Administrative Sanctions in Indonesian Environmental Law: The Complete Enforcement Framework Under PP 22/2021
1.0 Understanding Indonesia's Environmental Enforcement Framework
Indonesia's environmental enforcement system operates through a comprehensive administrative sanctions framework established under Government Regulation PP 22/2021 on Environmental Protection and Management Implementation. Chapter XI (BAB XI) of this regulation dedicates 22 articles (Pasal 505-526) to the procedures for applying administrative sanctions (Tata Cara Penerapan Sanksi Administratif), creating a graduated enforcement system that begins with written warnings and escalates through government coercion, administrative fines, license suspension, and ultimately license revocation for persistent violators. The framework establishes a mandatory enforcement obligation, where Article 505 explicitly states that the Minister, Governor, or Regent/Mayor "wajib menerapkan" (must apply) sanctions when supervision discovers violations, removing discretionary non-enforcement. Central to this system are the investment-based fine calculations, where operating without Environmental Approval triggers fines of 2.5% to 5% of investment value up to a maximum of Rp 3 billion, and the second-layer enforcement mechanism (sanksi administratif lapis kedua) that allows the central government to intervene directly when regional authorities deliberately fail to enforce against serious violations. This article provides a systematic analysis of Indonesia's administrative sanctions framework, examining the five sanction types, authority distribution, fine calculation formulas, escalation pathways, government coercion mechanisms, license suspension and revocation triggers, second-layer enforcement, and sanction removal procedures.
2.0 Mandatory Enforcement Obligation and Authority
Articles 505-507 establish the foundational principle that administrative sanctions are mandatory, not discretionary, and distribute enforcement authority across three government levels.
2.1 Mandatory Enforcement Principle
| Principle | Indonesian Provision | Legal Effect | Enforcement Implication |
|---|---|---|---|
| Mandatory application | Wajib menerapkan Sanksi Administratif | No discretionary non-enforcement | Officials must act on violations |
| Supervision-based | Jika dalam pengawasan ditemukan pelanggaran | Triggers upon supervision findings | Documented violations require response |
| Standards compliance | Sesuai dengan norma, standar, prosedur, dan kriteria | Ministerial standards govern process | Uniform enforcement procedures |
Article 505 paragraph 1 states that the Minister, Governor, or Regent/Mayor "wajib menerapkan Sanksi Administratif" (must apply Administrative Sanctions) when supervision discovers violations. The word "wajib" (must/obligated) creates a mandatory enforcement obligation, distinguishing Indonesia's system from discretionary enforcement regimes.
2.2 Authority Distribution Matrix
| Authority Level | Indonesian Term | Jurisdiction | Permit Type |
|---|---|---|---|
| National | Menteri | Central government permits | AMDAL/UKL-UPL national projects |
| Provincial | Gubernur | Provincial government permits | Provincial-issued approvals |
| District/City | Bupati/Wali Kota | Local government permits | District/city-issued approvals |
Article 506 establishes the "follow the permit" principle: enforcement authority lies with the government level that issued the Environmental Approval. The Minister enforces against violations of centrally-issued permits, the Governor against provincial permits, and the Regent/Mayor against local permits.
2.3 Delegation Authority
| Delegator | Delegatee | Indonesian Term | Scope |
|---|---|---|---|
| Minister | Law enforcement official | Pejabat yang membidangi penegakan hukum | National enforcement |
| Governor | Environmental agency | Perangkat daerah yang membidangi Lingkungan Hidup | Provincial enforcement |
| Regent/Mayor | Environmental agency | Perangkat daerah yang membidangi Lingkungan Hidup | Local enforcement |
Article 507 permits delegation of enforcement authority to specialized law enforcement officials or regional environmental agencies, enabling operational flexibility while maintaining formal responsibility at the executive level.
3.0 Five Administrative Sanction Types
Article 508 establishes five distinct sanction types, arranged in escalating severity from written warning to license revocation.
3.1 Sanction Type Hierarchy
| Sanction Type | Indonesian Term | Severity Level | Application Trigger |
|---|---|---|---|
| Written warning | Teguran tertulis | 1 (Lowest) | Administrative violations |
| Government coercion | Paksaan pemerintah | 2 | Non-compliance with warning |
| Administrative fine | Denda administratif | 3 | Specific violation criteria |
| License suspension | Pembekuan Perizinan Berusaha | 4 | Non-compliance with coercion/fine |
| License revocation | Pencabutan Perizinan Berusaha | 5 (Highest) | Persistent non-compliance |
Article 508 paragraph 1 lists these five sanctions in order of severity, with the conjunction "dan/atau" (and/or) indicating that multiple sanctions may apply simultaneously.
