Corporate Liability for Extractive Activities Following the Constitutional Court Ruling on Mineral and Coal Mining

Abstract

This study examines the implementation of the precautionary principle in the mining licensing regime in Indonesia following regulatory reforms based on Law Number 3 of 2020 concerning Mineral and Coal Mining and Law Number 11 of 2020 concerning Job Creation. Although Article 33 (3) of the 1945 Constitution explains that natural resources should be managed optimally for the welfare of the community and also for environmental sustainability, extractive activities continue to pose a risk of environmental damage. The reforms discussed will explain the risk-based licensing system. Using normative juridical research methods with a statutory, case, and conceptual approach. This study also analyzes the Constitutional Court Decision Number 37/PUU-XIX/2021. The findings indicate that the precautionary principle is explicitly recognized in environmental law but only implicitly included in mining regulations through administrative obligations such as environmental approvals, reclamation guarantees, and post-mining responsibilities. While a risk-based approach theoretically aligns with preventive governance by imposing stricter requirements on high-risk activities, its effectiveness depends heavily on accurate risk classification, institutional capacity, public participation, and consistent oversight. Furthermore, the Constitutional Court's decision reaffirmed that business permits do not absolve corporations of responsibility for environmental damage and emphasized the state's constitutional obligation to ensure sustainable and accountable natural resource management.