KnE Social Sciences

Published date: Oct 31 2025

Journal Title: KnE Social Sciences

Issue title: The 8th Legal International Conference and Studies (LICS 2025): Corporate Responsibility and Environmental Law Through Economic & Business Management Practices

Pages: 333 - 351

DOI: 10.18502/kss.v10i27.20072

‎ SahudiSahudi.std@unissula.ac.idDoctoral of Law Program, Universitas Islam Sultan Agung (UNISSULA), Semarang

Indonesia does not yet have specific and comprehensive regulations regarding greenwashing, existing legal frameworks such as the Consumer Protection Law, the ITE Law, and environmental regulations can serve as a legal umbrella. This study aims to analyze how Indonesian law accommodates this practice and identify forms of corporate accountability, as well as provide recommendations for regulatory reform and increasing consumer awareness. Increasing public awareness is a crucial first step to ensuring truly sustainable and ethical business practices. This study adopts a normative legal research method with a statute approach and a comparative approach. This approach was chosen to address the legal vacuum in Indonesia and formulate normative recommendations through comparison with the legal frameworks in the UK and Australia. Primary legal data includes the 1945 Constitution, Broadcasting Law, Consumer Protection Law, ITE Law, Environmental Protection and Management Law, Job Creation Law (through Perppu 2/2022), PP on Food Labels and Advertisements, and PP on Electronic Trading. Secondary and tertiary data complement this qualitative-normative analysis, which includes organizing legal instruments, interpretation, synchronization with greenwashing practices, and corporate accountability analysis. Based on the analysis, it can be concluded that Indonesia’s legal framework for addressing greenwashing is still general and fragmentary, does not yet have specific regulations, and its implementation is highly dependent on the interpretation of general norms. Corporate responsibility for greenwashing in Indonesia is limited by the absence of specific regulations, minimal legal precedents, and weak enforcement mechanisms, which cause law enforcement to tend to be passive and ineffective. Referring to the more specific and proactive approach of Australian and British regulators—characterized by explicit definitions, detailed guidelines, aggressive law enforcement including significant financial sanctions—Indonesia needs to formulate specific anti-greenwashing regulations, issue detailed guidelines for business actors, strengthen law enforcement mechanisms with heavier sanctions, and intensify education and public awareness to create a fair market environment that supports true sustainability.

Keywords: consumer, corporate, protection, responsibility

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