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ABSTRACT
The volcano mudflow of 2006 in Sidoarjo, East Java was one of the most devastating
environmental disasters in Indonesia. Many argue that it was the failure of PT. Lapindo
during the drilling process but the verdict of the District Court of South Jakarta decided
that it was a natural disaster. Environmental crime provision is stated in The Environmental
Management Act 2009 No. 32 but this stipulation does not reduce the number of corporate
environmental crimes as there are other factors involved such as enforcement. The
protection of people’s environmental human rights is also recognized under The Law
of 1999 No. 39 on Human Rights. Regrettably, prosecuting corporate environmental
crime from the angle of human rights is at a dead-lock due to the fact that the Indonesian
Human Rights Court is only authorized to prosecute genocide crimes and crime against
humanity. Nevertheless, the corporate sector should take the responsibility to restore the
ecosystem where disasters have occurred. In view of this gap, some primary data, like
statutes, regulations and international conventions; also secondary data such as articles,
reports and news papers have been obtained from literature study and internet sources
and are descriptively and qualitatively analyzed. This article aims to rationalise that the
jurisdiction of the Indonesian Human Rights Court should include environmental crime
in The Law of 2000 No. 26 in Human Rights Court and provide output for the decision
makers in Indonesia to consider that environmental crime is a crime against humanity.
Keywords: Corporate crime, corporate liability, environmental pollution, environmental human rights, Indonesia
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Corporate Responsibility for Environmental Human Rights Violation: A Case Study of Indonesia
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Achmad Romsan and Suzanna Mohammed Isa
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Corporate Responsibility for Environmental Human Rights Violation: A Case Study of Indonesia
prosecutors, judges and civil service police pay compensation for submerged properties
(PolisiPamongpraja), who are not able to within the well-drilling area. The damaget
work properly and professionally due to lack outside the drilling area was not under
of facilities when they are on duty and small the responsibility of PT. Lapindo but the
salaries.21Additionally, the human resource Government of Indonesia.23
in law enforcement is not compatible to the Many24 argue that the volcano mudflow
vast area of Indonesia and the last factor which emanated in 2006 was due to PT.
is the legal culture of the society which Lapindo’s failure during the drilling process
sometimes is contradictory to the objective and should be regarded as a corporate
of the law, for example: bribery, corruption, crime as regulated under Article 46 of
and carrying knifes etc and so forth. In short, The EMA 1997 No. 23 on Environmental
the entire situation above affects the process Management25 which stipulates:26
of environmental conflict resolution. 1. If the offense referred to in this chapter
is conducted by or on behalf of the
VOLCANO MUDFLOW IN corporation, company, association,
SIDOARJO EAST JAVA INDONESIA:
IS IT A CORPORATE CRIME? foundation or other organization,
criminal charges are made and criminal
According to the South Jakarta District
sanctions and procedural measures
Court,22 the volcano mudflow in Sidoarjo
referred to in Article 47 shall both
East Java is a natural disaster and not an
be imposed against the legal entity,
unlawful act (perbuatan melawan hukum)
company, association, foundation or
of PT. Lapindo’s staff during the drilling
other organizations concerned and
process under Article 1365 Indonesian
to those who gave orders to commit
Civil Code. The geologists’ statements
criminal acts or the one who acts as the
during the proceedings were used as strong
leader in the act or to both of them.
