Abstract

Environmental degradation in Indonesia is increasingly driven by corporate activities, yet corporate criminal liability remains ineffective in delivering deterrence and ecological recovery. This reflects a structural gap between the normative objectives of environmental protection and enforcement outcomes, primarily due to fragmented liability standards and the dominance of fine-centered sanctions. This study aims to reformulate corporate criminal liability by integrating restoration-oriented sanctions and corporate compliance mechanisms into a coherent framework. Using normative doctrinal legal research, this study analyzes statutory regulations, legal principles, and comparative practices to identify structural deficiencies and construct prescriptive arguments. The findings reveal that the existing framework produces largely symbolic enforcement, characterized by limited attribution of corporate responsibility and the absence of mandatory restoration obligations. Financial penalties alone fail to deter misconduct or remedy environmental harm. This study argues that restoration-oriented sanctions reorient criminal punishment toward ecological recovery, while compliance mechanisms embed preventive accountability within corporate governance. The originality lies in advancing an integrated liability model that positions restoration and compliance as core elements of corporate criminal responsibility, contributing to an outcome-oriented approach to environmental criminal law and offering concrete directions for strengthening environmental governance in Indonesia.

There is no Figure or data content available for this article

References

• A. Aviram. “In Defense of Imperfect Compliance Programs”. Florida State University Law Review. vol. 32, no 2, 2025.
• A. Jiwanti. “Reorientation of Environmental Criminal Law Enforcement through the Formulation of Corporate Community Service Orders”. Journal of Multidisciplinary Research and Development. vol. 7, no. 2, 2025. https://doi.org/10.38035/rrj.v7i2
• A. O Ogedengbe, T. O Jejeniwa, H. O Olawale, S. C Friday, and M. N Ameyaw. “Enhancing Compliance Risk Identification Through Data-Driven Control Self-Assessments and Surveillance Models”. Shodhshauryam, International Scientific Refereed Research Journal. vol. 6, no. 4, 2023. https://doi.org/10.32628/SHISRRJ
• A. Sneideriene and R. Legenzova. “Greenwashing prevention in environmental, social, and governance (ESG) disclosures: A bibliometric analysis”. Research in International Business and Finance. vol. 74, 2025. https://doi.org/10.1016/j.ribaf.2024.102720
• A. W. Putra. “Environmental Restoration as a Principal Punishment in Indonesia Environmental Crimes: Restorative Justice in Formulation”. IOP Conference Series: Earth and Environmental Science. 2025. https://doi.org/10.1088/1755-1315/1537/1/012066
• B. Rasyidi, G. Nachrawi, & Juwita. “The Principle of Strict Liability in Prosecuting Environmental Criminal Actions by Corporations”. Jurnal Humaniorum: Jurnal Hukum dan Ilmu Sosial. vol. 1, no. 02, 2023. https://doi.org/10.37010/hmr.v1i02.13
• C. A. Pazvantoglu. “Ecocide as a Separate Crime under the Rome Statute: A Legal Analysis of the Discourse”. Environmental Policy and Law. vol. 55, no. 2-3, 2025. https://doi.org/10.1177/18785395251351171
• C. X. Antunez, R. N. Darmadji, & Z. Q. Mangundihardjo. “Reinforcing Corporate Accountability in Indonesian Environmental Law: A Dialectical Examination of Strict Liability and Criminal Sanctions”. Law Review. vol. 24, no. 1, 2024. http://dx.doi.org/10.19166/lr.v24i1.9675
• D. N. Maiviza and W. R. Kusumah. “Analysis of Internal Audit, Whistleblowing System and Organizational Culture in Fraud Prevention (A Case Study of PT Pos Indonesia)”. Journal of Accounting and Finance Management. vol. 6, no. 3, 2025. https://doi.org/10.38035/jafm.v6i3
• D. Puspitaloka, Y.Kim, and H.Purnomo. “Analysis of Challenges, Costs, and Governance Alternative for Peatland Restoration in Central Kalimantan, Indonesia”. Trees Forests and People. vol. 6, no. 2, 2021. https://doi.org/10.1016/j.tfp.2021.100131
• E. Berglof and S. Claessens. “Enforcement and Corporate Governance”. The World Bank Research Observer. vol. 21, 2004.
• E. H. Tarigan and Y. M. Saragih. “Corporate Criminal Liability in Oil and Gas Sector Crimes in Indonesia”. Jurnal Riset Rumpun Ilmu Sosial Politik dan Humaniora. vol. 3, no. 3, 2024. https://doi.org/10.55606/jurrish.v3i3.6475
• F. A. Ndaru. “Restorative Environmental Law Enforcement: Ensuring Environmental Restoration and Compliance Through Multiple Legal Instruments”. Asia Pacific Journal. vol. 10, no. 2, 2025. https://doi.org/10.21532/apfjournal.v10i2.379
• F. Castro, L. Leonori, & S. Giorgio. “A comprehensive review of literature on compliance function post-Basel III”. Journal of Financial Regulation and Compliance. 2025. https://doi.org/10.1108/JFRC-04-2025-0093
