The role of law in economic development: To develop a special economic zone in order to build a national and regional Economy

Abstract

Purpose - The purpose of this paper is to provide legal certainty in developing a special economic zone (SEZ) in order to build the national and regional economy. Besides that, an other purpose is to push the Central Government, the Provincial Government, the Regional Goverment, and the Management Institution to complete the infrastucture and also harmonize the policies and regulations regarding the SEZ in Indonesia, especially in Sei Mangkei. Design/Methodology/Approach - The research method that authors used is the sociological legal research and the normative legal research which approach the economic development in social economic zone in Sei Mangkei, the issues that happened in reality, and they analyze the related regulation in SEZ. Findings - The result thus obtained shows that legal certainty has not been realized completely which caused undevelopment of SEZ in Sei Mangkei. Besides the legal certainty factor, the unfinished infrastructure also caused the undevelopment, even though according to Act number 39 of 2009 regarding SEZ, an operated SEZ has fulfilled the needs and appropriateness of the infrastructure. In reality, Sei Mangkei SEZ, which has been operational, is not supported by the appropriateness of the infrastructure such as the port, train rail, hazardous waste material management facility, final disposal vessel, and also the issue of electricity and gas. Practical Implications - This result can help Central Government or Provincial Government in establishing the regulations that can provide the legal certainty in developing the SEZ in Sei Mangkei. Originality/Value - In addition to increasing the role of law in economic development understanding, this paper can be of legal and economic relevance.