Journal of State Public Policy (JSPP)
Vol. 1 No. 3 (2026): Journal of State Public Policy

Balancing Stabilization Clauses and Technology Transfer in Smart City Joint Venture Contracts

Marentino Narade (Faculty of Law, University of Indonesia, Indonesia)



Article Info

Publish Date
31 May 2026

Abstract

The massive development of smart city infrastructure strategically drives developing nations to utilize foreign direct investment flows through joint venture contracts. However, the implementation of absolute stabilization clauses systematically freezes the domestic regulatory space. This study specifically aims to analyze the clash of norms between stabilization clauses and the host state's right to regulate mandatory technology transfer. The research employs a normative legal methodology using statutory and conceptual approaches rooted in the Facilitation 2.0 doctrine. The results prove that comprehensive deregulation of technology transfer instruments to increase foreign investment volume inadvertently creates long-term technological dependency for developing nations. Joint venture contracts lacking coercive regulatory protections surrender technology transfer completely to a highly asymmetric freedom of contract regime. Therefore, this research proposes a comprehensive contractual reconstruction model by inserting explicit public policy carve-outs. This legal reengineering is essential to balance commercial certainty with national digital sovereignty for sustainable smart urban governance.

Copyrights © 2026






Journal Info

Abbrev

jspp

Publisher

Subject

Description

Journal of State Public Policy (JSPP), published triannually (April, August, and December) by Cerdas Pedia, is a peer-reviewed, open-access academic journal dedicated to the rigorous analysis of public policy formulation, state administration, and legal regulatory frameworks. Serving as a critical ...