Indonesian Political, Business & Finance News

67 Companies Face Administrative Sanctions Following Sumatra Floods

| | Source: MEDIA_INDONESIA Translated from Indonesian | Regulation
67 Companies Face Administrative Sanctions Following Sumatra Floods
Image: MEDIA_INDONESIA

The Ministry of Environment and Forestry (KLH) has imposed administrative sanctions on 67 companies in Aceh, North Sumatra, and West Sumatra after they were found to have contributed to last year’s floods. This measure aims to encourage corporate compliance with environmental regulations.

The sanctions were issued because these companies were among the factors behind the hydrometeorological disaster in the Sumatra region.

During a working meeting with Commission XII of the House of Representatives (DPR RI) in Jakarta on Monday (6/4), the Minister of Environment and Forestry/Head of the Environmental Control Agency (BPLH), Hanif Faisol Nurofiq, explained that KLH/BPLH had verified 175 companies operating in the mining, palm oil plantation, and forest business permit (PBPH) sectors in production forests covering 1,805,615 hectares.

“From the process of issuing administrative sanctions to criminal proceedings, and some environmental approvals at the provincial level that we have delegated to the provinces. Some have been returned to the forestry sector, and out of the 175, two are not operating,” said Hanif.

Of that number, 22 business units have received administrative sanctions in the form of mandatory environmental audits. Meanwhile, 45 other business units are still in the issuance process, bringing the total to 67 companies sanctioned.

In addition, civil lawsuits have been filed against six companies in North Sumatra with a total claim value of Rp4.947 trillion, while six other companies have been subjected to criminal sanctions by KLH/BPLH.

Hanif also emphasised that his office has conducted a rapid environmental study regarding the spatial and regional planning designs of the three affected provinces.

“Post-disaster housing has been prepared in detail; we provide detailed spatial guidance per sub-district. Locations that should be avoided for permanent housing development and locations that still have carrying capacity for rapid housing development,” explained Hanif.

The study found discrepancies between the Strategic Environmental Assessment (KLHS) and the spatial and regional plans, which worsened the impacts of the hydrometeorological disaster. The study results have been submitted to relevant parties to prevent similar disasters from recurring.

View JSON | Print