Subject

Description

Smart: Journal of Criminal Law Review and Analysis (SCrim) is a rigorous, peer-reviewed academic forum dedicated to the comprehensive examination of substantive and procedural criminal law, penal policy, and the broader intersections of criminal justice and contemporary society. Published ...