3.2 Sanction Decision Requirements
| Decision Element | Indonesian Requirement | Documentation Purpose |
|---|---|---|
| Official identity | Nama jabatan dan alamat pejabat | Authority verification |
| Business identity | Nama dan alamat penanggung jawab | Violator identification |
| Company details | Nama dan alamat perusahaan | Entity identification |
| Violation type | Jenis pelanggaran | Violation categorization |
| Violated provisions | Ketentuan yang dilanggar | Legal basis documentation |
| Required actions | Uraian kewajiban atau perintah | Compliance instructions |
| Compliance deadline | Jangka waktu penaatan | Timeline for compliance |
Article 508 paragraph 3 mandates these seven elements in every sanction decision, ensuring complete documentation and clear instructions for the violating party.
3.3 Application Considerations
| Consideration Factor | Indonesian Term | Assessment Focus |
|---|---|---|
| Environmental effectiveness | Efektivitas terhadap pelestarian fungsi Lingkungan Hidup | Sanction's protective impact |
| Violation severity | Tingkatan atau jenis pelanggaran | Classification of offense |
| Compliance history | Tingkat ketaatan terhadap perintah dalam Sanksi | Response to prior sanctions |
| Compliance record | Riwayat ketaatan | Past compliance behavior |
| Environmental impact | Tingkat pengaruh pelanggaran pada Lingkungan Hidup | Damage assessment |
Article 509 paragraph 2 requires officials to consider these five factors when selecting appropriate sanctions, ensuring proportionality between violation severity and enforcement response.
4.0 Government Coercion Mechanisms
Article 511 establishes government coercion (paksaan pemerintah) as the primary enforcement tool for non-compliant businesses, with eight specific forms of coercive action.
4.1 Coercion Triggers
| Trigger Scenario | Indonesian Description | Warning Required |
|---|---|---|
| Warning non-compliance | Tidak melaksanakan perintah dalam teguran tertulis | Yes - after warning period |
| Serious human/environmental threat | Ancaman yang sangat serius bagi manusia dan Lingkungan Hidup | No - immediate coercion |
| Expanding damage | Dampak yang lebih besar dan lebih luas | No - immediate coercion |
| Growing environmental loss | Kerugian yang lebih besar bagi Lingkungan Hidup | No - immediate coercion |
Article 511 paragraphs 1-2 establish that government coercion normally follows non-compliance with written warnings, but may be applied immediately without warning when serious threats require urgent action.
4.2 Eight Coercion Forms
| Coercion Form | Indonesian Term | Application Context |
|---|---|---|
| Production halt | Penghentian sementara kegiatan produksi | Ongoing violation from production |
| Equipment relocation | Pemindahan sarana produksi | Equipment causing violations |
| Discharge closure | Penutupan saluran pembuangan air limbah atau Emisi | Illegal discharge pathways |
| Demolition | Pembongkaran | Illegal structures/facilities |
| Seizure | Penyitaan terhadap barang atau alat | Violation-causing equipment |
| Activity suspension | Penghentian sementara sebagian atau seluruh Usaha | Operational violations |
| Document preparation | Kewajiban menyusun DELH atau DPLH | Documentation deficiencies |
| Other remedial actions | Tindakan lain untuk memulihkan fungsi Lingkungan Hidup | Case-specific remediation |
Article 511 paragraph 3 provides these eight coercion options, giving authorities flexibility to match enforcement action to violation type.
4.3 Environmental Recovery Through Coercion
| Recovery Mechanism | Indonesian Provision | Cost Responsibility |
|---|---|---|
| Self-recovery | Pemulihan Lingkungan Hidup oleh penanggung jawab | Business bears costs |
| Third-party recovery | Penunjukan pihak ketiga untuk melakukan pemulihan | Business bears costs |
| Fund-based recovery | Bersumber dari dana penjaminan | Environmental restoration fund |
Article 512 establishes that environmental recovery costs always fall on the violating business, whether self-conducted, third-party conducted, or drawn from the environmental restoration fund established under Article 471.
