If foreigners want to start a business in sectors such as buildings and construction, agriculture, and mining, they need to go through the Environmental Impact Analysis (AMDAL) in Indonesia and the Environmental Management Efforts and Environment Monitoring Efforts (UKL-UPL).
Environmental permits or licenses are required for certain businesses that impact the environment to operate in Indonesia. The environmental permit is particularly important for those businesses or sectors their activities affect the environment, such as releasing any waste or materials into the water or air.
Not only that the environmental permit requires the organization to have a plan to deal with the emission of waste and pollutants, but it also needs you to secure trained, and pollution control officers on-site.
Environmental Impact Analysis (AMDAL)
According to the Environment Law in Indonesia, AMDAL is necessary for the following business activities:
- The exploitation of natural resources (both non-renewable and renewable)
- Change of the form of the environment
- Pollution of 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
In order to apply for AMDAL, companies need to have documents that consist of the term of reference, the Environmental Impact Statement (ANDAL), and the Environmental Management Plan and Environmental Monitoring Plan (RKL-RPL).
A professional AMDAL consultant is required to compile and prepare these documents. Please contact Cekindo for the preparation of AMDAL documents.
Activity Plan for AMDAL Indonesia
An activity plan must be prepared and announced publicly, as part of the AMDAL preparation and application. 10 business days are given to the public so that they can provide comments and feedback for 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 a recommendation in regards to the AMDAL application.
The evaluation by the commission will take approximately 125 business days including the time needed for public feedback. Practically, 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 that are not required to acquire AMDAL but still impact the environment must obtain UKL-UPL under the Environment Law in Indonesia.
A UKL-UPL document includes the action plan, the environmental impact of the activity, and the environmental management and monitoring program.
The UKL-UPL application is then submitted to relevant authority, and the process should take about 14 business days. However, the length varies and often takes longer.
Statement of Ability to Manage and Monitor the Environment (SPPL)
Certain sectors or business activities do not even 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 of SPPL application is not specified, it could take longer or shorter to acquire.
Approval Process of Environmental Permits
The Ministry of Environment (Peraturan Menteri Negara Lingkungan Hidup) regulates the types of business activities that require an environmental permit. The approval process for an environmental permit will go through four stages:
- Draft an AMDAL or UKL-UPL.
- Evaluation of the AMDAL and UKL-UPL, and then obtain approval of AMDAL or a recommendation of UKL-UPL.
- Apply for an environmental permit
- Submit an application to the Ministry of the Environment in Indonesia, or the governor/authorities of the province/city.
Did you know? Environmental permit is required to secure industrial business license in Indonesia. Read details here.
Application of Environmental Permits with AMDAL Indonesia
Cekindo is the leading business consulting firm in Indonesia that serves clients from all over the world. Contact us for more information on environmental permits in Indonesia through the form below, and we will get back to you with a free quotation.
