Between Efficiency and Sustainability: Debottlenecking, FDI Screening, and ESG Integration in Indonesia, the European Union, and the AfCFTA

Authors

  • Hisyam bin Hamid Albandiyi Department of Islamic Family Law, Institut Miftahul Huda Al Azhar, Banjar, Doctoral Program in Islamic Law, Universitas Islam Negeri Sumatera Utara (UINSU) Medan, Indonesia., Indonesia https://orcid.org/0000-0001-6709-1195
  • Bakari Arabi Department of Law and Criminology, Royal Docks School of Business and Law, University of East London, United Kingdom
  • Imron Hamzah bin Syuhud Al-Ahgaff University, Yemen
  • Padhol bin Tukimin bin Sandari bin Kartawi Institut Miftahul Huda Al Azhar, Banjar, Indonesia
  • Moh. Imam Jalmo Panuntun bin Abdullah Makkah Representative Office, Rindu Baitullah Tours & Travel, Makkah, Saudi Arabia
  • Adamu Abubakar Muhammad Federal University of Kashere, Gombe State, Nigeria

DOI:

https://doi.org/10.15575/vh.v8i1.56450

Abstract

Sustainable investment governance has emerged as a critical imperative in contemporary international economic law, addressing regulatory fragmentation, legal uncertainty, and the integration of environmental, social, and governance (ESG) principles into investment regimes. This study examines the harmonisation of sustainable investment legal frameworks through debottlenecking mechanisms from a three-continent comparative perspective: Asia (Indonesia), Europe (the European Union), and Africa (the AfCFTA framework). Using a normative legal research methodology that draws on statutory, conceptual, and comparative approaches, the analysis evaluates primary legal instruments and secondary doctrines to assess legal coherence, regulatory efficiency, and institutional coordination. The findings reveal distinct yet convergent regional trajectories: Indonesia advances investment facilitation by streamlining regulations and strengthening institutional coordination; the European Union reinforces its framework via foreign direct investment (FDI) screening and green transition policies prioritising economic security; and Africa, under the AfCFTA, fosters a sustainability-oriented regime incorporating ESG obligations with developmental priorities. Despite normative and institutional variations, all three regions exhibit a gradual convergence toward harmonised governance. The study concludes that effective harmonisation necessitates regulatory coherence, cross-jurisdictional policy alignment, and responsive mechanisms to resolve investment bottlenecks within a sustainability-oriented legal framework.

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Published

2026-10-21

How to Cite

Albandiyi, H. bin H., Arabi, B., Hamzah bin Syuhud, I., bin Tukimin bin Sandari bin Kartawi, P., Jalmo Panuntun bin Abdullah, M. I., & Abubakar Muhammad, A. (2026). Between Efficiency and Sustainability: Debottlenecking, FDI Screening, and ESG Integration in Indonesia, the European Union, and the AfCFTA. VARIA HUKUM, 8(1), 41–66. https://doi.org/10.15575/vh.v8i1.56450

Issue

Vol. 8 No. 1 (2026): VARIA HUKUM: Jurnal Forum Studi Hukum dan Kemasyarakatan

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Copyright (c) 2026 Hisyam bin Hamid Albandiyi, Bakari Arabi, Imron Hamzah bin Syuhud, Padhol bin Tukimin bin Sandari bin Kartawi, Moh. Imam Jalmo Panuntun bin Abdullah, Adamu Abubakar Muhammad

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