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Environmental economic instruments and sustainable development

Author: 
Dr. Sadino, S.H. M.H. and Dr. Suartini, S.H., M.H.
Subject Area: 
Social Sciences and Humanities
Abstract: 

From Constitution Number 32 of 2009 about concerning Environmental Protection and Management regulates environmental economic instruments and regulations under them which are grouped under control measures, especially in the context of preventing environmental pollution and/or damage. The Constitution give the mandates "in order to preserve environmental functions, the government and regional governments are required to develop and implement Environmental Economic Instruments including: development planning and economic activities; Environmental Funding; and incentives and/or disincentives". With economic instruments it is intended that environmental management in Indonesia is able to run effectively and efficiently, fulfill the precautionary principle, and really lead to sustainability. This economic instrument approach emphasizes the existence of economic benefits for those in charge of a business and/or activity if they comply with environmental requirements as stipulated by laws and regulations. It is also necessary to stimulate those in charge of businesses and/or activities to comply with environmental requirements in order to avoid paying penalties or being penalized, to save expenses for using efficiency practices, and to get incentives if their activities have a positive impact on efforts to prevent damage and preserve the environment. Economic instruments through development planning and economic activities are expected to achieve sustainable development. The research method used is normative legal research by conducting legal studies and legal analysis of the application of Environmental Economic Instruments in realizing sustainable development. The main issues in this paper are: First, how are environmental economic instruments regulated in Indonesian laws and regulations? Second, is the regulation of environmental economic instruments capable of realizing sustainable development?

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