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FORMOSA NEWS - Jakarta - Indonesia’s Weak Green Claims Regulation Raises Risk of Misleading Eco-Friendly Packaging. A 2025 study by Isra Ruddin, Alo Liliweri, and Mirza Ronda from Universitas Sahid Jakarta reveals that Indonesia’s legal framework for environmental communication remains fragmented and vulnerable to misuse. Published in the Formosa Journal of Sustainable Research, the research examines how eco-friendly claims particularly in cardboard beverage packaging are regulated and why current rules fail to prevent misleading practices known as greenwashing. The findings matter as consumers increasingly rely on sustainability labels when choosing products, while companies face growing pressure to demonstrate environmental responsibility.
Growing Demand for Green Products Meets Regulatory Gaps
Indonesia’s forests, among the largest tropical ecosystems in the world, play a critical role in global climate stability, biodiversity, and local livelihoods. Despite improvements, deforestation remains a persistent issue, making sustainable forest management a national priority. At the same time, consumer behavior is shifting. Surveys show that a large majority of Southeast Asian consumers are willing to pay more for environmentally friendly products. This trend has encouraged companies to highlight sustainability in their branding and packaging, especially in industries like food and beverages. However, the rise of “green” marketing has also exposed a regulatory gap. Without clear legal standards, companies can make environmental claims that are difficult to verify. This creates a risk of greenwashing when businesses promote products as eco-friendly without sufficient evidence.
Simple Legal Analysis Combined with Real-World Cases
The research uses a legal analysis approach, reviewing Indonesian laws related to forestry, environmental protection, consumer rights, and corporate responsibility. The study also incorporates real-world insights through socio-legal analysis, examining how these laws are applied in practice.
To illustrate the issue, the researchers analyze two key examples:
Growing Demand for Green Products Meets Regulatory Gaps
Indonesia’s forests, among the largest tropical ecosystems in the world, play a critical role in global climate stability, biodiversity, and local livelihoods. Despite improvements, deforestation remains a persistent issue, making sustainable forest management a national priority. At the same time, consumer behavior is shifting. Surveys show that a large majority of Southeast Asian consumers are willing to pay more for environmentally friendly products. This trend has encouraged companies to highlight sustainability in their branding and packaging, especially in industries like food and beverages. However, the rise of “green” marketing has also exposed a regulatory gap. Without clear legal standards, companies can make environmental claims that are difficult to verify. This creates a risk of greenwashing when businesses promote products as eco-friendly without sufficient evidence.
Simple Legal Analysis Combined with Real-World Cases
The research uses a legal analysis approach, reviewing Indonesian laws related to forestry, environmental protection, consumer rights, and corporate responsibility. The study also incorporates real-world insights through socio-legal analysis, examining how these laws are applied in practice.
To illustrate the issue, the researchers analyze two key examples:
- The Forest Stewardship Council (FSC), an international certification system for sustainable forestry.
- Tetra Pak, a global packaging company known for its sustainability claims.
By combining legal review with case studies, the research provides a comprehensive picture of how environmental communication works and where it fails in Indonesia.
Key Findings: Fragmentation and Weak Oversight
The study identifies several structural weaknesses in Indonesia’s approach to regulating green communication:
Key Findings: Fragmentation and Weak Oversight
The study identifies several structural weaknesses in Indonesia’s approach to regulating green communication:
- Fragmented legal framework. Environmental claims are regulated across multiple laws, including those on forestry, environmental protection, consumer protection, and corporations. However, no single regulation specifically governs eco-friendly claims or how they should be verified.
- No legal definition of greenwashing. Indonesian law does not clearly define greenwashing. This makes it difficult for regulators to take action against misleading environmental claims.
- Unclear status of international certification. Certifications like FSC are widely recognized globally, but their legal standing in Indonesia remains uncertain. This limits their effectiveness as enforcement tools.
- Weak monitoring and enforcement systems. Government agencies do not yet have a unified mechanism to verify environmental claims on product labels. Oversight tends to be reactive rather than preventive.
- Supply chain transparency challenges. Even companies with strong sustainability commitments face difficulties ensuring that all suppliers meet environmental standards, especially in complex global supply chains.
Implications for Policy, Business, and Consumers
The findings have broad implications across multiple sectors. For policymakers, the research highlights the need for a dedicated legal instrument to regulate environmental claims. Stronger rules would align Indonesia with global standards and support its commitments to the Paris Agreement and Sustainable Development Goals (SDGs). For businesses, clearer regulations would create a level playing field. Companies that invest in genuine sustainability efforts would benefit from increased credibility, while those making false claims would face consequences. For consumers, improved regulation would provide greater confidence in eco-friendly labels, enabling more informed purchasing decisions. The research emphasizes that environmental communication should be treated as a legal responsibility, not just a marketing strategy. He argues that sustainability claims must be supported by verifiable evidence to protect both consumers and the environment.
Author Profile
Isra Ruddin, S.E., M.M., is a lecturer and researcher at Sahid University Jakarta specializing in business law, communication, and brand strategy.
Prof. Dr. Alo Liliweri, M.S., is a senior academic at Sahid University Jakarta with expertise in intercultural communication.
Dr. Mirza Ronda, M.Si., is a communication scholar focusing on media, society, and public discourse at Sahid University Jakarta.
Sources
Ruddin, I., Liliweri, A., & Ronda, M. (2025). Legal Framework of Green Communication in Sustainable Forest Conservation: An Analysis on the Use of Eco-Friendly Cardboard Packaging. Formosa Journal of Sustainable Research, Vol. 5 No. 3, 139–154.
DOI: https://doi.org/10.55927/fjsr.v5i3.18
URL: https://journalfjsr.my.id/index.php/fjsr
The findings have broad implications across multiple sectors. For policymakers, the research highlights the need for a dedicated legal instrument to regulate environmental claims. Stronger rules would align Indonesia with global standards and support its commitments to the Paris Agreement and Sustainable Development Goals (SDGs). For businesses, clearer regulations would create a level playing field. Companies that invest in genuine sustainability efforts would benefit from increased credibility, while those making false claims would face consequences. For consumers, improved regulation would provide greater confidence in eco-friendly labels, enabling more informed purchasing decisions. The research emphasizes that environmental communication should be treated as a legal responsibility, not just a marketing strategy. He argues that sustainability claims must be supported by verifiable evidence to protect both consumers and the environment.
Author Profile
Isra Ruddin, S.E., M.M., is a lecturer and researcher at Sahid University Jakarta specializing in business law, communication, and brand strategy.
Prof. Dr. Alo Liliweri, M.S., is a senior academic at Sahid University Jakarta with expertise in intercultural communication.
Dr. Mirza Ronda, M.Si., is a communication scholar focusing on media, society, and public discourse at Sahid University Jakarta.
Sources
Ruddin, I., Liliweri, A., & Ronda, M. (2025). Legal Framework of Green Communication in Sustainable Forest Conservation: An Analysis on the Use of Eco-Friendly Cardboard Packaging. Formosa Journal of Sustainable Research, Vol. 5 No. 3, 139–154.
DOI: https://doi.org/10.55927/fjsr.v5i3.18
URL: https://journalfjsr.my.id/index.php/fjsr
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