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September 30, 20250 citationsOpen Access

Analysis of Sustainable Investment Regulation For Indonesia’s 3T Regions: Underdeveloped, Frontier, and Outermost

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PSPutri Ayu SutrisnoSZShofiy ZulfahRNRinitami Njatrijani

Key Points

  • Investment laws need proper coordination among government agencies to overcome infrastructure challenges in 3T regions.
  • Geographical diversity of Indonesia affects human resource quality, complicating sustainable investment efforts.
  • Investment in 3T regions can create job opportunities and promote social equality in underdeveloped areas.
  • Sustainable investment regulations must focus on regional potential to effectively address welfare inequality.

Abstract

Abstract Investment in a country aims to accelerate economic development. Indonesia is an archipelagic nation, and several regions have already advanced in development. In contrast, others are inadequate in terms of infrastructure and welfare levels, often referred to as 3T regions (Underdeveloped, Frontier, and Outermost). This study intends to analyse the regulation of continuous investment. Additionally, it aims to recognize the main challenges faced in sustainable investment in the 3T regions and the roles of the government, private sector, and local communities in supporting the sustainable investment ecosystem in these areas. The research method used is normative juridical, employing a statutory approach. The research results indicate that 3T regions have several challenges due to the difficulty of building facilities and infrastructure in these regions. This is because the geographical and topographical conditions of Indonesia, which are very diverse and have an impact on the low quality of human resources both in terms of education and skills. In addition, the lack of access or roads to reach the 3T region incurs a lot of costs in investment development. To maximize the effectiveness of the Investment Law implementation, coordination is needed among government agencies, other institutions, and the private sector. Through capital investment, opportunities will be created by focusing on regional potential, promoting labor absorption, and investing in underdeveloped areas and regions with limited infrastructure. As a result, equality is achieved, and welfare inequality in society is reduced.

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Cite This Study

Sutrisno et al. (2025) studied this question.

synapsesocial.com/papers/68dc1e438a7d58c25ebb22e9https://doi.org/10.1088/1755-1315/1537/1/012035
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