evidence for the Judge’s verdict. Based
on the Presidential Decree No. 14 of 2007 2. If the offense referred to in this Chapter,
and Presidential Decree No. 48 of 2008 is conducted by or on behalf of the
all the damaged infrastructures, railways, corporation, company, association,
telephone lines, power lines, gas pipe lines, foundation or other organizations,
school buildings, community health centres and performed by people, either in
(puskesmas) were to be-constructed and employment or other relationships,
financed by the state budget (Anggaran which act within the legal entity,
Perbelanjaan Negara/APBN). The cost for company, association, foundation or
reconstructing the infrastructure is more other organization, criminal charges are
expensive than paying compensation to made and criminal sanctions imposed
the victims. The Court also ordered PT. on those who give orders or act as a
Lapindo, based on humanity reasons, to leader regardless if they are the people,
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Achmad Romsan and Suzanna Mohammed Isa
or the employees who committed the another pollution case, for example, the
crime individually or collectively. Buyat case, North Sulawesi, Indonesia. The
3. If charges are made against a legal entity, marine environment of a bay was found to
company, union or other organization, be polluted by mercury eight years later, in
calls for court summons and the call 2004, after the first dumping of mine waste
letters were delivered to the address of activities of the Newmont Corporation
the board in their residence, or where in 1996.29 Whilst in the Way Seputi River
the board does their daily work. case in Lampung, southern part of South
Sumatra, the quality of the river was
The weakness in Walhi’s claim with polluted in less than a year.30 In the case of
regard to the element of fault attached Sidoarjo, the victims were mostly peasants
to Article 1365 of the Indonesian Civil who did not have resources, like money,
Code for environmental compensation power and knowledge. If they were required
odds with Article 46 of the EMA 1997. to prove that their economic loss was due
Article 1365 of the Civil Code is a popular to the fault arising from the failure of PT.
article which regulates the unlawful acts Lapindo, this would put them in a quandary.
(perbuatan melawan hukum) where due Further development understanding of
to one’s fault others are harmed and an unlawful act is not only contrary to law
therefore compensation must be given. and the rights of other parties but also may
The fault element of the doer is necessary include any act contrary to appropriateness
for the plaintiff to prove in order to claim that must be considered in the association
compensation under Article 1365. If the of the community in conjunction with
fault element is used in claims relating to a personal or property of others. 31 This
environmental pollution it would be very principle is identified as a ‘no liability
difficult to be proven since pollution and without fault,’ a principle which was popular
environmental degradation do not occur and dominated the law of compensation in
immediately but can only be gradually the common law up to the 19 century.32 In
seen in the future. Besides the extent the mid 19 century, however, the principle
of the pollution is also uncertain. There above was not regarded as the sole principle
are a number of parameters and factors applied in compensation matters. Rabin said
surrounding the occurrence of such pollution that “the concept of negligence as a basis for
that depletes environmental quality. For determining liability in cases of inadvertent
example food supply, climate, hatch date, harm was used to pre-existing notions
body size, reproductive output and so forth of moral blameworthiness underlying
as in the studies conducted by Cooch, liability for international harms to create a
Lank, Rockwell and Cooke,27 and William, comprehensive theory of liability based on
Cooch, Jefferies and Cooke.28 One case of fault.”33 There is an erosion of fault from
pollution will be able to be a reference for the victim to the doer or from principles of
116 Pertanika J. Soc. Sci. & Hum. 22 (S): 111 - 130 (2014)
Corporate Responsibility for Environmental Human Rights Violation: A Case Study of Indonesia
‘no liability without fault’ to ‘liability based Straits in 1975 in a suit for environmental
on fault’. This has evolved a new principle compensation. Indonesia as the victim
of compensation which latter on became had to prove that the polluted marine and
popular with ‘strict liability’ which is an ecosystem of the eastern coast of Sumatra
appropriate principle used in environmental was due to the fault of Showa Maru’s
matters, such as pollution and environmental captain. Mean-while, in the case of Sidoarjo
