Legal Consequences of PT Jogja Magasa Iron’s Negligence in Implementing Social and Environmental Responsibility

Abstract

Corporate Social and Environmental Responsibility (CSR) in Indonesia has shifted from a voluntary concept to a mandatory legal obligation, particularly for companies exploiting natural resources, as regulated under Law No. 40 of 2007 on Limited Liability Companies, Law No. 25 of 2007 on Investment, Government Regulation No. 47 of 2012, and Law No. 3 of 2020 on Mineral and Coal Mining. Building on this regulatory framework, this study examines the legal consequences of corporate negligence in implementing CSR, focusing on PT Jogja Magasa Iron (PT JMI) in Kulon Progo Regency. Using a normative-empirical legal research method, the study analyzes statutory regulations, legal doctrines, and empirical data from interviews with local government officials. The findings indicate that failure to implement CSR constitutes a violation of mandatory legal norms and may result in administrative, civil, and criminal liability. Nevertheless, the impact of these legal consequences is often mitigated by weak supervision, including insufficient monitoring mechanisms, unclear regulatory responsibilities, and inconsistent law enforcement, which collectively hinder effective implementation. Accordingly, this study concludes that stronger legal certainty, stricter sanctions, increased clarity in oversight responsibilities, and active government monitoring are essential to ensure CSR contributes to social justice and sustainable development.