An environmental permit is required to obtain a business licence for any business and/or activity for which an AMDAL or Environmental Management and Monitoring Program (UKL-UPL) is required.
The application for an Environmental Licence is submitted to the Ministry, the relevant governor or the relevant regent / mayor depending on the location of the business operations of the enterprise.
| Indonesia’s Environment Law provides that an AMDAL is required for those businesses and/or activities which, amongst other things:
On 10 April 2012, the Ministry issued Ministerial Regulation No. 5 of 2012 (“Regulation 5/2012”) which lists out the types of businesses which require an AMDAL. Regulation 5/2012 covers a wide range of business sectors which include agriculture, manufacturing and mining.
The document must be prepared by a certified AMDAL consultant.
As part of the AMDAL documents, an activities plan must be prepared and publicly announced. The public must be given 10 business days to provide feedback on the activities plan.
The AMDAL will be evaluated by the AMDAL Evaluation Commission (Komisi Penilai AMDAL) established at the relevant level of government, which will issue a recommendation to that government.
|Generally, there are two situations in which an enterprise would need to prepare a UKL-UPL:
A UKL-UPL has a prescribed form, which includes:
According to Ministerial Regulation No. 13 of 2010, the types of businesses which require a UKL-UPL will be further set out by governors, regents or mayors.
|Jurisdiction of Relevant Authorities
Commissions are set up at the central, provincial and regency / municipal levels, and the location of the business operations of the enterprise will determine which commission will evaluate the AMDAL prepared by the enterprise.
Final approval will correspondingly be given by the Minister, the relevant governor or the relevant regent / mayor.
| Jurisdiction of Relevant Authorities
The location of the business operations of the enterprise will determine which authority (whether the Minister, the governor or the regent / mayor) will evaluate the UKL-UPL prepared by the enterprise.
Other than AMDAL and UKL-UPL, Some businesses or activities (or both) do not require either an AMDAL or a UKL-UPL, but these must submit a Statement of Ability to Manage and Monitor the Environment (SPPL) to the relevant level of government. Statement of Environmental Management and Monitoring Undertaking (Surat Pernyataan Kesanggupan Pengelolaan dan Pemantauan Lingkungan Hidup/SPPL), which is a statement regarding the company’s undertaking to monitor and manage the environmental impact of its business and/or activities which are exempted from the AMDAL or UKL-UPL requirement (Majority for services business fields).