Environmental Licensing in Indonesia
Introduction
The Minister of Environment and Forestry Regulation No. 4 of 2021 regarding the List of Businesses and/or Activities Required to have an Environmental Impact Analysis, Environmental Management Efforts, and Environmental Monitoring Efforts, or a Statement of Commitment to Environmental Management and Monitoring has been issued following the enactment of Law No. 11 of 2020 on Job Creation, which amended the provisions on environmental permits to be adjusted in the new Business Licensing system .
This regulation explains the position of the Environmental Impact Analysis (AMDAL), Environmental Management Efforts and Environmental Monitoring Efforts (UKL-UPL), and the Statement of Commitment to Environmental Management and Monitoring (SPPL) within the framework of Business Licensing and the criteria for businesses and activities determined as mandatory for AMDAL, UKL-UPL, and SPPL.
Minister of Environment and Forestry Regulation No. 4 of 2021 lists businesses and/or activities that are required to have an Environmental Impact Analysis (AMDAL), Environmental Management Efforts and Environmental Monitoring Efforts (UKL-UPL), or a Statement of Commitment to Environmental Management and Monitoring (SPPL). This regulation was issued to implement the provisions of Article 106(a) of Government Regulation No. 22 of 2021 on the Implementation of Environmental Protection and Management.
This regulation covers the following provisions related to Environmental Impact Assessments (EIAs), Environmental Management and Monitoring Efforts (UKL-UPL), and Environmental Management and Monitoring Commitment Statement (SPPL):
Definitions
Amdal (EIA) is an assessment of significant environmental impacts from a planned business or activity, used as a prerequisite for decision-making and included in business licenses or government approvals. (For discussion on EIA history and implementation see: Environmental Impact Assessment -- History, Rationale, and Implementation)
UKL-UPL is a set of environmental management and monitoring processes, used as a prerequisite for decision-making and included in business licenses or government approvals.
SPPL is a commitment statement by the business or activity's responsible party to conduct environmental management and monitoring.
This regulation outlines
Businesses and activities that must have an EIA (AMDAL):
These are typically large-scale projects with potentially significant environmental impacts. An EIA involves a detailed assessment of the potential environmental consequences of a proposed project or activity, and it may include suggested mitigation measures to minimize any adverse effects.
Businesses and activities that must have UKL-UPL:
UKL-UPL stands for "Upaya Pengelolaan Lingkungan Hidup dan Upaya Pemantauan Lingkungan Hidup." These are environmental management and monitoring efforts required for businesses and activities that have a moderate environmental impact. It is typically required for smaller projects or activities that do not warrant a full EIA but still need to address their environmental impacts.
Businesses and activities that must have SPPL:
SPPL stands for "Surat Pernyataan Kesanggupan Pengelolaan dan Pemantauan Lingkungan Hidup," which is a Statement of Commitment to Environmental Management and Monitoring. This document is required for businesses and activities with relatively low environmental impact. It is a written statement declaring that the business or project proponent is committed to managing and monitoring the environmental impacts of their activities.
Addition or reduction of businesses and activities that must have EIA, UKL-UPL, or SPPL:
The Minister of Environment and Forestry Regulation No. 4 of 2021 is responsible for listing the businesses and/or activities that must have an EIA, UKL-UPL, or SPPL. As mentioned earlier, the specific businesses and activities are not included in the text provided. However, the regulation has the authority to add or remove businesses and activities from these lists based on their environmental impact and the requirements for environmental protection and management.
EIA Requirement
EIAs are required for businesses and activities with significant environmental impacts, which include changes to landforms and landscapes, exploitation of natural resources, pollution and resource depletion, and activities affecting natural, built, social, and cultural environments.
UKL-UPL is required for businesses and activities without significant environmental impacts.
SPPL is required for businesses and activities without significant environmental impacts and not included in the UKL-UPL list.
The regulation provides a list of businesses and activities that require EIA, UKL-UPL, or SPPL, grouped by the Indonesian Standard Industrial Classification (KBLI) and non-KBLI.
Changes to the list of businesses and activities requiring EIA, UKL-UPL, or SPPL can be proposed by ministers, heads of non-ministerial government agencies, governors, mayors/regents, or other stakeholders.