Introduction to Environmental Permits with AMDAL Indonesia Indonesia

Suppose foreigners want to start building and construction, agriculture, or mining businesses in Indonesia. In that case, they must complete the Environmental Impact Analysis (AMDAL) and the Environmental Management and Monitoring Efforts (UKL-UPL).

Certain businesses that impact the environment require environmental permits or licenses when operating in Indonesia. The environmental permit is essential for those businesses or sectors whose activities affect the environment, such as releasing waste or materials into the water or air.

The environmental permit requires the organization to have a plan to deal with the emission of waste and pollutants and requires you to secure trained pollution control officers on-site.

AMDAL Regulation in Indonesia

AMDAL (Environmental Impact Analysis) regulations in Indonesia are governed by Law No. 32 of 2009 on Environmental Protection and Management. This law defines AMDAL as assessing the environmental impacts of proposed businesses or activities to identify, predict, evaluate, and manage potential environmental risks.

Certain projects must undergo an AMDAL, including mining, manufacturing, infrastructure development, energy production, tourism, agriculture, forestry, waste management, and other activities likely to cause significant environmental impacts.

AMDAL regulations are frequently updated by the Ministry of Environment and Forestry, making it essential for businesses and project developers to stay informed about the latest requirements.

Key regulations include:

• Law No. 32 of 2009 on Environmental Protection and Management
• Government Regulation No. 27 of 2012 on Environmental Permits
• Minister of Environment and Forestry Regulation No. 16 of 2012 on Environmental Impact Assessment (EIA)

The Purpose of Having AMDAL

According to the Environment Law in Indonesia, AMDAL is necessary for the following business activities related to natural resources management:

• The exploitation of natural resources (both non-renewable and renewable)
• Change of the form of the environment
• Pollution of the environment and damage/degradation of natural resources
• Impact of the sustainability of natural resources and cultural heritage
• Utilization and production of raw material (both natural and non-natural)
• Introduction of microorganisms and new species of animals and plants
• Implementation of new technology that impacts the environment

To apply for AMDAL, companies must have documents of the term of reference, the Environmental Impact Statement (ANDAL), and the Environmental Management Plan and Environmental Monitoring Plan (RKL-RPL).

Compiling and preparing these documents requires a professional AMDAL consultant. Don’t hesitate to contact InCorp to prepare the AMDAL documents.

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• ESG Advisory for Green Financing in Indonesia
• Steps to Obtaining an AMDAL in Surabaya for a Company

Benefits of AMDAL in Indonesia

In the AMDAL report, companies must include impact analysis and mitigation recommendations, offering several key benefits:

• It provides a foundation for informed decision-making by showing potential environmental impacts and ways to mitigate them.
• AMDAL report can address risks early and help minimize damage to ecosystems, biodiversity, air, water, and soil.
• Ensures adherence to environmental laws, avoiding legal issues, fines, or licensing problems.
• Incorporates feedback from local communities, enhancing transparency and participation.
• It demonstrates a company’s commitment to sustainability and responsible practices.
• Identifies environmental risks and provides strategies to minimize them.
• Increases public understanding of environmental impacts and promotes sustainable behavior.
• Acts as a reference for tracking the implementation of mitigation measures.
• It provides valuable data for future studies and research.

How to Get AMDAL in Indonesia

Obtaining AMDAL (Environmental Impact Assessment) in Indonesia may seem daunting. Still, the proper guidance can be a smooth and rewarding journey for your business and the environment. Here’s how you can get started:

Determine AMDAL Requirement

Check if your business activities require AMDAL based on their scope of operations, such as the exploitation of natural resources or environmental modification. Businesses that significantly impact the environment are obligated to obtain AMDAL.

Prepare Documents

Companies must prepare the following documents:

• Terms of Reference (TOR): Outline the scope of the project and its environmental impacts.
• Environmental Impact Statement (ANDAL): Provide a detailed analysis of potential environmental impacts.
• Environmental Management and Monitoring Plan (RKL-RPL): Outline strategies to manage and monitor environmental risks.

Public Consultation

Conduct public consultations to gather input from local communities and stakeholders, as their involvement is required for AMDAL approval.

Submit to AMDAL Commission

Submit your completed AMDAL documents to the AMDAL Assessment Commission. This commission includes government agencies and environmental experts who will review the submission.

Review and Approval

The commission will review your documents, focusing on environmental impact analysis and mitigation strategies. If the submission meets the requirements, the AMDAL will be approved.

Implementation and Monitoring

Once approved, the company must implement the environmental management and monitoring plans (RKL-RPL) and ensure periodic monitoring to stay compliant.

The Process of AMDAL in Indonesia

An activity plan must be prepared and announced publicly in the AMDAL preparation and application. The public has ten business days to provide comments and feedback on the plan.

AMDAL Evaluation Commission (Komisi Penilai AMDAL) is the body to evaluate the AMDAL application. Then, this commission will provide the government in Indonesia with a recommendation regarding the AMDAL application.

The commission’s evaluation will take approximately 125 business days, including the time needed for public feedback. The entire process will take even longer if entrepreneurs do not consult a professional advisor and do this without the right advice and information.

Environmental Management Efforts (UKL-UPL)

Sectors or business activities not required to acquire AMDAL but still impact the environment must obtain UKL-UPL under Indonesia’s Environmental Law.

A UKL-UPL document includes:

• The action plan.
• The environmental impact of the activity.
• The environmental management and monitoring program.

The UKL-UPL application is then submitted to the relevant authority, and the process should take about 14 business days. However, it varies and often takes longer.

Statement of Ability to Manage and Monitor the Environment (SPPL)

Certain sectors or business activities do not need an AMDAL or a UKL-UPL. All they need is to submit a Statement of Ability to Manage and Monitor the Environment, also known as SPPL, to the relevant authority in Indonesia. The timeframe for the SPPL application is not specified; it could take longer or shorter to acquire.

READ MORE:

• Understanding The Environmental Sustainability in Business
• How Green Building Benefits Business in Indonesia

Approval Process of Environmental Permits

The Ministry of Environment (Peraturan Menteri Negara Lingkungan Hidup) regulates business activities requiring an environmental permit. The approval process for an environmental permit will go through four stages:

1. Draft an AMDAL or UKL-UPL.
2. Evaluation of the AMDAL and UKL-UPL, and then obtain approval of AMDAL or a recommendation of UKL-UPL.
3. Apply for an environmental permit
4. Apply to the Ministry of the Environment in Indonesia or the governor/authorities of the province/city.

The Challenges of Obtaining AMDAL Indonesia

AMDAL is crucial in safeguarding Indonesia’s natural environment by ensuring that development projects are planned and executed with environmental considerations.

However, while it is an essential tool for sustainable growth, obtaining AMDAL has its challenges. Some of the common challenges associated with AMDAL include:

• The AMDAL process can be time-consuming and costly, especially for businesses unfamiliar with environmental regulations.
• The quality of AMDAL reports can vary significantly, with some studies needing more depth or comprehensive analysis.
• In some cases, AMDAL requirements are not adequately enforced, which can lead to non-compliance and environmental harm.

Apply AMDAL in Indonesia with InCorp

Despite these challenges, AMDAL remains a vital mechanism for environmental protection in Indonesia. It ensures that sustainable development projects are conducted to minimize negative environmental impacts, helping preserve natural resources for future generations.

InCorp is the leading business consulting firm in Indonesia, serving clients worldwide. Fill out the form below to contact us for more information on environmental permits in Indonesia, and we will respond with a free quotation.