5.0 Administrative Fine Framework
Articles 514-520 establish a comprehensive fine calculation system with investment-based formulas and violation-level classifications.
5.1 Seven Fine Trigger Criteria
| Criterion | Indonesian Description | Fine Basis |
|---|---|---|
| License without approval | Tidak memiliki Persetujuan Lingkungan namun telah memiliki Perizinan Berusaha | 2.5% of investment |
| No license, no approval | Tidak memiliki Persetujuan Lingkungan dan Perizinan Berusaha | 5% of investment |
| Quality standard exceedance | Melebihi Baku Mutu Air Limbah dan/atau Baku Mutu Emisi | Pollution load calculation |
| Permit obligation failure | Tidak melaksanakan kewajiban dalam Perizinan Berusaha | Violation level |
| Uncertified AMDAL preparer | Menyusun Amdal tanpa sertifikat kompetensi | 10% of AMDAL cost |
| Negligent standard exceedance | Kelalaian mengakibatkan dilampauinya Baku Mutu | Case-specific |
| Negligent pollution/damage | Kelalaian mengakibatkan Pencemaran/Kerusakan | Case-specific |
Article 514 paragraph 1 establishes these seven criteria that trigger administrative fines, each with its own calculation methodology.
5.2 Investment-Based Fine Calculations
| Violation Category | Indonesian Term | Percentage | Maximum Fine |
|---|---|---|---|
| Operating with Business License but no Environmental Approval | Tidak memiliki Persetujuan Lingkungan namun telah memiliki Perizinan Berusaha | 2.5% | Rp 3,000,000,000 |
| Operating without any permits | Tidak memiliki Persetujuan Lingkungan dan Perizinan Berusaha | 5% | Rp 3,000,000,000 |
| AMDAL without certified preparer | Menyusun Amdal tanpa sertifikat kompetensi | 10% of AMDAL cost | Not specified |
Article 515 establishes the 2.5% formula for businesses with Business License but lacking Environmental Approval, while Article 516 sets the 5% formula for completely unpermitted operations. Article 519 establishes the 10% penalty for AMDAL preparation without certified preparers.
5.3 Violation Level Fine Structure
| Violation Level | Indonesian Term | Minimum Fine | Maximum Fine |
|---|---|---|---|
| Light | Ringan | Rp 1,000,000 | Rp 5,000,000 |
| Medium | Sedang | Rp 10,000,000 | Rp 15,000,000 |
| Heavy | Berat | Rp 20,000,000 | Rp 25,000,000 |
Article 518 establishes this three-tier violation classification for permit obligation failures, with fines calculated cumulatively for multiple violations up to the Rp 3 billion maximum.
5.4 Pollution Load-Based Calculation
| Calculation Element | Indonesian Formula | Unit |
|---|---|---|
| Concentration excess | Konsentrasi aktual minus konsentrasi baku mutu | mg/L or mg/m3 |
| Flow rate | Debit/laju alir | L/day or m3/day |
| Duration | Lamanya waktu pelanggaran | Days |
| Fine | Unit beban pencemar x tarif | Rupiah |
Article 517 establishes that fines for exceeding quality standards are calculated based on pollution load units, multiplying the excess concentration by flow rate and violation duration.
6.0 License Suspension and Revocation
Articles 521-522 establish the triggers for the most severe administrative sanctions: license suspension and revocation.
6.1 License Suspension Triggers
| Trigger | Indonesian Provision | Escalation From |
|---|---|---|
| Coercion non-compliance | Tidak melaksanakan paksaan pemerintah | Government coercion |
| Fine non-payment | Tidak membayar denda administratif | Administrative fine |
| Delay fine non-payment | Tidak membayar denda keterlambatan | Coercion delay fine |
Article 521 establishes these three triggers for license suspension (pembekuan), which freezes business operations until compliance is achieved.
