Compliance with Health, Safety, and Environmental (“K3”) Regulations to Avoid Any Criminal Liabilities

A national Health, Safety, and Environmental ("K3") system is crucial to ensure a safe, secure, and healthy working environment for all employees. The government has developed the K3 system through various instruments in the form of technical standards and compliance mechanisms, all of which are part of the manpower regulatory framework. The compliance of K3 is very important, including to avoid any criminal liabilities. Here is several key points on K3 regulations:

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1.???? Parties Bound by K3 Obligations

Under Article 16 of Law No.1 of 1970 on Occupational Safety and Health (“K3 Law”). Every employer is responsible to implement K3 measures in workplaces where employees are engaged in business activities. The term "workplace" as defined in the Law refers to:

a)???? Any place where work is carried out for a business;

b)???? Where there are workers employed;

c)???? Where there are occupational hazards as detailed in Article 2 of the K3 Law.

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2.???? Licensing of K3 Activities

Each industry has its own specific K3 licenses and permits, therefore it is necessary to review the permits relevant to their particular industry. Here are 3 (three) examples of K3 activity licenses:

a)???? K3 Certification;

b)???? Equipment K3 Test Inspection;

c)???? Certificate of Operation Eligibility Permit.

Industries must ensure that these permits are obtained and regularly updated to demonstrate their commitment to workplace safety.

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3.???? Standard Operating Procedure in K3 Activities

Standard Operating Procedure (“SOPs”) is an instruction mechanism aimed to ensure the efficiency and consistency of results for worker safety. One of the guidelines for the development of K3 SOPs is Regulation of Government of The Republic of Indonesia No.? 50 of 2012 on Implementation of Occupational Safety and Health Management System (“PP SMK3”), where companies shall ensure that their K3 SOPs address the following key areas:

a)???? Policy setting;

b)???? K3 planning;

c)???? K3 implementation;

d)???? Monitoring and evaluation of K3 performance; and

e)???? Review and improvement of K3 performance.

Companies that implement the K3 SOPs will obtain a certificate after conducting audits by an accredited agency appointed by the Ministry of Manpower.

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4.???? Criminal Charges in Violating K3 Regulations

Non-compliance with K3 regulations can result in severe consequences, including criminal liabilities. Criminal provisions on Occupational Safety and Health aspects refer to:

a)???? Article 15 paragraphs (2) and (3) of K3 Law, which provides a criminal penalty in the form of imprisonment for up to 3 (three) months or a fine for up to Rp. 100,000, - (one hundred thousand rupiah); and

b)???? Article 186 the Law No. 6 of 2023 on the Stipulation of Government Regulation in Lieu of Law (Perppu) No. 2 of 2022 on Job Creation into Law, which provides a criminal penalty in the form of imprisonment for a minimum of 1 (one) month and a maximum of 4 (four) years and/or a fine of at least Rp10,000,000.00 (ten million Rupiah) and a maximum of Rp400,000,000.00 (four hundred million Rupiah). This legal provision requires companies that provide workplaces for workers to ensure protection, which includes their welfare, safety, and health.

The imposition of such penalties is applied to the parties responsible for the implementation of K3 in a company which includes the management.

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In conclusion, companies can prevent any criminal liabilities by ensuring correct licensing, establishing SOPs, and comply with the K3 Law. An active strategy for K3 implementation benefits for both employees and employers, fostering a safer and more conducive working environment.

Written by: R. Bayu Perdana , Marwa Hasna Loekman , Natasya Salwa Trisnaini , and Bebi Chantika Wijanarko

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