Indonesian Climate Justice Review
Vol. 2 No. 4 (2025): October, 2025

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

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



Article Info

Publish Date
31 Oct 2025

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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Journal Info

Abbrev

climate

Publisher

Subject

Description

Indonesian Climate Justice Review (e-ISSN: 3164-2284) is published by COLLEGIUM JUSTICIA INDONESIA, first published in 2024, and issued quarterly in January, April, July, and October in online format (electronic journal). It is a peer-reviewed, open-access academic journal dedicated to advancing ...