Normative juridical analysis of strict liability in environmental cases

The Indonesian Supreme Court rejected the cassation and imposed a fine of IDR 199 billion on PT. Rambang Agro Jaya (RAJ), a subsidiary of Malaysia’s Kulim Berhad, for a 500-hectare forest and land fire case in Ogan Komering Ilir Regency, South Sumatra. This study aims to conduct a normative juridical analysis of the courts’ decision, holding PT. Rambang Agro Jaya was strictly liable for the environmental damage caused by the fire. The research reveals: (1) Central Jakarta District Court Decision No. 445/Pdt.G/2019/PN Jkt.Pst establishes strict liability and orders the Defendant to pay material losses totaling IDR 137.57 billion. (2) Jakarta High Court Decision No. 398/PDT/2021/PT DKI upholds the Central Jakarta District Court’s decision, reinforcing strict liability and increasing the total compensation to IDR 199.57 billion. (3) Supreme Court Decision No. 2196 K/PDT/2022 rejects PT. Rambang Agro Jaya’s cassation confirmed the Defendant’s unlawful actions and strict liability and imposed a material loss compensation of IDR 199.57 billion. The rulings signify a progressive step in enforcing environmental responsibility, with the substantial fine signaling a strict stance against ecological violations. The Supreme Court’s consistent rejection of cassation strengthens legal certainty and establishes a robust legal precedent for similar future cases, and underscores the significance of corporate accountability in promoting environmental sustainability.