The mining industry plays a significant role in Indonesia’s national economy. However, alongside its economic contributions, mining activities often cause adverse environmental impacts, including pollution and ecosystem degradation. This necessitates stringent regulatory frameworks to ensure environmental responsibility among mining operators.

A recent case involving environmental degradation from tin mining—causing state losses of up to Rp 271 trillion—illustrates poor mining governance. In response, mining companies are expected to adopt sustainability principles across all operational levels to ensure that exploration and production activities are not only economically viable but also socially and environmentally responsible.

Legal Framework Governing Environmental Liability in the Mining Sector

In Indonesia, environmental liability within the mining sector is primarily regulated under two statutes: Law No. 32/2009 on Environmental Protection and Management (“Environmental Law” or locally known as UU PPLH); and Law No. 2 of 2025 on the Fourth Amendment to Law No. 4 of 2009 on Mineral and Coal Mining (“Mining Law” or otherwise UU Minerba).

Environmental and mining laws are inherently interconnected, as all mining activities—whether related to general mining or oil and gas extraction—must preserve the environmental carrying capacity (daya dukung) and assimilation capacity (daya tampung). These two indicators are critical in determining whether a mining activity may be deemed environmentally feasible. If an area cannot withstand the environmental burden of exploitation, no mining license should be issued. The government, therefore, plays a crucial supervisory role in ensuring that mining operations remain ecologically accountable and uphold the welfare of surrounding communities.

The Environmental Law sets forth the foundational principles of environmental responsibility applicable to all business actors and activities. Article 1(14) defines environmental pollution as the introduction of living organisms, substances, energy, and/or other components into the environment due to human activities, resulting in the exceedance of established environmental quality standards.

Further, the Environmental Law enshrines the “polluter pays principle”, assigning strict liability to polluters for any resulting damage or pollution. This implies that liability is imposed regardless of fault or negligence. This principle, rooted in international practice, has been acknowledged and enforced by Indonesian courts.

Meanwhile, the Mining Law provides sector-specific provisions outlining the environmental obligations of mining operators. Given the significant impact of mining on environmental equilibrium—both directly and indirectly—any party seeking to engage in mining activities must obtain a mining business license from the central government.

Under Article 35(2) of the Mining Law, a mining license may be issued only if the applicant possesses a Business Identification Number (NIB), a standard certificate, and/or the appropriate license. These licenses include: mining business license (IUP), special mining business license (IUPK), continuation of contract/agreement operations license (IUPK-OP), people’s mining license (IPR), rock mining permit (SIPB), assignment license, transportation and sales permit, mining services business license (IUJP), and IUP for sales purposes.

Sanctions for Environmental Pollutions in Mining Activities

The requirement for NIBs, standard certificates, and business licenses ensures that mining activities are carried out in accordance with prevailing laws and remain subject to effective governmental oversight. Nevertheless, despite legal compliance, environmental contamination may still occur due to operational risks, human error, natural disasters, or unforeseen technological failures.

Accordingly, Article 76(2) of the Environmental Law provides for the following administrative sanctions in response to environmental violations:

1. Written warnings;
2. Government-imposed coercive measures;
3. Suspension of environmental licenses; or
4. Revocation of environmental licenses.

The Mining Law likewise imposes administrative sanctions for violations committed by holders of IUP, IUPK, IPR, SIPB, or sales-based IUPs, including:

1. Written warnings;
2. Fines;
3. Temporary suspension of part or all exploration or production operations; and/or
4. Revocation of licenses.

Beyond administrative penalties, criminal sanctions may be imposed for environmental crimes related to mining activities. For example, the unlawful disposal of waste into the environment without a permit is punishable by up to three years of imprisonment and a fine ranging from Rp 1 billion to Rp 3 billion, pursuant to Article 104 of the Environmental Law.

Should mining activities cause harm to third parties, affected parties may pursue civil claims as provided under Article 145(1) of Law No. 3 of 2020 (the amendment to the 2009 Mining Law), which state “communities directly affected by mining operations shall have the right to:

1. receive adequate compensation for losses resulting from mining-related negligence, in accordance with applicable laws; and/or
2. file a lawsuit in court for damages resulting from unlawful mining operations.”

Also read: Bagaimana Penyelesaian Sengketa Arbitrase dalam Industri Pertambangan?

The Government’s Role in Mitigating Mining-Related Environmental Harm

In the context of mining operations, the government functions as regulator and supervisor. To mitigate environmental impacts, it may formulate and revise mining regulations to align with the mandates of the 1945 Constitution; issue mining business licenses; monitor compliance of mining companies with applicable laws; and enforce sanctions in case of regulatory breaches.

The government must exercise due care in ensuring that mining activities are conducted in accordance with legal provisions and do not produce negative externalities.

As a sector with significant economic impact, the mining industry must not operate at the expense of environmental integrity. Indonesian law, through the Environmental Law and the Mining Law, establishes a comprehensive legal framework to hold mining companies accountable for environmental harm. These regulations mandate not only administrative compliance but also impose strict liability and criminal sanctions for environmental violations.

To ensure long-term viability and social legitimacy, mining operations must incorporate environmental responsibility into every stage of their business. The government plays a critical role in enforcement, but the ultimate obligation lies with the companies to operate in a manner that respects both legal boundaries and ecological limits. Sustainable mining is not only a legal imperative—it is a moral and economic necessity.***

Also read: Analisis Dampak Lingkungan Wajib Dipatuhi dalam Pertambangan

Regulations:

Undang-Undang Nomor 2 Tahun 2025 tentang Perubahan Keempat atas Undang-Undang Nomor 4 Tahun 2009 tentang Pertambangan Mineral dan Batubara (“UU 2/2025”).
Undang-Undang Nomor 3 Tahun 2020 tentang Perubahan atas Undang-Undang Nomor 4 Tahun 2009 tentang Pertambangan Mineral dan Batubara (“UU 3/2020”)
Undang-Undang Nomor 32 Tahun 2009 tentang Perlindungan dan Pengelolaan Lingkungan Hidup (“UU PPLH”).
Undang-Undang Nomor 4 Tahun 2009 tentang Pertambangan Mineral dan Batubara (“UU Minerba”).

References:

Harjanti, W. (2006). Upaya Alternatif Bagi Pemerintah Indonesia dalam Mengurangi Dampak Negatif Kegiatan Pertambangan di Indonesia. Risalah Hukum, Edisi No. 3, Hal. 44-51. (Diakses pada 22 April 2025 Pukul 13.10 WIB).
Butar, F. B. (2010). Penegakan Hukum Lingkungan di Bidang Pertambangan. Yuridika, 25(2), 155. (Diakses pada 22 April 2025 Pukul 13.20 WIB).
Kerusakan Lingkungan Tambang Timah Senilai Rp271 Triliun, Haruskah Diganti?. Kompas.id. (Diakses pada 22 April 2025 Pukul 11.25 WIB).
Perusahaan Tambang Harus Terapkan Prinsip Keberlanjutan, Ini Aspek-aspeknya! Kompas.com. (Diakses pada 22 April 2025 Pukul 11.29 WIB).
Polluter Pays Principle, Asal Muasal Pengaturan dan Penerapannya di Indonesia. Hukumonline. (Diakses pada 22 April 2025 Pukul 13.19 WIB).

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Legal Accountability for Environmental Damage in the Mining Sector