Growing exploitation of forest resources in Indonesia is creating wider opportunities for greenwashing practices in the forestry sector, according to a study conducted by Indri Septiana, Sunarno, and Hasrin Jamrudin from Universitas Muhammadiyah Yogyakarta. Published in 2026 in the International Journal of Education and Life Sciences (IJELS), the research argues that Indonesia’s forest licensing system still focuses too heavily on administrative compliance while failing to guarantee real ecological sustainability.
The study explains that greenwashing occurs when corporations or institutions present themselves as environmentally responsible through sustainability claims, official permits, certifications, or environmental reports, even though their operational activities continue to damage forests and trigger social conflicts. In Indonesia’s forestry sector, business permits are often used as instruments of administrative legitimacy rather than effective tools for environmental protection.
The researchers noted that policy reforms introduced through Indonesia’s Job Creation Law and the risk-based Online Single Submission (OSS-RBA) licensing system were designed to accelerate investment and improve bureaucratic efficiency. However, the simplification of licensing procedures may also increase the risk of greenwashing if it is not accompanied by stronger supervision, transparency, and meaningful public participation.
The study highlights numerous cases of forest clearing, land conflicts, floods, and landslides in several Indonesian regions as evidence of weak ecological verification within the forest licensing process. Many companies have successfully fulfilled administrative requirements such as Environmental Impact Assessments (EIA) and legality certifications while continuing practices that damage ecosystems and harm local communities.
According to the researchers, the main problem lies in the gap between “formal legality” and “ecological integrity.” Indonesia’s licensing system still prioritizes document completeness over substantial ecological evaluation. As a result, permits that should function as environmental protection instruments may instead legitimize unsustainable forest exploitation.
The study also introduces an Islamic law perspective into forestry governance analysis. In Islamic teachings, humans are regarded as khalifah fil ardh — guardians of the Earth who are responsible for maintaining ecological balance and preventing environmental destruction. The researchers argue that greenwashing practices contradict Islamic principles of honesty (sidq), justice (adl), and the prohibition of deception (tadlis) in natural resource management.
The researchers further emphasized that the concept of maqasid al-shariah supports environmental protection because it prioritizes the preservation of life, property, and the welfare of future generations. In a modern environmental context, these principles can be interpreted as obligations to protect ecosystems and prevent excessive exploitation of natural resources.
To address these problems, the study proposes a reconstruction of Indonesia’s forest licensing policy through several key reforms:
- strengthening ecological evaluation in every licensing process,
- increasing transparency in forest permit data,
- expanding public participation in environmental monitoring,
- imposing stricter administrative and criminal sanctions for environmental violations,
- and integrating principles of environmental law and Islamic law into forest governance.
The researchers argue that combining Islamic ethical principles with modern environmental law could strengthen the moral and normative foundations of natural resource governance. Forest licensing should no longer be viewed solely as a business legality instrument, but also as a public trust to protect ecosystems and community welfare for future generations.
The findings are considered significant for Indonesia’s ongoing forestry governance reform amid increasing global pressure for sustainable environmental policies. Stronger ecological supervision and greater transparency in licensing systems are expected to help reduce deforestation, prevent environmental disasters, minimize social conflicts, and improve public trust in national environmental policies.
Author Profiles
- Indri Septiana - Universitas Muhammadiyah Yogyakarta
- Sunarno - Universitas Muhammadiyah Yogyakarta
- Hasrin Jamrudin Universitas Muhammadiyah Yogyakarta
Research Source
Septiana, I., Sunarno, & Jamrudin, H. (2026). Reconstruction of Forest Licensing Policy in Preventing Greenwashing Perspectives of Islamic Law and Environmental Law in Indonesia. International Journal of Education and Life Sciences (IJELS), Vol. 4 No. 4, 405–418.
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