<![CDATA[The development of carbon markets has transformed forest ecosystem services into economically tradable assets, while raising legal uncertainty over carbon rights in areas overlapping with customary territories. This study examines normative conflicts and competing interests arising from the proposed carbon-trading activities involving PT Perkasa Bumi Hijau Unit I and the Moi Indigenous People in the Salawati Islands, and formulates an equitable dispute-resolution framework. Employing normative legal research, the study applies statutory, case, conceptual, and analytical approaches to relevant constitutional provisions, judicial decisions, investment regulations, carbon-governance rules, scholarly literature, institutional reports, and advocacy documents. The findings show that carbon-rights disputes cannot be understood merely as licensing conflicts, as they involve the interaction between state authority, investment certainty, customary rights, participatory rights, and the distribution of economic benefits. Using Roscoe Pound’s Interest Theory, this study proposes a fair carbon governance model comprising recognition of Indigenous Peoples as principal rights-holders, meaningful FPIC/PADI, transparent benefit sharing, participatory zoning, and an independent grievance mechanism. Its novelty lies in integrating Interest Theory with carbon-rights governance to link legal status, consent, and distributive justice in resolving disputes involving customary territories.]]>
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