We theoretically study the optical properties of the composite made of indium nitride (InN) containing metallic indium clusters, using quasistatic approximation and effective medium approximation. The influences of indium cluster shape and volume concentration on the optical properties of entire sample are systematically discussed. Our results can satisfactorily explain recent experiments on the dielectric function of InN containing indium [M. Losurdo, G. Bruno, T.-H. Kim, S. Choi, and A. Brown, Appl. Phys. Lett. 88, 121928 (2006)].