Articles

Greenwashing Practices : An Indonesian Competition Law Perspective

Abstract

Introduction to the Problem: Greenwashing Practice is a manifestation of changes in the Company's orientation toward global environmental issues, influencing the Company's direction amid increasingly competitive business conditions. This study analyzes the greenwashing practices from the Perspective of Competition Law in Indonesia.

Novelty: This study introduces a novel perspective by examining the inconsistency between industrial growth objectives and environmental ethical standards, which logically leads to the emergence of greenwashing practices. The optimization of complementary regulations that balance industrial growth with compliance with environmental ethical standards is expected to contribute to fair market competition while supporting environmental sustainability.

Methodology: This study uses a normative juridical method with statutory and conceptual approaches.

Results/Findings: This study concludes that greenwashing practices can create unfair business competition by dishonestly marketing products through misleading environmental claims to manipulate consumers. The government needs to revise the unfair business competition law by incorporating environmental criteria to prevent unfair competition. In addition, the Indonesian Competition Commission (KPPU) requires cross-sectoral supervision with other institutions to maintain environmental sustainability and provide consumers with a sense of security regarding products and services.

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