Investors Beware! Administrative Fines for Environmental Violations Set at 5% of Investment Value

In 2021, the Government introduced Regulation No. 22 of 2021 on the Implementation of Environmental Protection and Management (“Regulation 22/2021”), which addressed a wide range of aspects relating to environmental matters, including the applicable mechanism for the supervision and enforcement of the various provisions set under the framework of Regulation 22/2021, as well as the imposition of various sanctions for any acts of non-compliance.[1] It should be noted that the various obligations that feature under Regulation 22/2021 were previously summarized in the following edition of Indonesian Legal Brief (“ILB”): “Regulatory Framework for Environmental Protection and Management Updated”.