Abstract

The transformation of forests to other uses poses a significant threat to the existence of forest areas and leads to damage to forest ecosystems, which can have a detrimental impact on the welfare of people depending on forests, notably indigenous communities. Consequently, there is a need to safeguard the social welfare and rights of affected communities in forest conversion policy by recognizing their rights and protecting them from negative impacts. This research seeks to explore the legal protection of rights and social welfare for local communities in the context of forest function transfer for palm oil plantations in Indonesia, mainly examining Law Number 41 of 1999 concerning Forestry. This research employs a sociology of law approach and uses a qualitative method to analyze primary and secondary data, with triangulation as the data validation technique. The study concludes that expanding oil palm cultivation will result in environmental degradation and harm the people surrounding the area, as they lose natural and economic resources obtained from forests. Consequently, there is a pressing need for specific policies and legal regulations that safeguard the social welfare and rights of affected communities. Policies should consider balancing economic development with environmental preservation and prioritizing the maintenance of forest areas as undeveloped land. In particular, palm oil plantation development should only occur on degraded lands that are still abundant in Indonesia, and permits already granted for palm oil expansion must be reviewed, especially those affecting forested areas. Ultimately, a balance must be struck to promote sustainable economic development and conservation while ensuring that the social welfare and rights of communities depending on forests are protected.