Ministry of Environment and Forestry v. PT Kalimantan Lestari Mandiri

On December 31, 2018, the Indonesian Ministry of Environment and Forestry (the MoEF) sued a palm oil plantation for fires occurring inside the PT Kalimantan Lestari Mandiri concessions. The MoEF claimed that the defendant intentionally burned the land to clear and use it as the new crop field for palm oil. The plaintiff also claimed that the defendant infringed various obligations to prevent and control fires within the concession. The plaintiff mentioned that strict liability is the basis for defendant’s liability. The MoEF asked the court to declare the defendant liable for the damages and restoration costs for fires. Due to fires inside the defendant’s-controlled area, the MoEF then sought compensation of IDR 337.365.000 for carbon release and IDR 118.078.00 for the loss of carbon sinks. On May 8, 2019, the District Court of Kuala Kapuas ruled that the defendant liable for damages caused by fires. The judges also granted the plaintiff request for the restoration and damages costs. On April 1st, 2020, the Court of Appeal rejected the appeal from the defendant and upheld the district court rulings.