Minister of Environment/Environmental Control Agency Regulation Number 6 of 2026 Regulates Central Government Intervention and Reform of Environmental Administrative Sanctions

Introduction

On 25 May 2026, the Ministry of Environment/Environmental Control Agency issued Minister of Environment/Environmental Control Agency Regulation Number 6 of 2026 on Environmental Supervision and Administrative Sanctions (“MOE/ECA Regulation 6/2026”), which took effect on 15 June 2026. Developments in environmental policy and environmental management practices that are increasingly dynamic have necessitated the revision of Minister of Environment and Forestry Regulation Number 14 of 2024 on the Administration of Environmental Supervision and Administrative Sanctions (“MOEF Regulation 14/2024”) in order to improve the effectiveness, legal certainty, and relevance of its regulatory framework. The Government considers it necessary to harmonize the regulation with the framework established under Government Regulation Number 28 of 2025 on the Administration of Risk-Based Business Licensing (“GR 28/2025”), while simultaneously strengthening the environmental supervision and enforcement system through the standardization of more integrated and risk-based mechanisms.

In addition, the Government considers that the supervision and administrative sanction instruments under the previous regulation were not fully capable of accommodating the level of risk arising from potential environmental pollution and environmental damage. Accordingly, this regulation has been enacted to strengthen the effectiveness of supervision and compliance by businesses through the standardization of clearer, measurable, proportionate, and risk-based criteria for the imposition of administrative sanctions, thereby encouraging more responsible environmental management practices and enabling more responsive, systematic, and integrated mitigation of environmental pollution and environmental damage risks.

Comparison

MOE/ECA Regulation 6/2026 revokes and replaces MOEF Regulation 14/2024. The following comparison table sets out the key differences between MOE/ECA Regulation 6/2026 and MOEF Regulation 14/2024:

Key Provisions

Distribution of Environmental Supervisory Authority

Pursuant to Article 2, supervisory jurisdiction is determined based on the authority that issued the Environmental Approval, Business License (“PB”), or Government Approval:

• Minister/Head of BPLH: Authorized to supervise businesses whose Environmental Approvals or Business Licenses are issued by the Central Government, as well as compliance with environmental laws and regulations generally.
• Governors, Regents, and Mayors: Responsible for supervising businesses and/or activities whose environmental approvals or business licenses are issued by their respective regional governments.
• Special Areas (IKN Authority and KPBPB): The Head of the IKN Authority and the Head of the KPBPB Administrative Agency (such as Batam and other free trade and free port areas) are granted full authority to supervise businesses within their territorial jurisdictions.

Central Government Intervention Rights and Takeover of Authority Due to Serious Violations

Pursuant to Article 4, the Minister/Head is entitled to supervise businesses whose licenses were issued by regional governments if indications of a “serious violation” are identified. Such serious violations include actions resulting in large-scale environmental pollution or environmental damage, causing public concern, or circumstances where the regional government is deemed negligent or has failed to conduct supervision altogether.

In addition to direct intervention, Article 5 permits the Minister/Head to assume supervisory authority upon a written request from a regional government facing enforcement deadlock or obstacles, provided that the request is accompanied by official reports and previous supervisory findings.

Standardization of Supervisory Planning Stages

Pursuant to Articles 6 and 7, the supervisory process is divided into two main stages, namely planning and implementation. During the planning stage, supervisory authorities are required to conduct a business data inventory by collecting business profiles, compliance records, environmental documentation ownership, and company PROPER rating histories. All such databases are electronically integrated with the Online Single Submission (“OSS”) System to ensure data validity and transparency.

Changes to the Types and Structure of Administrative Sanctions for Businesses

Under Article 38, the types of administrative sanctions now include Written Warnings, Government Coercive Measures, Administrative Fines, Suspension of Business Licenses, and Revocation of Business Licenses. Of particular significance for businesses is the removal of the obligation for supervisors to apply sanctions progressively or in stages.

Furthermore, under Article 40, supervisory authorities are empowered to impose government coercive measures or suspend operational licenses where the violations committed by a company are classified as high-risk violations to environmental sustainability.

Criteria and Conditions Triggering the Direct Imposition of Sanctions

Article 40 paragraph (2) regulates circumstances that may trigger the immediate imposition of severe administrative sanctions without any grace period. These circumstances include:

• Repeated commission of the same minor violation more than two (2) times based on the compliance history;
• Violations posing a serious threat to human beings and the Environment;
• Violations causing greater and more extensive impacts if Environmental Pollution and/or Environmental Damage are not immediately halted; and/or
• Violations resulting in greater losses to the Environment if Environmental Pollution and/or Environmental Damage are not immediately halted.

Government Coercive Measures may take the form of:

• Temporary cessation of production activities;
• Relocation of production facilities;
• Closure of wastewater discharge or emission outlets;
• Demolition;
• Seizure of goods or equipment potentially causing violations;
• Temporary suspension of part or all of the Business and/or Activities;
• Preparation of environmental documents; and/or
• Other measures aimed at terminating violations and restoring environmental functions.

Imposition of Administrative Fines for Activities Inconsistent with Existing Licenses

Article 45 paragraph (2) expands the circumstances under which administrative fines may be imposed, namely where a business undertakes changes to activities that are inconsistent with the Business License held. Such changes include modifications to technical specifications, production equipment, raw materials, auxiliary materials, or business facilities that affect the environment, expansion of business areas and/or activities, and the addition of business types and/or activities.

This provision emphasizes that any change with the potential to alter the level of risk or environmental impact must first be aligned with the applicable licensing requirements. For businesses, operational changes undertaken without fulfilling the required licensing obligations may constitute grounds for the imposition of administrative fines, notwithstanding that the business activity has previously obtained the necessary licenses.

Right to File Objections Against Administrative Sanctions

Pursuant to Article 66, the Person Responsible for a Business and/or Activity may file an objection against the Administrative Sanction decision imposed upon them. Such objection must be submitted to the competent authority within its respective jurisdiction, namely the Minister/Head of BPLH, Governor, Regent/Mayor, Head of the IKN Authority, or Head of the Batam KPBPB Administrative Agency. This mechanism provides businesses with an opportunity to seek reconsideration of the administrative sanction imposed and ensures an accountable and equitable enforcement process.

Article 67 regulates the procedures for filing objections against administrative sanctions. The Person Responsible for a Business and/or Activity is granted a maximum period of seven (7) days from receipt of the sanction decision to submit an objection to the authority that issued the sanction. The objection must contain the applicant’s identity, information regarding the disputed sanction decision, a description of the grounds for objection, and supporting evidence. Objections may be submitted directly or through an electronic system.

However, if an objection is submitted after the prescribed deadline, the application shall be inadmissible and will not be processed further. Specifically for objections against administrative fines, the implementation procedures shall follow the applicable laws and regulations.

Closing

MOE/ECA Regulation 6/2026 regulates the expansion of supervisory authority to special areas such as the IKN and SEZs, the allocation of supervisory jurisdictions, the standardization of planning stages integrated with the OSS system, and a central government intervention mechanism under which the Minister is entitled to assume supervisory authority from regional governments where indications of serious violations are identified. In addition, businesses are granted the right to file objections against sanction decisions issued by the relevant authority within a maximum period of seven days from receipt of the decision.