• G. M. Odhiambo, E. W. Waiganjo, and A. N. Simiyu, “Green Employee Training—A Remedy for Environmental Behaviour: The Case of Public Universities in Kenya”. European Journal of Business & Management Research. vol. 8, no. 5, 2023. https://doi.org/10.24018/ejbmr.2023.8.5.2142
• H. Harris. “Corporate Liability within the IACC Framework: A Proposal for Enhanced Corporate Accountability”. Transnational Criminal Law Review. vol. 2, no. 1, 2023. https://doi.org/10.22329/tclr.v2i1.7906
• I. Kvirikashvili. “The Duties under the Doctrine of Superior Responsibility: What Can We Learn from Business Standards on Corporate Governance & Compliance?”. German Law Journal. vol. 26, no. 4, 2024. https://doi.org/10.1017/glj.2024.66
• J. L. Short. “The politics of regulatory enforcement and compliance:Theorizing and operationalizing political influences”. Regulation & Governance. vol. 15, no. 3, 2021. https://doi.org/10.1111/rego.12291
• J. V. D. Heijden. “Competitive Enforcement: Comparative Analysis of Australian Building Regulatory Enforcement Regimes”. IOS Press, 2008.
• L. Andreisova. “Building and Maintaining an Effective Compliance Program”. International Journal of Organizational Leadership. vol. 5, no. 1, 2016. https://doi.org/10.33844/ijol.2016.60259
• L. Saipudin, Salim HS, Rodliyah, and L. Wulandari. “The Concept of Corporate Criminal Liability in The Indonesian Criminal Law System”. Jurnal IUS Kajian Hukum dan Keadilan. vol. 13, no. 2, 2025. http://dx.doi.org/10.29303/ius.v13i2.1817
• M. I. Budiarto and B. T. Bawono. “The Concept of Restorative Justice as an Alternative for Resolving Environmental Crimes Involving Corporations”. Ratio Legis Journal. vol. 3, no. 1, 2024.
• M. O. Alzwae and A. Aljahani. “Corporate Criminal Liability for Money Laundering in Light of International Standards: A Comparative Perspective”. Corporate Law & Governance Review. vol. 7, no. 4, 2025. https://doi.org/10.22495/clgrv7i4p4
• N. K. A. Sari. “Criminal Liability for Corporate Crime in Indonesia”. Al-Manhaj Jurnal Hukum dan Pranata Sosial Islam. vol. 5, no. 1, 2023. https://doi.org/10.37680/almanhaj.v5i1.2687
• R. Torodji, Hartwiningsih, I. G. A. K. R. Handayani, and M. Nur. “The Role of the Corporate Penalty System Environmental Regulation”. Journal of Human Rights, Culture and Legal System. vol. 3, no. 3, 2023. https://doi.org/10.53955/jhcls.v3i3.179
• R.Saputra, A. Usada, and M. S.Islam. “Ecological Justice in Environmental Criminal Sanctions for Corporations in Indonesia: Problems and Solution”. Journal of Law, Environmental and Justice. vol. 2, no. 1, 2024. https://doi.org/10.62264/jlej.v2i1.19
• S. Sangwa & M. Placide. “Compliance as the New Competence: How Obedience Cultures Erode Innovation and Leadership Ethics in Global Workplaces”. Open Journal of Stewardship Economics & Ethical Innovation. vol. 1, no. 1, 2025. https://zenodo.org/uploads/16576050
• T. Aven and O. Renn. “Improving Government Policy on Risk: Eight Key Principles”. Reliability Engineering & System Safety. vol. 176, 2018. https://doi.org/10.1016/j.ress.2018.04.018
• T. R. Zarzani, Ismaidar, and M. Sihombing. “Corporate Criminal Liability in Environmental Pollution Crimes”. International Journal of Sociology and Law. vol. 1, no. 3, 2024. https://doi.org/10.62951/ijsl.v1i3.101
• T. Y. Chandra and B. Sobirov. “Corporate Criminal Liability for Illegal Toxic and Hazardous Waste Dumping”. Jurnal Ilmu Hukum Asosiasi Pimpinan Perguruan Tinggi Hukum Indonesia. vol. 10, no. 1, 2023 https://doi.org/10.58829/lp.10.1.2023.123-140
• V. N. Xuan. “Determinants of environmental pollution: Evidence from Indonesia”. Journal of Open Innovation: Technology, Market, and Complexity. vol. 10, no. 4, 2024 https://doi.org/10.1016/j.joitmc.2024.100386
• Y. Fernando. “Corporate Criminal Liability in Environmental Cases”. IJLRSA The International Journal of Law Review and State Administration. vol. 3, no. 3, 2025.
• Y. Zhou. “Raising the deterrent effect of the U.S. deferred prosecution agreement: New perspectives on the U.S. from the U.K. and Jersey”. Journal of Economic Criminology. vol. 10, 2025. https://doi.org/10.1016/j.jeconc.2025.100189
• Z. Savasan. “Penalizing Environmental Harm: Merits, Limits and Alternatives”. Anadolu Universitesi Hukuk Fakultesi Dergisi. vol. 11, no. 2, 2025. https://doi.org/10.54699/andhd.1688562

How to Cite This

Article Metrics

Download Statistics

Other Statistics

Copyright and Permissions

This work is licensed under a Creative Commons Attribution 4.0 International License.

Authors who publish with Kosmik Hukum agree to the following terms:

1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License (CC BY) that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.

Data Availability