The Victorian Government's decision to reopen the Malmsbury Youth Justice Centre is another broken promise to Indigenous communities, experts say, which will cost the state millions.

On Tuesday, the government announced the troubled facility - closed two years ago - would reopen to accommodate young people affected by recent changes to Victoria's bail laws.

Those laws have been widely condemned by Indigenous and legal groups, who argue they undermine genuine reform.

An initial 30 beds will reopen for lower-risk young people aged 17 and over, the government says.

In response, the Koorie Youth Council (KYC) warned the move reflects regressive decision-making that risks further entrenching young people in the justice system.

The council said chronic staff shortages at Victoria's two other youth justice facilities have already led to rolling lockdowns, mirroring the crisis seen at Dame Phyllis Frost Centre.

KYC CEO Bonnie Dukakis argued the announcement represents a "complete reversal of the work that has been done by our community, to ensure young mob are provided with the wrap-around support they urgently need".

The Gunditjmara woman said plans to transform Malmsbury from a "place of cruelty" to one focused on "impactful care and rehabilitation" have been "dismissed in favour of harmful reactive decisions".

"If the government truly cares about community safety, not to mention the wellbeing and future of our children and young people, they must do more than just listening," Ms Dukakis said.

Youth Justice Minister Enver Erdogan confirmed the reopening on Tuesday, saying while closing the facility was the right decision at the time, "times have changed".

He said remand rates for young people have risen by 46 per cent year-on-year, arguing more detention capacity is now necessary.

"We're expanding the youth justice system to take serious youth offenders off the streets while also providing opportunities to lower-risk young people to get back on track and away from crime," Mr Erdogan said.

One of the key recommendations of the Royal Commission into Aboriginal Deaths in Custody was that detention should always be a last resort.

The plan is expected to cost $141 million over five years, with a further $4.8 million to upgrade security at the facility.

Justice Reform Initiative Executive Director, Dr Mindy Sotiri, said the reopening represents a waste of public funds and a failure to follow evidence-based policy.

"It is incredibly misleading to suggest that putting more children on remand and reopening prison beds will keep the community safe. The evidence is very clear that the opposite is true: prison does not deter crime, it does not address the drivers of crime, and the experience of incarceration increases the likelihood of children going on to reoffend," Dr Sotiri said.

"Building or reopening detention facilities in response to rising remand numbers is a disappointing and politicised response to policy failure. The rise in Victoria's remand population is not a sign of increased crime; it is a direct consequence of harsher bail laws."

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Since the new bail laws were introduced, Victorian Legal Aid says nearly half of the children it assists on remand also have child protection involvement - a figure even higher for Aboriginal and Torres Strait Islander young people, according to KYC.

"These children have been failed by the state and the systems supposedly designed to support them and their families," Ms Dukakis said.

"Instead of redesigning systems and providing the needed services, the state is ignoring children crying out for help."

Recent increases in remand rates among a small group of repeat offenders have fuelled a concerted media campaign to toughen bail laws that were originally reformed after the death of Indigenous woman Veronica Nelson.

In a report released this week, Victoria's acting Child Commissioner Meena Singh wrote: "Ever-stricter youth bail laws are touted to give an illusion of community protection, at the expense of addressing what actually lies at the heart of the problem - ensuring every child is safe at home, engaged at school and feels included in the broader Victorian community."

"For Aboriginal children and young people, who are already over-represented in the criminal legal system, the impact of tighter bail laws capturing a broader cohort of young people is particularly alarming."