Requirements to Have AMDAL in Indonesia (Update 2023)

Requirements to Have AMDAL in Indonesia (Update 2023)

  • InCorp Editorial Team
  • 14 June 2023
  • 5 minute reading time

The Minister of Environment and Forestry has introduced a new framework for the Environmental Impact Analysis by introducing Regulation of Government No. 22 of 2021 on the Organization of Environmental Protection and Management. 

A Ministerial Regulation No. 4 of 2021 soon followed concerning the List of Businesses and/or Activities Required to Obtain Environmental Impact Analyses, Environmental Management Efforts, and Environmental Monitoring Efforts or Statements of Ability to Manage and Monitor the Environment.

Those regulations are made to enhance the business climate in Indonesia. The new framework of MR 04/2021 provides a more defined and detailed system covered of the Environmental Impact Analyses (AMDAL) of environmental protection, categorized into specific subject areas listed below: 

  • Environmental approvals;
  • Protection and management of water, air, and ocean quality;
  • Environmental damage control;
  • Waste management;
  • Guarantee funds for the restoration of environmental functions;
  • Environmental information systems;
  • Development and supervision; and
  • Imposition of administrative sanctions. 

Compulsory AMDAL for Business in Indonesia

Business activities that have a significant adverse impact on the environment will have to obtain an AMDAL, including those meeting the following conditions:

  • Natural resources (renewable and non-renewable ) exploitation
  • Landscapes and landform changes
  • Activities that will potentially cause emission pollution and/or environmental degradation
  • Activities that will potentially affect the natural environment, social environment, or artificial environment
  • Activities that will potentially disturb the natural resource preservation and/or culture reserve’s protection

Preparation Phase

During the preparation of AMDAL, the respective person-in-charge (“PIC“) need to obtain three types of documents specifically:

  1. Terms of Reference form; 
  2. Environmental Impact Statement (“Andal“); 
  3. Environmental Management and Monitoring Plan (“RKL-RPL“).

The following steps must be followed to obtain the documents as mentioned earlier:

  1. Community involvement applies explicitly to any communities which will be directly impacted by the businesses/activities;
  2. Examination of the Terms of Reference by authorized officials;
  3. Prepare and submit Andal and Environmental Management and Monitoring Plan (“RKL-RPL“) documents to the authorities.

In addition, several businesses and/or activity plans require AMDAL, Environmental Management Efforts and Environmental Monitoring Efforts (“UKL-UPL“), and Environmental Management Efforts and Environmental Monitoring Efforts (“SPPL“) as mandatory prerequisites. The following sectors are listed under Appendix I to MR 04/2021, such as: 

  • Transportation
  • Satellite technology
  • Public works and housing
  • Industry
  • Tourism
  • Agriculture
  • Nuclear power
  • Health
  • Fisheries and maritime affairs
  • Electricity
  • Environment and forestry
  • Energy and mineral resources
  • Telecommunications 

The regulation also stated specifics activities of which businesses must obtain the compulsory AMDAL in Indonesia:

  • Activities performed in areas that are directly adjacent to preserved areas
  • Activities that affect the functions of protected areas based on scientific evidence

Businesses or Activities Exempted from AMDAL in Indonesia

Some businesses and activities are exempted from obtaining AMDAL in Indonesia:

  • Non-commercial technological research and development
  • Explorations that do not change the landscape or landform; non-commercial scientific and developments that do not disturb the functions of the protected areas; activities that support the preservation of protected areas
  • Activity locations that are included in the KLHS; activity locations that are in relevance to the use of timber forests for the protection of peatland ecosystems; activity locations that are used for emergency disaster responses
  • Businesses/activities that involve special economic zones, ports, free-trade areas, and industrial areas
  • Activities for environmental restoration in unlicensed areas

Businesses still need to apply for relevant permits even though they are exempted from the compulsory AMDAL. These necessary permits are the UKL-UPL or SPPL.

Categories of AMDAL

All business sectors and activities that must acquire AMDAL are put into different AMDAL categories, depending on the level and complexity of their impact on the environment:

  • Category A: business sectors and activities that are highly sensitive and complex with >9 cumulative values
  • Category B: business sectors and activities that are moderately sensitive and complex with 6-9 cumulative values
  • Category C: business sectors and activities that are neither sensitive nor complex with <6 cumulative values

Simplification on Issuance of Feasibility Decrees

One of the most notable adjustments in GR 22/2021 is a more simplified process for issuing Feasibility Decrees. Under previous regulations, it was required to submit separate environmental license applications while the Andal and RKL-RPL document assessment requests were submitted. 

Any recommendation that results from a feasibility assessment will then become a consideration that will be assessed by authorized officials (Minister of Forestry and Environmental Affairs or of local governments) before the issuance of either an Environmental Feasibility Decree or an Environment Infeasibility Decree. 

The respective officials must issue one of these decrees within 10 business days of receiving any environmental feasibility recommendation. If said authorized officials give a Feasibility Decree, this will be announced to the public through the System, mass media, and/or announcement on their business premises. This announcement is required to be made within 5 business days of the issuance.

Assessment of AMDAL

Submitted AMDAL and RKL-RPL documents must then be assessed by the Environmental Feasibility Test Team about administrative and substantive matters. If Andal and RKL-RPL documents have passed the substantive assessment phase, then the Team will conduct a feasibility assessment based on specific established feasibility criteria. Based on the feasibility assessment, the Team will issue either a recommendation of environmentally deeming it feasible or otherwise.

It should be noted that the maximum period for any substantive assessment of Andal and RKL-RPL documents and feasibility assessments is set at 50 business days from when Andal and RKL-RPL documents are declared to have passed the administrative assessment stage.

Consult with InCorp Indonesia

InCorp Indonesia (formerly Cekindo) is one of Indonesia’s top business consulting firms, providing business and legal consultation to companies. 

We work directly with foreign investors and the top management team to get to know your business from top to bottom to provide you with the most practical advice and solutions.

Are you still trying to understand the AMDAL requirements in Indonesia? Simply contact us by filling in the form below. We are confident that you will receive legal and business advice that allows you to make informed, calculated business decisions.

Pandu Biasramadhan

Senior Consulting Manager at InCorp Indonesia

An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.

Get in touch with us.

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Frequent Asked Questions

There are three things business owners need to consider before setting up a business in Indonesia: the type of business entity, capital requirements, and regulations.

Indonesian regulations separate local companies from foreign companies. Generally, foreign-owned companies (PT PMA) have more limitations than their local counterparts (Local PT). However, to pursue more foreign direct investment in the country, the government has taken several bold initiatives to increase the ease of doing business and provide numerous attractive incentives for foreign investors.