Sunday, December 10, 2023

Minister Luhut warns nickel factories to comply with laws and regulations, threatens to revoke permit

Reading Time: 2 minutes
Mahinda Arkyasa




Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, was giving a strict warning to nickel smelter facility management companies to operate in accordance with existing regulations, including environmental standards.

In fact, Luhut emphasized that he is not hesitant to close down a factory or even revoke its operational permit if the company does not conduct its business in compliance with environmental standards and regulations.

“We remind them, if they do not comply with the standards, international standards for the environment, shut down the industry,” Menko Luhut stated at the Indonesia Sustainability Forum (ISF) at Park Hyatt Jakarta on Monday, September 11, 2023.

Luhut mentioned that the cost of preserving the environment is insignificant compared to the total investment of the company. He explained that the cost of maintaining environmental sustainability is “only” about US$ 10 million, compared to the total investment of the company, which is approximately US$ 1-2 billion.

A call to comply with laws and regulations

Previously, Luhut had urged all parties, especially from the business sector, to adhere to regulations in Indonesia, especially in four areas: labor, technology transfer, environmental sustainability, and increasing the value added to the industry.

“They must comply with this; if investors do not comply, then we will stop operations in Indonesia. Indonesia will review this industry,” he stated in the ‘Nickel Conference 2023’ by CNBC Indonesia on Tuesday, July 25, 2023.

Luhut mentioned that the government will re-evaluate the six strategic nickel industrial areas in Indonesia. If there are violations, the government is not hesitant to impose sanction.

Based on the data Luhut presented, here are some sanctions that will be imposed on companies for violations of prevailing laws and regulations rules:

  • If they violate noise standards, they may face a maximum penalty of 3 years in prison and a maximum fine of Rp 3 billion.
  • Intentional water pollution could result in a maximum prison sentence of 10 years and a maximum fine of Rp 10 billion.
  • Processing hazardous and toxic waste (B3) that does not comply with regulations may lead to a minimum of 1 year and a maximum of 3 years in prison, as well as a fine of at least Rp 1 billion and up to Rp 3 billion.
  • Disposing of waste without permission may result in a maximum prison sentence of 3 years and a maximum fine of Rp 3 billion.
Mahinda Arkyasa






We will provide you with an invoice for your reimbursable expenses.


New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.


$550 USD/Year


$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email

Add keywords to your market watch and receive notification:
Schedule a free consultation with us:

We’ll contact you for confirmation.


The Attorney General’s Office questioned Acep Jamhuri, Secretary of Karawang Regency, in a corruption case tied to Army Housing Mandatory Savings (TWP AD) for 2019-2020
The $30 billion legacy initiative in East Kalimantan faces uncertainty due to the revelation that several foreign investment commitments have not materialized, sparking speculation about overseas skepticism.
PT Perusahaan Listrik Negara (PLN) has successfully secured four significant agreements aimed at expediting the incorporation of renewable energy sources during the United Nations Climate Change Conference, COP 28, held in Dubai, United Arab Emirates over the past weekend.
PT Indonesia Stock Exchange (BEI) recently announced PT Waskita Karya Tbk (WSKT) to be removed from the stock exchange or delisted which has a direct impact on investors.
The National Council of Special Economic Zones (SEZ) has given the green light for the creation of three new SEZs—Setangga, Tanjung Sauh, and Nipa, in an effort to boost economic development. 
The Association of Southeast Asian Nations (ASEAN) spans an incredibly diverse geography, covering approximately 4.5 million square kilometers, making it one of the world’s largest regional organizations in terms of landmass.