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Indonesia Law Review

Publisher:
—
ISSN:
2088-8430
Category:
LAW
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Latest articles

Legal Perspectives on Information Asymmetry in Investor Selection for Public-Private Partnership Projects Under O&M Contract

2025-08-31

Nhu Thi Thuy Cao et al.

Information asymmetry is a common barrier in selecting investors in the form of Public-Private Partnerships (PPPs), especially in the Operation and Maintenance (O&M) contracts. This issue arises from the natural information advantage of the construction contractor and the incumbent investor in construction and operation. Although it does not stem from misconduct, such asymmetry still affects competitiveness and selection efficiency. The article analyzes the causes and legal consequences of this phenomenon through a comparative review of Vietnamese and Canadian legal frameworks while also assessing selected projects. The research methodology includes theoretical analysis, legal comparison, and a review of practical literature. The findings highlight the need for regulatory intervention to ensure fair competition, with the key solution being the establishment of obligations to share project data for potential investors.

RELOCATING INCLUSIONARY HOUSING OBLIGATIONS TO THE NEW CAPITAL NUSANTARA: LEGAL AND POLICY IMPLICATIONS

2025-08-31

Muhammad Ilham Hermawan et al.

The philosophical meaning of balanced housing lies in achieving a harmonious and equitable life among various social strata. To realize this philosophical essence, regulatory engineering is required, aimed at fulfilling the goals of balanced housing. The obligation for balanced housing is theoretically known in the literature of several countries as an inclusionary housing policy . Triggered by the need for residential development in the new capital city (IKN), the Government has "relocated" the previously unfulfilled balanced housing obligation to IKN. The IKN Law explicitly regulates “exceptions to the provisions of legislation in the field of housing and residential areas.” There are three (3) substantive exceptions. First, developers or business actors may fulfill their balanced housing obligation in the Capital City of Nusantara within a specific timeframe. Second, the obligation may be carried out in accordance with the Detailed Spatial Plan of the Capital City of Nusantara. Third, the law affirms the provision of incentives for housing developers who implement the balanced housing obligation in the new capital. This policy shift requires follow-up regulations addressing its implications for the local governments of the origin areas: (1) the form of incentives to be received by the originating local governments; (2) conditions that must be met in the originating areas as prerequisites for relocating the balanced housing obligation to IKN; and (3) cooperation and partnership mechanisms between the IKN Authority (OIKN) and regional governments.

Exclusion within Inclusive Education Policy: The Challenges Facing Urban Refugees in Accessing Education in Thailand

2025-03-17

MST UMME HABIBA FAHMINA KARIM Dr.

Despite Thailand’s adoption of the Education for All policy in 2005, which grants all children, including refugees, access to free public education, refugee children largely remain excluded. Camp-based refugees attend informal, unrecognized education programs, while urban refugee children are categorised with migrant children in enrollment data. In 2023, only 34% of legal migrant children were enrolled in public schools, while refugees—often classified as "illegal migrants"—are either left out or attend unofficial community schools. This study examines the gap between policy and practice by exploring the experiences of urban refugees and perspectives of key stakeholders, including refugees, government agencies, and humanitarian organizations. Using an analytical framework, it investigates access to public education, service providers’ perceptions, and the implementation of inclusive education. The research employs a systematic literature review, focusing on three components: data collection from existing literature, analysis of educational barriers for urban refugees, and evaluation of policy implementation challenges. The findings highlight issues of political exclusion, policy misalignment, and practical obstacles in integrating refugees into formal education. By identifying tensions between education and refugee policies in Thailand, this study contributes to both academic research and policy discussions. It advocates for a comprehensive policy review to ensure refugees have access to formal, recognized education, aligning with Thailand’s commitment to Education for All.

THE URGENCY OF ARTIFICIAL INTELLIGENCE CODE OF ETHICS

2025-03-17

Tundjung Herning Sitabuana et al.

The era of artificial intelligence has become a characteristic of industrial era 5.0 which has been used in various aspects. Potential economic value of AI has driven various forms of AI innovation development. Exploration of AI tends to override negative impacts of such developments. The emergence of ethical issues with presence of AI encourages the need for a law-based approach to establishing ethical standards to protect entire Indonesian nation. Therefore, this research was conducted to examine urgency for an AI code of ethics. This paper will normatively describe data qualitatively to answer urgency and development of AI code of ethics in doctrinal and regulative contexts, including comparisons of countries that apply ethical code. Phenomenon of emergence of AI has given rise to systemic ethical problems that are both incidental and existential related to humans. Due to disruptive threat of AI, it encourages countries to formulate ethical standards regulatory models. European Union and China have AI ethical guidelines within their legal frameworks although their characteristics differ. Meanwhile, Indonesian legal system doesn’t yet have tools that specifically regulate AI ethics. Weaknesses in regulating AI related to scope of AI, legal harmonization, and weak government commitment and competence. To regulate AI Ethics substantially and formally can be formulated in many variants based on categorization of ethical principles nature, implementation of ethical principles, forming institutions, nature and type of regulations, normative power, and scope of AI impact. New legal instruments are needed based on this categorization.

QUASI-VERTICAL INTEGRATION MODEL IN PARTNERSHIP OF SMES (SMALL MEDIUM ENTERPRISES) AND THE ROLE OF COMPETITION COMMISSION IN EU AND INDONESIA

2025-03-15

Yayan Hernayanto et al.

Partnerships between large and small companies should not be imagined as David and Goliath, enemies of each other. However, partnerships between large and small business actors are a mutually beneficial synergy. Partnerships with Small and Medium Enterprises (SMEs) are not charity activities that prevent them from growing strongly. Guidance and assistance need to be provided so that they grow with a strong foundation. Both parties must agree to a fair transaction scheme, trade terms, and clauses that sustain this partnership and not cause SMEs to go bankrupt. Quasi-Vertical Integration is a model for conducting transactions in the manufacturing industry. This article is compiled using a doctrinal research method, namely analyzing the implementation of partnership regulations in Indonesia in the context of partnerships with the Automotive Industry (OEM), as well as examining the role of the Competition Supervisory Commission (KPPU) in Indonesia, which has been given the authority to oversee this partnership. More specifically, this article discusses and presents several points: first, how good partnership protection in Indonesia and the EU protects SME businesses; second, how the partnership pattern of SMEs in the automotive sector between Quasi-Vertical integration and quasi-rent is implemented as Vertical Integration; Finally, how the KPPU in Indonesia uses its authority in considering supervising partnerships and its comparison with the EU. As a conclusion in this article, mandatory partnerships in Indonesia are implemented based on the OSS (Online Single Submission) requirements in the registration or licensing of investment. Voluntary Partnerships are agreements between Parties that are equal with the principle of mutual need and mutual benefit. The partnership pattern of SMEs in the automotive sector between Quasi-Vertical integration and quasi rent is implemented as Vertical Integration which is not prohibited by Indonesian competition law. KPPU must encourage voluntary partnerships by Business Actors and SMEs as a more appropriate approach to developing Partnerships