degradation.34 The strict liability principle volcano mudflow, PT. Lapindo as the
there-fore reincarnates in the Indonesian plaintiff had submitted expert geologists’
Environmental Management Act (EMA), statements to defend itself, whilst Walhi
for example Article 20 of The EMA 1982, provided statements from environmental
35
Article 35 of The EMA 1997 No. 23,36 and law experts who referred to corporate
Article 88 of The EMA 2009 No. 32.37 crimes under Article 46 of the EMA 1997,
The shifting of burden of fault from the newspaper clippings and news reported on
victim to the doer will lighten the people’s TV that the judge considered as informal
encumbrance when the cases are brought to legal evidence according to the Indonesian
Court.38Since there is no case to which the Penal Proceeding Code.44 The situation was
Indonesian Judges have referred to strict made worse when two tests on the mud
liability as regulated in the EMA, therefore characteristic conducted by different labs
the reference to the US Courts where showed different resulst. The first test lab
strict liability principle has been used in (belonging to the Government) showed that
environmental-related cases such as Atlas the mud was non-toxic while the second test
Chemical Industries Inc. v. Anderson, 39 lab (a public university lab)illustrated that
Phillips Petroleum Co. v. Hardae,40 Burn the mud was toxic. In this context, there is
v. Lamb, 41 and Biakanja v. Irving. 42 In a “Blackstone ratio” which is 10:1 derived
England this principle was applied in Ryland from idiomatic expression in criminal law
v. Fletchercase (1887). In the renowned introduced by William Blackstone in his
case of Ryland v. Fletcher (1887) the court Commentaries on the Law of England
decided that a person who brings dangerous published in 1760s “better that ten guilty
substances onto his property and allows persons escape than that one innocent
them to escape to adjoining land resulting in suffers.”45 Under this condition, the judge
damage there will be held strictly liable. The freed the alleged perpetrator although many
defendant was thus liable for damage caused research findings claimed that it was not a
by the escape of water from a reservoir on natural disaster but failure or negligence
his land.43 committed by PT. Lapindo. Nevertheless,
In relation to Article 1365 of the Civil PT. Lapindo was still held responsible for
Code proved to be the stumbling block in restoringthe environment in the affected
the case of the oil spill caused by the Super areas.
Heavy Tanker Showa Maru in the Malacca
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Achmad Romsan and Suzanna Mohammed Isa
a minor accident and not a corporate crime.58 Stockholm Declaration 1972 on Human
Many factors hamper law enforcement Environment61 and The Rio Declaration on
in Indonesia. As a developing country Environment and Development62 has been
Indonesia has less stringent environmental implemented into regional63 and national
standards than industrialized countries.59 laws. Among the 55 countries,64 Indonesia
It is more profitable for investors since has adopted environmental rights into her
Indonesia does not require compliance to Environmental and Human Rights Laws65
strict environmental standards. Investment and also in the Second Amendment of The
regulations which provide incentives Constitution 1945. Thus, the notion of a good
like tax holiday or grace period, BOT and healthy environment is constitutional
(Build, Operate and Transfer) and other rights and legal rights, respectively, which
facilities etc.,are open for negotiation and the State has prioritised to secure and protect
would certainly attract many investors their citizens. Placing environmental human
to Indonesia. Economic calculations can rights values into a national constitution is a
easily compute the financial rewards of strong indicator of national opiniojuris and
non-compliance to current environmental represents the highest level of national law
laws and the administrators can easily be operating as a lexsuprema.66
bribed to smoothen the bureaucratic chain As stated above, in Indonesia the right
and facilitate escape from penalties. The to a good and healthy environment has been
supremacy of law will seriously be in guaranteed under the EMA 1982 No. 4 and
jeopardy if the administrators continued EMA 1997 No. 23. However, this legal right
to treat industry as paramount and has no further explanation either in the text
environmental degradation and pollution or in the elucidation of the provision. It was
as the price the locals have to pay.60 just recently after the Reformation in 1998
that environmental rights was integrated
IS CORPORATE ENVIRONMENTAL into human rights law, such as point (a) of
CRIME A CRIME AGAINST the Consideration of The EMA 2009 No.
