Government Imposes Sanctions on Entrepreneurs Negligent in Managing Food Waste

The government plans to regulate sanctions for entrepreneurs who are negligent in managing food waste. The norm will be included in the revision of Law on the Third Amendment to Law No. 18 of 2012 on Food as amended by Regulation of the Government in Lieu of Law No. 2 of 2022 on Job Creation (collectively referred to as “UU 18/2012”).

"The lightest sanctions are written warnings and direct coaching, especially for perpetrators who are violators for the first time. If the perpetrator continues to be wasteful or fails to report food waste data periodically, they can be subject to sanctions ranging from temporary revocation of business licenses to permanent revocation of licenses," said Member of Commission IV of the House of Representatives (Dewan Perwakilan Rakyat – “DPR”), Saadiah Uluputty to Hukumonline.

Administrative sanctions will be effective if supported by a transparent reporting mechanism, ongoing education, and community involvement as supervisors.

Other sanctions include the obligation to pay compensation or provide social contributions as a replacement for food waste. For example, food companies that are proven to have thrown away large amounts of food without any rescue efforts are required to donate funds or food ingredients to social institutions.

“This approach is corrective, but still has a deterrent effect on business actors who do not care about the impact of food waste," said Saadiah.