Indonesia Real Estate Transactions - Soil Pollution Or Environmental Contamination

If soil pollution or environmental contamination is already present when the buyer in a real estate transaction in Indonesia becomes the legal owner of the land, it is possible the buyer will be responsible for such pollution or contamination, unless the buyer can prove that it did not cause the pollution or contamination. Upon the transfer of title, the buyer assumes the rights and liability of the land, including any environmental liability.

Article 88 of the Indonesian Environmental Law provides that each per­son whose action, business and/or activity uses hazardous and toxic material (B3), produces and/or manages B3 waste, and/or causes serious threats to the environment shall be absolutely responsible for the damages suffered and no evi­dence of breach elements shall be required.