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Investor Protection Against Invalidity of Administrative Acts: Perspective of Decision 650 K/TUN/2022 and Investment Law

Law Research Review Quarterly · Vol. 12 No. 5 (2026) · pp. 3033–3067

DOI
10.15294/lrrq.v12i5.48832
ISSN
2716-3415
Published
2026-05-19
Publisher
Universitas Negeri Semarang
Language
eng

Abstract

The issuance of mining business licenses that conflict with environmental protection regulations often leads to cancellation by the court, which directly disrupts the legal certainty of investments. This article aims to examine the legal protection for investors resulting from the invalidity of administrative acts, focusing on the analysis of Supreme Court Decision Number 650 K/TUN/2022 concerning the cancellation of the Approval for the Upgrade to Operation Production Stage of PT Tambang Mas Sangihe (PT TMS). Employing a normative legal research method with statute and case approaches, this article unravels the problematic conflict between the principle of investment certainty and ecological preservation. The study reveals that PT TMS's license was annulled due to proven substantive defects, specifically violating the prohibition against massive mining on small islands as stipulated in Article 26A of the Law on the Management of Coastal Areas and Small Islands (PWP3K). While this decision represents a victory for environmental conservation, the negligence of the State Administrative Official in issuing a fundamentally flawed license has undermined the guarantee of investor protection and legal certainty under the Investment Law. From the perspective of legal doctrine, the issuance of such a juridically defective license constitutes an Unlawful Act by the Government (Onrechtmatige Overheidsdaad). Therefore, to protect the legitimate expectations of good-faith investors holding a Contract of Work, repressive legal protection through a mechanism of claiming compensation against the state becomes an essential instrument. This article recommends the necessity for strict cross-sectoral licensing synchronization to prevent similar administrative failures that could detrimentally affect the national investment climate.

Keywords

Collaboration network of the authors

35 authors · 84 co-authorship links

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  • Ministry of Research, Technology and Higher Education
  • Affiliation unknown
  • Different organisations
  • Same organisation
  • Affiliation unknown
  • Thicker line = more joint articles · bigger circle = more articles
Show as table
Co-authorOrganisationJoint articles
Rahayu Fery AnitasariAffiliation unknown7
Dina Silvia PuteriAffiliation unknown4
Rindia Fanny KusmaningtyasAffiliation unknown2
Ubaidillah KamalAffiliation unknown2
Aprila NiravitaAffiliation unknown2
Anak Agung Ayu Diah SetyawatiAffiliation unknown2
Mochammad Rizky Maulana MaulanaAffiliation unknown2
Arif HidayatAffiliation unknown1
Dhita Widya PutriMinistry of Research, Technology and Higher Education1
Asrul Ibrahim NurAffiliation unknown1
Arif HidayatAffiliation unknown1
Asrul Ibrahim Nur NurAffiliation unknown1
Mayzura Kamila SukmaAffiliation unknown1
Figo IqbalAffiliation unknown1
Nathanael Bayu Ajie PratomoAffiliation unknown1
Tegar Islami PutraAffiliation unknown1
Nurul FibriantiAffiliation unknown1
Rini FidiyaniAffiliation unknown1
Rizky Andeza PrasetyaAffiliation unknown1
Ayuk AnggraeniAffiliation unknown1
Aminatullahi Aliyu JibrilAffiliation unknown1
Septian Akbar Noor Wahyu HardiAffiliation unknown1
Dinar Yana HastariAffiliation unknown1
Zamzammaimatul Zalfa LailaAffiliation unknown1
Kukuh Satria WiratamaAffiliation unknown1
Ridwan ArifinAffiliation unknown1
Ni Nyoman Putri Buana Ariani SaraswatiAffiliation unknown1
Jihan RafiqAffiliation unknown1
Andi Rangga PerdanaAffiliation unknown1
Ratna LaniatiAffiliation unknown1
Bastian Chris DarenAffiliation unknown1
Mia Pitaloka Krisna PutriAffiliation unknown1

Affiliations come from OpenAlex; journal OAI-PMH metadata carries none. Authors without an OpenAlex ID are matched by name, which can merge or split people.

Metadata source: OAI-PMH (metadata jurnal) https://journal.unnes.ac.id/journals/snh/oai, first harvested 6 Nov 2026, last seen 8 Nov 2026.
Original metadata (oai_dc) 
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	<dc:title xml:lang="en">Investor Protection Against Invalidity of Administrative Acts: Perspective of Decision 650 K/TUN/2022 and Investment Law</dc:title>
	<dc:creator xml:lang="en">Mochammad Rizky Maulana</dc:creator>
	<dc:creator xml:lang="en">Sang Ayu Putu Rahayu</dc:creator>
	<dc:creator xml:lang="en">Mayzura Kamila Sukma</dc:creator>
	<dc:subject xml:lang="en">Administrative Defect, Investor Protection, Legal Certainty, Onrechtmatige Overheidsdaad.</dc:subject>
	<dc:description xml:lang="en">The issuance of mining business licenses that conflict with environmental protection regulations often leads to cancellation by the court, which directly disrupts the legal certainty of investments. This article aims to examine the legal protection for investors resulting from the invalidity of administrative acts, focusing on the analysis of Supreme Court Decision Number 650 K/TUN/2022 concerning the cancellation of the Approval for the Upgrade to Operation Production Stage of PT Tambang Mas Sangihe (PT TMS). Employing a normative legal research method with statute and case approaches, this article unravels the problematic conflict between the principle of investment certainty and ecological preservation. The study reveals that PT TMS's license was annulled due to proven substantive defects, specifically violating the prohibition against massive mining on small islands as stipulated in Article 26A of the Law on the Management of Coastal Areas and Small Islands (PWP3K). While this decision represents a victory for environmental conservation, the negligence of the State Administrative Official in issuing a fundamentally flawed license has undermined the guarantee of investor protection and legal certainty under the Investment Law. From the perspective of legal doctrine, the issuance of such a juridically defective license constitutes an Unlawful Act by the Government (Onrechtmatige Overheidsdaad). Therefore, to protect the legitimate expectations of good-faith investors holding a Contract of Work, repressive legal protection through a mechanism of claiming compensation against the state becomes an essential instrument. This article recommends the necessity for strict cross-sectoral licensing synchronization to prevent similar administrative failures that could detrimentally affect the national investment climate.
 </dc:description>
	<dc:publisher xml:lang="en">Universitas Negeri Semarang</dc:publisher>
	<dc:date>2026-05-19</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
	<dc:type>info:eu-repo/semantics/publishedVersion</dc:type>
	<dc:format>application/pdf</dc:format>
	<dc:identifier>https://journal.unnes.ac.id/journals/snh/article/view/48832</dc:identifier>
	<dc:identifier>10.15294/lrrq.v12i5.48832</dc:identifier>
	<dc:source xml:lang="en">Law Research Review Quarterly; Vol. 12 No. 5 (2026): Special Edition Part 1; 3033-3067 </dc:source>
	<dc:source>2716-3415</dc:source>
	<dc:source>10.15294/lrrq.v12i5</dc:source>
	<dc:language>eng</dc:language>
	<dc:relation>https://journal.unnes.ac.id/journals/snh/article/view/48832/9916</dc:relation>
	<dc:rights xml:lang="en">Copyright (c) 2026 Law Research Review Quarterly</dc:rights>
</oai_dc:dc>