The mining industry is an important key to Indonesia’s existence and sustainability. In 2025, Non-Tax State Revenue (PNBP) from the Mineral and Coal (Minerba) sector reached Rp135.06 trillion, exceeding the government’s target by 108.30%, and successfully employed over 680,510 people. These impressive figures certainly serve as a testament to the government’s achievements in the mining industry.

However, on the other hand, mining activities involve a series of operations that have the potential to damage the environment and create social issues if not managed properly. Therefore, every mining company is required to recognize the signs of environmental damage and fulfill its responsibilities to prevent unwanted problems in the future. So the question is: what are the responsibilities of mining companies regarding mining activities? To answer this question, read the following article!

The Early Signs of Environmental Damage Caused by Mining Activities

Mining activities in Indonesia play a significant role in supporting national development and economic growth, particularly through the utilization of mineral and coal resources. However, despite their contribution to state revenue and job creation, mining activities also have the potential to cause serious environmental impacts if they are not conducted in accordance with sustainability principles and the provisions of various laws and regulations.

Various problems in mining activities, such as water pollution, land degradation, deforestation, and disruption of ecosystems, often arise due to weak oversight or the suboptimal fulfillment of environmental management obligations by mining operators.

Essentially, environmental damage caused by mining activities does not occur suddenly out of nowhere, but is preceded by warning signs that are often overlooked by operators. Article 3(1) of the Regulation of the Minister of Environment/Environmental Management Agency No. 20 of 2025 on Standard Criteria for Environmental Damage to Land Resulting from Mining Businesses and/or Activities (“Permen LH 20/2025”) states that:

“Standard criteria for environmental damage to land caused by mining operations and/or activities are determined based on the following parameters:

Physical;
Chemical; and
Biological.”

This means that the assessment of whether or not environmental damage has occurred as a result of mining activities is not based solely on the condition of the land surface, but also encompasses all affected environmental elements. The physical parameters include: former mining areas, topsoil, slopes, erosion, landslides, surface water flow, groundwater levels, distance from mining activities, and mine openings. The chemical parameters consist of rocks with potential to cause pollution. Meanwhile, the biological parameters consist of vegetation around water bodies and/or the sea, land cover in revegetation areas, and biodiversity.

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Corporate Responsibility for Mining Activities

Through physical, chemical, and biological parameters, mining companies are expected not only to focus on the exploitation of natural resources, but also to implement sound mining practices, one of which is by managing and monitoring the mining environment, including reclamation and post-mining activities as stipulated in Article 96 of Law No. 4 of 2009 on Mineral and Coal Mining (“Minerba Law”).

In addition to being regulated under the Minerba Law, provisions regarding mining companies’ obligations to protect the environment are further reinforced by Article 22(1) of Law No. 32 of 2009 on Environmental Protection and Management (“Environmental Protection and Management Law”), which states:

“Every business and/or activity that has a significant impact on the environment must have an Environmental Impact Assessment (EIA).”

With regard to its obligation to protect the environment, Article 74(1) of Law No. 40 of 2007 on Limited Liability Companies (“LLC Law”) stipulates that companies engaged in business activities in the natural resources sector are required to fulfill their social and environmental responsibilities. These responsibilities constitute obligations for the company, based on a budget that has been calculated with due regard to legal compliance and cost reasonableness.

The forms of social responsibility that a company may undertake include the following. First, prioritizing the welfare of employees and shareholders. The company must ensure the fulfillment of workers’ rights through fair policies, the provision of benefits, career development, and the creation of a harmonious work environment. Additionally, the company must maintain shareholder trust by providing transparent corporate reports and involving them in certain decision-making processes.

Second, prioritize environmental sustainability. Companies must preserve the environment surrounding their operational areas by managing waste, conducting reforestation efforts, and minimizing air and noise pollution. Failure to do so risks disrupting environmental stability. Additionally, companies need to build good relationships with local communities to ensure that mining activities continue without neglecting environmental conservation and the interests of local residents.

Third, actively engage in community social activities. This engagement can be realized through the provision of social assistance, support for educational activities, the awarding of scholarships, and aid for communities affected by disasters. Through such social participation, mining companies demonstrate not only a focus on economic profit but also a commitment to social responsibility and care for the communities surrounding their operational areas.

Although regulations have been established regarding the social and environmental responsibilities that mining companies must adhere to, in practice, instances of non-compliance by mining companies are still common. So, what happens if a company shirks its responsibilities?

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Legal Penalties as a Risk if Mining Companies Fail to Comply with Regulations

Compliance with the provisions of laws and regulations is an obligation for every Indonesian citizen, including companies that have been recognized as legal entities under Law No. 1 of 2023 on the Criminal Code (“KUHP”). Therefore, mining companies that fail to comply with regulations in their mining activities risk facing legal sanctions, including administrative, criminal, and civil penalties.

When violations of environmental permits are discovered, mining companies risk facing administrative sanctions. These range from written warnings, government enforcement actions, suspension of permits, to revocation of permits as stipulated in Article 76 of the Environmental Protection and Management Law (“UU PPLH”).

In addition to the risk of administrative sanctions, mining companies that fail to fulfill their reclamation and post-mining obligations face criminal penalties of up to 5 (five) years’ imprisonment and a fine of up to Rp100 billion, as explicitly stated in Article 161B(1) of Law No. 3 of 2020 Amending Law No. 4 of 2009 on Mineral and Coal Mining (“Law 3/2020”). These provisions demonstrate that the state does not tolerate mining activities that disregard environmental considerations.

Furthermore, the Criminal Code also provides for corporate criminal liability, whereby a company, as a legal entity, may be held liable and subject to criminal sanctions—including principal and additional penalties, if it is proven to have committed a criminal offense as stipulated in Article 118 of the Criminal Code.

It is not only administrative and criminal sanctions that may be imposed. If mining activities cause damage, the aggrieved party may sue the mining company and seek compensation for damages on the grounds of an unlawful act as provided for in Article 1365 of the Civil Code (“KUHPerdata”). Therefore, mining companies must conduct their business operations in accordance with applicable laws and regulations and implement sound environmental management to minimize the risk of environmental damage and future legal disputes.

Environmental damage caused by mining activities is a serious issue that carries significant risks, potentially leading to liability in the form of administrative, criminal, or even civil penalties. Therefore, it is essential to understand the early warning signs of environmental damage as a preventive measure to avoid more severe consequences.***

Daftar Hukum:

Kitab Undang-Undang Hukum Perdata (“KUHPerdata”).
Undang-Undang Nomor 1 Tahun 2023 tentang Kitab Undang-Undang Hukum Pidana (“KUHP).
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”).
Undang-Undang Nomor 40 Tahun 2007 tentang Perseroan Terbatas (“UU PT”).
Peraturan Menteri Lingkungan Hidup/Badan Pengendalian Lingkungan Hidup Nomor 20 Tahun 2025 tentang Kriteria Baku Kerusakan Lingkungan Hidup Untuk Lahan Akibat Usaha dan/atau Kegiatan Pertambangan (“Permen LH 20/2025”).

Referensi:

ESG dan Hilirisasi Jadi Kunci Pertambangan Berkelanjutan, Generasi Muda Didorong Ambil Peran. Kementerian ESDM. (Diakses pada 22 Mei 2026 Pukul 09.42 WIB).
3 Tanggung Jawab Sosial Perusahaan Tambang. Agincourt Resources. (Diakses pada 22 Mei 2026 Pukul 11.16 WIB).

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Environmental Damage from Mining Activities and Legal Consequences