This study aims to examine the policy on natural resource management from the perspectives of economic principles and local wisdom. It adopts a normative juridical method with a descriptive-analytical approach to explore how state policies should balance economic development with environmental sustainability. The findings reveal that the exploitation of natural resources cannot be justified solely by free-market economic logic, as this may overlook the constitutional mandate to ensure the greatest benefit for the people. Local wisdom, rooted in the traditions and knowledge of indigenous communities, plays a vital role in sustainable resource governance and environmental protection. Article 18B paragraph (2) of the 1945 Constitution of the Republic of Indonesia guarantees the recognition and respect of customary law communities and their local wisdom. This research underscores the importance of policies that integrate legal norms, economic considerations, and sociocultural values.
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