The green economic transition introduces carbon credits as foreign direct investment objects. However, the Indonesian investment law regime suffers from a severe normative vacuum due to the absence of carbon credit qualifications as intangible assets. This doctrinal research is operationalized utilizing statutory, conceptual, and comparative approaches to untangle this legal standing issue. The results demonstrate that the lack of property rights recognition over carbon assets triggers significant legal uncertainty for foreign investors. This condition creates high risks regarding indirect expropriation threats without compensation and severe ambiguity in cross-border capital repatriation procedures. The systemic implications of this regulatory dissonance directly place Indonesian jurisdiction in a vulnerable position against international arbitration dispute threats. Foreign tribunals possess potential to interpret these entities as legitimate protected assets. Conclusively, filling the legal vacuum through statutory requalification of carbon units as investment objects constitutes an absolute urgency to guarantee investment certainty while mitigating state jurisdictional losses.
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