Indonesia is a legally plural society in which customary law coexists with state law. Articles 18B paragraph (2) and 28I paragraph (3) of the 1945 Constitution recognize customary communities and their traditional rights, yet sectoral recognition procedures can make the practical enforceability of those rights dependent on state validation. This article examines the resulting “recognition paradox” and develops a substantive legal pluralism model for customary-law recognition in Indonesia. The study uses normative legal research through statutory, conceptual, and case approaches, with Constitutional Court Decision Number 35/PUU-X/2012 as the principal case and additional consideration of Decisions Number 31/PUU-V/2007 and 95/PUU-XII/2014. The analysis distinguishes constitutive recognition from declaratory-protective recognition, specifies minimum procedural and evidentiary safeguards, and develops a six-stage framework of identification, participation, verification, protection, coordination, and remedy. The findings show that recognition can protect customary rights while simultaneously producing institutional dependence when verification is treated as the source of legal existence. The article proposes that verification should provide legal certainty without creating the underlying customary community, while constitutional rights, third-party interests, and effective review remain protected. The proposed framework is normative and is presented as a basis for future empirical testing