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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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