Polluter Pays Principle in Environmental Dispute Resolution: An Analysis of Liability for Compensation and Environmental Restoration

Abstract

The Polluter Pays Principle (PPP) is a fundamental principle of environmental law that places responsibility for environmental pollution and/or damage on the party causing the harm. In environmental dispute resolution, the application of PPP extends beyond compensation for injured parties to include the obligation to restore damaged environmental functions. This study aims to examine the regulation of PPP in environmental dispute resolution in Indonesia, analyze its application in judicial reasoning in environmental dispute decisions, and assess the extent to which its implementation reflects polluter responsibility for both compensation and environmental restoration. This study employs a normative juridical method using statutory, case, and conceptual approaches. Legal materials were obtained through library research, including legislation, court decisions, scientific journals, books, and previous studies, and were analyzed using a qualitative-descriptive approach. The findings demonstrate that PPP has a legal basis under Indonesia’s Environmental Protection and Management Law (UUPPLH), particularly through provisions concerning compensation, specific remedial measures, and strict liability. Judicial decisions indicate that polluter liability may encompass both monetary compensation and environmental restoration. Nevertheless, its implementation remains suboptimal due to challenges in calculating ecological losses, determining the appropriate amount of compensation, and enforcing environmental restoration. Therefore, the implementation of PPP requires further strengthening to ensure that polluter liability adequately addresses both the economic and ecological dimensions of environmental damage.