Indigenous Rights and Economic Justice in the Palm Oil Industry: Legal and Ethical Considerations in Indonesia

Abstract

This paper explores the legal and ethical dimensions of the palm oil industry in Indonesia, focusing on the economic justice issues faced by indigenous communities whose land rights are undermined by palm oil plantations. Indonesia is one of the world’s largest producers of palm oil, but the expansion of palm oil plantations has led to significant environmental degradation and land dispossession, particularly among indigenous populations. The study examines the legal frameworks surrounding land rights in Indonesia, evaluating how existing laws either protect or undermine indigenous land claims in the context of industrial development. It also considers the role of multinational corporations in perpetuating land conflicts, using case studies from regions like Papua and Kalimantan where indigenous groups have faced displacement in favor of palm oil production. The paper critically analyzes the ethical implications of palm oil production, particularly regarding the balance between economic growth and the preservation of indigenous rights and livelihoods. Drawing on legal, environmental, and human rights perspectives, the paper argues that Indonesia’s palm oil industry, while driving economic growth, does so at the expense of social justice and sustainability. The study concludes with policy recommendations aimed at improving the legal protections for indigenous land rights, promoting ethical palm oil production, and fostering more sustainable and just economic development.