Economic right justice for indigenous peoples in carbon trading in the forestry sector in Indonesia

Hidayah, Khoirul ORCID: https://orcid.org/0000-0003-1218-1411, Musataklima, Musataklima, Bachri, Syabbul ORCID: https://orcid.org/0000-0002-1687-2087, Fidhayanti, Dwi and Ramadhita, Ramadhita (2026) Economic right justice for indigenous peoples in carbon trading in the forestry sector in Indonesia. Jurisdictie: Jurnal Hukum dan Syariah, 17 (1). pp. 37-70. ISSN 2528338

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Abstract

Carbon trading in the forestry sector is vital for reducing greenhouse gas emissions to the targeted level and for implementing a green economy in Indonesia. Within this scope, indigenous peoples hold a strategic position, as major carbon-potential forests are located in areas that they cultivate and preserve. Although several regulations have recognised the involvement of indigenous peoples in carbon trading, its implementation still faces issues over economic rights justice. Departing from this issue, this research analyses the standing of indigenous peoples in carbon trading, particularly in the forestry sector, identifies economic rights justice issues, and formulates a reinforcement model from the perspective of green economy law. Using a normative method, supported by statutory, conceptual, and philosophical approaches, this research reveals that the legal framework for carbon trading has enabled the participation of indigenous peoples by recognising customary forests and several forest management schemes. However, access to economic benefits is hampered by communal carbon rights issues, procedural complexity, limited institutional capacity, and the suboptimal benefit-sharing mechanism. Therefore, regulation reinforcement and a transparent, proportional distribution model are necessary. This research, therefore, offers a model of economic rights justice for indigenous peoples that integrates green economy law, justice theory, and the protection of customary rights into more inclusive and just carbon trading governance.

Item Type:	Journal Article
Keywords:	carbon trading; indigenous peoples; economic rights justice; green economy law; customary forest; climate change.
Subjects:	18 LAW AND LEGAL STUDIES > 1801 Law > 180105 Commercial and Contract Law 18 LAW AND LEGAL STUDIES > 1801 Law > 180111 Environmental and Natural Resources Law 18 LAW AND LEGAL STUDIES > 1801 Law > 180127 Mu'amalah (Islamic Commercial & Contract Law) > 18012799 Mu'amalah (Islamic Commercial & Contract Law) not elsewhere classified 18 LAW AND LEGAL STUDIES > 1801 Law
Divisions:	Faculty of Sharia and Law > Department of Sharia Business Law
Depositing User:	Syabbul Bachri
Date Deposited:	13 Jul 2026 13:47

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