Ministry of Environment and Forestry v. PT Rambang Agro Jaya

Summary:

On August 1st, 2019, the Indonesian Ministry of Environment and Forestry (the MoEF) filed a tort-based lawsuit against a corporation PT Rambang Agro Jaya for damages caused by fires in the peatlands. The MoEF argued that PT Rambang Agro Jaya drained the peatlands for the purpose of palm plantation which resulted in fires inside the defendant’s concession area. Furthermore, the MoEF also argued that the defendants had failed to fulfill its obligation to prevent any fires inside its concessions. The MoEF added that these unlawful acts caused damages on ecosystem and the peatlands. Hence, the MoEF sought compensation for all the damages and restoration costs amounting to IDR 199 billion. For the climate damages, the MoEF argued that the fires had contributed to the release of 2,250 tC and a loss of function of carbon sinks which equal to 787.5 tC. Since the cost of each 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 273.375.000.

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

On January 11th, 2021, the District Court of Central Jakarta ruled in favor of the plaintiff and decided that the defendant was strictly liable. However, the judges did not grant the damages with the same amount as the plaintiff requested. The District Court of Central Jakarta decided to grant the damages and restoration costs as high as IDR 137 billion.

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