Bridging Ethical and Anti‐Ethical Norms: A Framework for Enhancing Renewable Energy Investment in Indonesia
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Abstract
This paper examines the interplay between ethical norms and anti‐ethical norms in shaping investment decisions within Indonesia’s renewable energy sector. Drawing on Mertonian ethical norms as a theoretical backbone and contrasting them with non‐market strategy perspectives, the study reviews how business ethics intersect with renewable energy policy, investment, and sustainable development in Indonesia. Using recent data from national energy statistics and empirical studies on renewable energy and ESG disclosure , the paper develops a research framework. By combining institutional theory and stakeholder theory, this study uses a theory-driven conceptual qualitative approach to provide a normative-analytical framework that clarifies how ethical standards and non-market tactics influence Indonesia's investment in renewable energy. The framework suggests that a balanced approach—integrating both ethical imperatives and pragmatic market strategies—can drive progress toward national targets such as the Golden Indonesia 2045 vision and the Paris Agreement’s zero‐carbon goals.
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This work is licensed under a Creative Commons Attribution 4.0 International License.
Copyright (c): Ova Kurniawan, Adrian Ova Triandi, Ferry Budhi Susetyo (2025)
How to Cite
Kurniawan, O., Triandi, A., & Susetyo, F. (2025). Bridging Ethical and Anti‐Ethical Norms: A Framework for Enhancing Renewable Energy Investment in Indonesia. MOTIVECTION : Journal of Mechanical, Electrical and Industrial Engineering, 7(2), 201-210. https://doi.org/10.46574/motivection.v7i2.439
References
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[12] I. Kahupi, N. Yakovleva, O. Okorie, and C. E. Hull, “Implementation of Circular Economy in a Developing Economy’s Mining Industry Using Institutional Theory: The Case of Namibia,” J Environ Manage, vol. 368, Sep. 2024, doi: 10.1016/j.jenvman.2024.122145.
[13] R. Dodds and W. Smith, “Institutional theory - Assessing longitudinal change towards sustainability in Tofino, Canada,” Journal of Destination Marketing and Management, vol. 37, Sep. 2025, doi: 10.1016/j.jdmm.2025.101001.
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[2] “HANDBOOK OF ENERGY & ECONOMIC STATISTICS OF INDONESIA 2023.”
[3] C. Chou, R. Clark, and S. O. Kimbrough, “What do firms say in reporting on impacts of climate change? An approach to monitoring ESG actions and environmental policy,” Corp Soc Responsib Environ Manag, vol. 30, no. 5, pp. 2664–2678, Sep. 2023, doi: 10.1002/csr.2509.
[4] A. Subaki and Tukirin, “The Influence of Business Ethics and Diversity on ESG Disclosure: Empirical Evidence from Indonesian Firms,” Journal of Ecohumanism, vol. 3, no. 7, pp. 1852–1871, Sep. 2024, doi: 10.62754/joe.v3i7.4339.
[5] R. Sharma, S. Chawla, V. Dagar, M. Kagzi, and A. Rao, “SDG adoption and firm risk: The impact of ESG performance, investor confidence, and agency cost,” International Review of Economics & Finance, vol. 101, p. 104205, Jul. 2025, doi: 10.1016/j.iref.2025.104205.
[6] S. Shidarta, “UCDOS (Mertonian Norms)”, doi: 10.13140/RG.2.2.17024.61447/2.
[7] N. A. Pambudi et al., “The Future of Wind Power Plants in Indonesia: Potential, Challenges, and Policies,” Feb. 01, 2025, Multidisciplinary Digital Publishing Institute (MDPI). doi: 10.3390/su17031312.
[8] K. Olushola Adeborode, M. Dora, C. Umeh, S. M. Hina, and T. Eldabi, “Leveraging organisational agility in B2B ecosystems to mitigate food waste and loss: A stakeholder perspective,” Industrial Marketing Management, vol. 125, pp. 254–271, Feb. 2025, doi: 10.1016/j.indmarman.2025.01.007.
[9] J. Gao and L. Zhang, “Environmental regulation, market power and low-carbon development of China’s coal power industry chain —Based on both strategy and return perspectives,” Energy Strategy Reviews, vol. 58, Mar. 2025, doi: 10.1016/j.esr.2025.101651.
[10] S. Suleman et al., “Drivers of trade market behavior effect on renewable energy consumption: a study of MINT (Mexico, Indonesia, Nigeria, and Turkey) economies,” Discover Sustainability, vol. 6, no. 1, Dec. 2025, doi: 10.1007/s43621-024-00715-3.
[11] S. A. M. Sebayang, M. T. Daulay, R. Maisyarah, M. W. Shihab, and A. J. Gulo, “Impact of Energy Transformation on Economic Productivity and Environmental Sustainability in Toba-Asahan, Indonesia,” International Journal of Energy Economics and Policy, vol. 15, no. 1, pp. 180–189, Dec. 2025, doi: 10.32479/ijeep.17434.
[12] I. Kahupi, N. Yakovleva, O. Okorie, and C. E. Hull, “Implementation of Circular Economy in a Developing Economy’s Mining Industry Using Institutional Theory: The Case of Namibia,” J Environ Manage, vol. 368, Sep. 2024, doi: 10.1016/j.jenvman.2024.122145.
[13] R. Dodds and W. Smith, “Institutional theory - Assessing longitudinal change towards sustainability in Tofino, Canada,” Journal of Destination Marketing and Management, vol. 37, Sep. 2025, doi: 10.1016/j.jdmm.2025.101001.
[14] A. Halimatussadiah, W. Kruger, F. Wagner, F. A. R. Afifi, R. E. G. Lufti, and L. Kitzing, “The country of perpetual potential: Why is it so difficult to procure renewable energy in Indonesia?,” Renewable and Sustainable Energy Reviews, vol. 201, Sep. 2024, doi: 10.1016/j.rser.2024.114627.
[15] A. Habib, J. Oláh, M. H. Khan, and S. Luboš, “Does integration of ESG disclosure and green financing improve firm performance: Practical applications of stakeholders theory,” Heliyon, vol. 11, no. 4, Feb. 2025, doi: 10.1016/j.heliyon.2025.e41996.
[16] M. N. Jucá, P. D. Muren, A. Valentinčič, and R. Ichev, “The impact of ESG controversies on the financial performance of firms: An analysis of industry and country clusters,” Borsa Istanbul Review, Nov. 2024, doi: 10.1016/j.bir.2024.08.001.
[17] I. Hermala, Y. Sunitiyoso, and O. Y. Sudrajad, “Green Financing Using Islamic Finance Instruments in Indonesia: A Bibliometrics and Literature Review,” International Journal of Energy Economics and Policy, vol. 15, no. 1, pp. 239–248, Dec. 2025, doi: 10.32479/ijeep.17208.