Minister of LH: Fines do not eliminate the obligation of companies to restore the environment

JAKARTA - Minister of Environment (LH) Hanif Faisol Nurofiq emphasized that sanctions in the form of fines do not remove the obligation of companies to restore the environment affected by their business, including in relation to the alleged cause of the flood in South Kalimantan in December 2025 to January 2026.

Hanif said that although a number of companies had paid fines, Law Number 32 of 2009 emphasized that the obligation to fully carry out environmental restoration must be carried out.

"Environmental recovery measures must be integrated into environmental documents even if the fine has been paid," he said during a working visit to Banjarbaru, South Kalimantan, Thursday, April 9, as reported by ANTARA.

In South Kalimantan, KLH audited around 182 companies that were suspected of contributing to flooding in several areas.

Hanif explained that although some companies in South Kalimantan and other areas had paid fines, their identities were not announced to maintain credibility in accordance with legal provisions.

"Non-tax State Revenues (PNBP) from environmental sanctions also exceeded the target. From the target of Rp. 445 billion in 2026, the realization of deposits has reached Rp. 1.4 trillion, mainly from companies in South Kalimantan, as well as other provinces that are being charged with environmental recovery and loss costs," he said.

Hanif emphasized that the entire environmental recovery process could not be replaced by paying a fine. Even though they have paid a fine, the company still has to carry out a thorough recovery in accordance with the environmental agreement that has been established.

In addition, he reminded the importance of integrating environmental recovery in official company documents, because this is crucial to ensure that every rehabilitation effort is recorded and legally supervised so that there is no abandonment of responsibilities in the field.

Until now, KLH continues to monitor the development of environmental recovery through coordination with local governments, including in South Kalimantan.

"This step is important so that all recovery activities can be carried out according to plan, effectively, and have a real impact on environmental quality," said Hanif.

Regarding the exact number of companies that have been sanctioned by the KLH, the Minister of LH did not mention it and only confirmed that the number was large, but the main focus was on ensuring environmental recovery and the implementation of strict legal sanctions.

"The number is quite large, but the most important thing is that real steps to restore the environment are being carried out," he said.