The Green Economy vs. Indigenous Rights: A Study of the Indonesian Investment Law and Its Impact on Climate Justice

Authors

  • Muhammad Fadhil Universitas Airlangga Author
  • Siti Nur Aisyah Universitas Trisakti Author
  • Chong Wei Jin Singapore Management University Author
  • Hassan Ali Universiti Malaysia Sarawak Author
  • Raudhah Ariffin Brunei University College of Management Author

Keywords:

Green Economy, Indigenous Rights, Climate Justice, Investment Law, Indonesia

Abstract

This research investigates the tension between the green economy agenda and indigenous rights in Indonesia, specifically through the lens of the Indonesian Investment Law (UU No. 25/2007) and its implications for climate justice. As Indonesia pushes for a transition toward a greener economy, the government has prioritized large-scale investments in renewable energy, infrastructure, and sustainable industries. However, these developments often intersect with the territories and livelihoods of indigenous communities, raising concerns about land rights, displacement, and the erosion of cultural heritage. The study critically analyzes how the Indonesian Investment Law, designed to attract foreign and domestic investments, interacts with environmental and social policies affecting indigenous peoples. Through a combination of legal analysis, field surveys, and interviews with indigenous leaders, environmental activists, and policymakers, this research examines the practical and legal challenges indigenous communities face in securing land rights amidst the push for green economic development. The findings highlight a fundamental conflict between the promotion of green economic policies and the protection of indigenous rights, with many communities reporting limited consultation, inadequate compensation, and negative environmental impacts resulting from large-scale green projects. The study argues that climate justice cannot be fully realized without integrating indigenous rights into the green economy framework, offering policy recommendations to ensure that indigenous voices are included in climate adaptation and sustainable development strategies. This research contributes to the broader discourse on balancing economic growth, environmental protection, and social equity in Indonesia’s climate policy.

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2025-10-30

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The Green Economy vs. Indigenous Rights: A Study of the Indonesian Investment Law and Its Impact on Climate Justice. (2025). Indonesian Climate Justice Review, 2(4), 1-47. https://journal.perhaki.org/index.php/climate/article/view/40