Ministry of Environment and Forestry v. PT Asia Palem Lestari

Summary:

On September 09th, 2019, the Indonesian Ministry of Environment and Forestry (the MoEF) filed a tort-based lawsuit against a corporation PT Asia Palem Lestari had intentionally set fires to clear the peatland for palm oil plantation. Furthermore, the MoEF also argued that defendant’s fires preventive facilities did not meet the requirements as regulated in Articles 12, 13, and 14 Indonesian Governmental Regulation No. 4 of 2021. The MoEF argued that fires inside the peatlands led to ecological and economic damages amounting to IDR 173.721 billion. In relation to climate change, the MoEF claimed that the fires had contributed to the release of 2700 tC and a loss of function of carbon sinks which equal to 945 tC. Since the cost of released carbon is IDR 90.000 (equals to US$ 10), the MoEF requested the court costs of the released carbon and restoration amounting to IDR 328.050.000.

The MoEF filed this lawsuit under strict liability rule of Articles 88 Environmental Protection and Management Act (the 2009 EPMA).

On January 5th, 2021, the District Court of North Jakarta ruled that the lawsuit should be dismissed due to a lack of parties (plurium litis consortium). The judges found that the area in which the MoEF referred in its lawsuit were also owned by other people. Hence, the plaintiff should have included these people—who were also the owner of the burned land—in the lawsuit.

At Issue: Restoration for climate damage caused by palm plantation land clearing.