HUMANITY? 32 which was implemented into Article
Discussing environmental crimes from the 3 where the objectives of environmental
human rights’ perspective is something management is, inter alia, to guarantee
new in Indonesia, although the notion the fulfilment of the protection of rights
of incorporating environ-mental rights towards the environment as a part of
into human rights values has been human rights. The environmental human
acknowledged in The EMA 2009 No. 32 rights in Article 9(3) of The Law No. 39 of
and The Law 1999 No. 39 on Human Rights. 1999 on Human Rights67 stated that “the
Political manifestation of the international right to a good and health environment is
community toward the human environment part of human rights, especially the right
and development as mandated by The to life”. Thus, in legal terms, a violation
Pertanika J. Soc. Sci. & Hum. 22 (S): 111 - 130 (2014) 119
Achmad Romsan and Suzanna Mohammed Isa
to environmental rights is also a violation Other scholars, like Hill, Wolfson and
to human rights68 and the offender may Targ75 and Appattu76 opined that “marrying”
taken to Human Rights Court. Regrettably, environmental value to human rights is a
environmental human rights violation does slow emergence of the idea that humans
not come within the purview of the Human have a basic right to a healthy environment.
Rights Court as it only prosecutes gross It will achieve a higher degree of relevance
human rights violation including genocide because the environment is everyone’s
and crime against humanity.69 This situation backyard.77No one can escape the human
is similar to the European Human Rights consequence of environmental degradation
Court prior to The Stockholm Declaration and human society cannot function
1972. Many environmental cases submitted independently of the natural environment.78
to this Court were rejected. 70 After the Other scholars, for instance Ruppel 79
Stockholm Declaration, the Commission reviewed environmental problems from
realized that there was correlation between the angle of the third-generation of human
environmental rights violation with human rights or solidarity rights and there is a close
rights, especially the right to life.71 Human relationship between human rights violation
beings cannot live in a polluted environment to the impairment of environment.80Giorge
and human survival depends on the quality tta81claimed that sustainable development
of the environment.72 could not be realized if the implementation
Integrating environmental rights of such development programs always
into human rights values is important, as impairs environmental rights. Chen and
Kesentini73 declares in her report that “… Dong 82 discussed environmental rights
human rights and the environment… [are] from the perspective of development
equally important to establish the legal without impairing the environment called
framework for pursuing what have become “eco-development” and concluded that
the essential demands of this century, in environmental rights might become a
order to take up the legitimate concerns of safeguard and defend human rights and
our generation, to preserve the interests of ultimately facilitate producing better
future generations and mutually to agree conditions of life on earth by stretching
upon the components of a right to a healthy and expanding the theory of traditional
and flourishing environment.” Mohammed human rights.
Sahnoun74 has acknowledged in his report A dilemmatic problem in the
about the linkage between human rights implementation of environmental human
matters and the environment by fostering rights into the national law of developing
global awareness of complex, serious and countries is frequently the question of
multidimensional nature of environmental sacrificing the environment and human
problems and attention is being focused more rights to overcome economic backwardness.
and more on environmental deterioration. The international community has responded
120 Pertanika J. Soc. Sci. & Hum. 22 (S): 111 - 130 (2014)
Corporate Responsibility for Environmental Human Rights Violation: A Case Study of Indonesia
this trade-off with the third generation The supremacy of law is in a quandary
of human righst which includes amongst if the administrators continue to treat the
others a healthy environment and right to industry as paramount and environmental
development.83 Regrettably, the developing degradation and pollution as the price the
countries respond to this by paying less people of Indonesia have to pay.
attention to environmental standards Corporate environmental crimes should
than industrialized countries. Strict be viewed as human rights violation under
environmental laws are not often enforced the right to life. By extending the purview
in developing countries like Mexico, of the Human Rights Court to include
Brazil, the Philippines and Indonesia who environmental pollution and environmental
have a long-standing reputation for being degradation as an element of human rights,
‘soft’ in regulating environmental issues.84 not only can this matter be addressed, it can
Many85argue that the real problem originates also inculcate a healthier corporate attitude
from the lack of motivation of administrators towards the environment and the citizens
to enforce environmental law. In reality, in of earth.
Indonesia many issues are problematic and
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