The Minister of Environment and Forestry has introduced Regulation No. 14 of 2024 (MOEF 14/2024) on Supervision and Administrative Sanctions in the Environmental Sector. This new regulation brings strict penalties for companies that fail to comply, aiming to strengthen environmental accountability and ensure companies actively manage their environmental impacts.
What are the fines? MOEF 14/2024 sets out clear penalties:
- 2.5% of the investment value for companies with a Business License but lacking Environmental Approval.
- 5% of the investment value for companies operating without both an Environmental Approval and a Business License.
- 10% of the costs for preparing Environmental Impact Assessment (AMDAL) documents if these documents are prepared by unqualified personnel.
Compliance is not an option, it’s a requirement. Still willing to take the risk?
Afriyan Rachmad
Partner, Nusantara DFDL Partnership
Indonesia
Afriyan is a Partner at Nusantara DFDL Partnership, an Indonesian law firm and a DFDL collaborating firm.
