Issue : Environmental Law
Title : Analisa Law and Economics atas Kompensasi dan Asuransi Lingkungan di Indonesia: Sebuah Kritik atas Kompensasi Tanpa Sistem
Author : Andri G. Wibisana & Pramita K. Putri
Abstract : Compensation mechanisms and liability are an important part in environmental management. Compensation, through liability or other mechanisms, provides not only protection for the victims of environmental damage, but also incentives for the potential polluters to take an ex-ante optimal level of care. Ideally, compensation should be first provided through liability (combined with liability insurance). If this system does not work properly, alternatives to liability insurance, i.e. risk-sharing agreement, first-party insurance, and environmental damage insurance, should be developed. Finally, the system of compensation funds should also be promoted whenever liability system, liability insurance, and alternatives to liability insurance are likely to fail to provide enough protection for the victims and incentives to take care for the potential polluters. Unfortunately, compensation in Indonesia is ill-structured, leaving the victims with tort law as the only way to get compensated. The Sidoarjo mudflow case clearly illustrates the impacts of such an ill-structured compensation system. Theoretically, this situation will be improved, as the new environmental act has acknowledged several alternatives for compensation mechanism.
Year : 2009
Journal : Jurnal Hukum dan Pembangunan Vol. 39 No. 4 (2009)
Language : Bahasa Indonesia
Link : http://jhp.ui.ac.id/index.php/home/article/view/289