6.2 License Revocation Triggers
| Trigger | Indonesian Provision | Severity Level |
|---|---|---|
| Coercion obligation failure | Tidak melaksanakan kewajiban dalam paksaan pemerintah | High |
| Fine non-payment | Tidak membayar denda administratif | High |
| Delay fine non-payment | Tidak membayar denda atas keterlambatan | High |
| Suspension non-compliance | Tidak melaksanakan kewajiban dalam pembekuan | Escalation |
| Irreparable environmental damage | Pencemaran/Kerusakan yang tidak dapat ditanggulangi atau sulit dipulihkan | Extreme |
Article 522 establishes five triggers for license revocation (pencabutan), the most severe administrative sanction. The fifth trigger allows immediate revocation for environmental damage that cannot be mitigated or is difficult to recover, regardless of prior sanction history.
7.0 Second-Layer Enforcement
Article 523 establishes the second-layer enforcement mechanism (sanksi administratif lapis kedua) that enables central government intervention when regional authorities fail to act.
7.1 Central Intervention Triggers
| Trigger Condition | Indonesian Provision | Required Finding |
|---|---|---|
| Deliberate non-enforcement | Pemerintah Daerah secara sengaja tidak menerapkan Sanksi Administratif | Intent to not enforce |
| Serious violations | Pelanggaran yang serius di bidang Perlindungan dan Pengelolaan Lingkungan Hidup | Violation severity |
| Public unrest | Menimbulkan keresahan masyarakat | Social impact (Pasal 524) |
Article 523 paragraph 1 permits the Minister to directly apply sanctions against businesses when regional government "secara sengaja tidak menerapkan" (deliberately does not apply) sanctions against serious environmental violations.
7.2 Supervision of Sanction Compliance
| Authority Level | Supervision Scope | Escalation Authority |
|---|---|---|
| Minister | Sanctions issued by Minister | Apply heavier sanctions |
| Governor | Sanctions issued by Governor | Apply heavier sanctions |
| Regent/Mayor | Sanctions issued by Regent/Mayor | Apply heavier sanctions |
| Minister (second layer) | All sanctions when regional governments fail | Direct central intervention |
Article 524 establishes that each authority level supervises compliance with its own sanctions, with authority to escalate to heavier sanctions for non-compliance. The Minister may intervene when regional governments fail to supervise.
8.0 Sanction Removal Procedures
Article 525 establishes the procedure for removing administrative sanctions when businesses achieve compliance.
8.1 Sanction Removal Requirements
| Requirement | Indonesian Provision | Verification Method |
|---|---|---|
| Full compliance | Telah menaati seluruh kewajiban dalam Sanksi Administratif | Supervision results |
| Supervision verification | Berdasarkan hasil pengawasan | Official inspection report |
| Authority decision | Pencabutan keputusan Sanksi Administratif | Formal decision document |
Article 525 requires complete compliance with all sanction obligations, verified through supervision results, before sanctions may be removed through a formal decision by the issuing authority.
8.2 Compliance Documentation Matrix
| Compliance Element | Required Documentation | Verification Process |
|---|---|---|
| Environmental recovery | Pemulihan Lingkungan Hidup | Site inspection |
| Fine payment | Bukti pembayaran denda | Payment records |
| Technical compliance | Pemenuhan standar teknis | Technical verification |
| Permit obligations | Pelaksanaan kewajiban izin | Document review |
Sanction removal requires documented verification of all compliance elements, ensuring that businesses have genuinely resolved the violations that triggered enforcement action.
Conclusion: Implementing Sanctions Compliance
Indonesia's administrative sanctions framework under PP 22/2021 creates a mandatory, graduated enforcement system that every business operating in environmentally-sensitive sectors must understand. Key compliance elements include: (1) recognizing that administrative sanctions are mandatory (wajib) when violations are discovered, eliminating reliance on discretionary non-enforcement; (2) understanding the five-tier sanction hierarchy from written warnings through license revocation; (3) maintaining awareness of the investment-based fine calculations where operating without Environmental Approval triggers 2.5% to 5% fines up to Rp 3 billion; (4) complying promptly with government coercion orders to avoid escalation to license suspension and revocation; (5) understanding that irreparable environmental damage triggers immediate license revocation regardless of prior sanction history; (6) recognizing that central government may intervene directly when regional authorities deliberately fail to enforce against serious violations; and (7) achieving complete compliance with all sanction obligations, verified through supervision, before sanctions can be removed. Environmental compliance officers should maintain proactive monitoring systems to detect and correct violations before they trigger the formal enforcement process, as the mandatory nature of sanctions under PP 22/2021 leaves little room for negotiated non-enforcement once violations are documented.
Official Sources
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