REDESIGNING INSTITUTIONAL LAW FOR GREEN INVESTMENT TRANSFORMATION IN INDONESIA: INTEGRATING NZE, GREEN CONSTITUTION, AND PROPHETIC LAW

Abstract

Climate change and the urgency of achieving Net Zero Emission (NZE) require Indonesia to establish a coherent legal and institutional framework for sustainable green investment. However, the current regulatory landscape remains fragmented across ministries, resulting in legal uncertainty and overlapping mandates that hinder effective implementation. This article aims to formulate a grand design of state institutional law that consolidates regulatory coherence and institutional coordination in advancing Indonesia’s green economy. The study applies a qualitative legal approach by interpreting constitutional provisions, statutory law, and ministerial regulations through constitutional hermeneutics and value-based jurisprudence. The framework integrates the Green Constitution—which elevates environmental sustainability as a constitutional mandate—and Prophetic Law, which contributes normative values of justice, stewardship, and transcendence to guide institutional reform. The findings reveal that fragmented licensing schemes and regulatory overlaps constitute major barriers for investors, undermining the achievement of NZE. By proposing a one-gate licensing system supported by an omnibus law approach, the study outlines a model that simplifies regulation, enhances institutional accountability, and harmonizes green investment policies with Indonesia’s Nationally Determined Contribution (NDC). By bridging constitutional environmentalism with prophetic jurisprudence to design an institutional roadmap that is both normatively legitimate and practically implementable, this paper demonstrates originality in its approach to the issues at hand. The proposed grand design provides a clear legal and governance pathway for Indonesia to accelerate its transition toward a sustainable green economy and fulfil its global climate commitments.