This article investigates the problem of defining ‘people’ and ‘indigenous people’ under the International Human Rights Covenants and their application in the Indonesian context. Using analyses based on the Third World Approach to International Law (twail), this article shows the problems facing Indonesia in identifying indigenous peoples as traditional peoples, in terms of being isolated peoples (Masyarakat Hukum Adat, hereafter mha), and the non-isolated indigenous peoples who were sovereign before the independence of Indonesia. This interpretation has been confusing in relation to the entitlement to natural resources. Therefore, this article proposes a new understanding of indigenous peoples, in order to arrive at better treatment and recognition and in terms of sharing power and the benefits of natural resources in the Indonesian system.