Coastal areas have strategic value for the development of national economy and the improvement of people’s welfare and are at the same time very vulnerable to damage and destruction. Therefore, it is necessary to manage them wisely by placing economic interests in proportion with the environmental and social interests, both in the short and long term. A good policy should be in accordance with the needs of the community and its benefits to the community. Such as the policy regarding the Jakarta Bay reclamation, whether it benefits the interests of the public or those of the owners of capital. The Environmental Review of the Jakarta reclamation is considered unclear and transparent, including the Permits issued without regard to the Environmental Impact Assessment (EIA). Since 1995, the Jakarta Bay Reclamation, as part of coastal area management, has had advantage and disadvantages at the same time. The advantage is in order to create a new center of economic growth based on services and creative economy and suppress housing development in South Jakarta which should be used as a water catchment area. The disadvantages are that it causes environmental and ecosystem damage and damages the livelihoods of fishermen and communities on the North Coast of Jakarta. This paper describes the lack of conformity among environmental, social, and policy aspects in coastal area management to the Jakarta Bay reclamation. This research will present theories on environmental law compliance especially regarding licensing and spatial planning and discover the ideal rule of law model so that sustainable development can be achieved.