The Rempang Eco City Dilemma: Reorienting State and Corporate Responsibilities Based on Environmental, Social, and Governance Principles

Authors

  • Prasetyo Adi Nugroho Faculty of Law, Universitas Indonesia, Indonesia

DOI:

https://doi.org/10.30641/ham.2026.17.173-188

Keywords:

environmental social governance, and human rights, local transmigration, rempang eco city, resettlement

Abstract

Environmental Social Governance (ESG) investments have entered a phase of rapid development globally, forcing a paradigm shift in how corporate activities affect local communities and their ecosystems. The revocation of the National Strategic Project (PSN) status of Rempang Eco City under Presidential Regulation Number 12 of 2025 has created a significant legal transition and a regulatory vacuum regarding land acquisition and resettlement responsibilities. This study aims to analyze the legal implications of the post-PSN resettlement schemes, specifically focusing on the government's "Local Transmigration" policy, and to reconstruct a human rights-based corporate-state responsibility model using the ESG framework. This study employs a doctrinal (normative) legal research method combined with a descriptive-analytical qualitative research design based on John W. Creswell’s theoretical framework, utilizing secondary legal sources and statutory synchronization. The study finds that the post-PSN transition shifts the land dispute back to a pure private law corridor, invalidating coercive state acquisition under the guise of public interest. The proposed "Local Transmigration" program contains an administrative fallacy and risks violating the ecological sovereignty of traditional fisherfolk. Under OJK Regulation Number 51/POJK.03/2017, the ESG framework serves as a binding legal bridge that forces the concession holder (PT MEG) to internalize human rights due diligence (HRDD) to secure its social license to operate. Human rights mainstreaming requires the integration of private corporate liabilities into the state's public protection framework. The Ministry of Transmigration should evaluate the local transmigration program and prioritize fair compensation and meaningful consultation under Law Number 2 of 2012.

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Published

11/02/2026

How to Cite

“The Rempang Eco City Dilemma: Reorienting State and Corporate Responsibilities Based on Environmental, Social, and Governance Principles”. Jurnal HAM 17, no. 2 (November 2, 2026): 173–188. Accessed November 5, 2026. https://www.lawpolicyjournal.id/index.php/ham/article/view/5852.

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