3 Types of Environmental Approval that Businessman Must Know!

Corporate Secretary Service Indonesia – Environmental permit ensures that all development activities carried out by the government and the private sector are in accordance with applicable environmental standards and regulations and that environmental sustainability is considered. This document includes various information related to potential environmental impacts, environmental management plans, and mitigation measures that will be taken to reduce negative environmental impacts.

This is regulated in Article 3 paragraph (3) of Government Regulation Number 22 of 2021 concerning the Implementation of Environmental Protection and Management (PP 22/2021).

There are 3 (three) types of Environmental Approval in Indonesia, namely:

• Environmental Impact Assessment or Analisis Mengenai Dampak Lingkungan Hidup (AMDAL)
• Environmental Management Efforts and Environmental Monitoring Efforts or Upaya Pengelolaan Lingkungan dan Upaya Pemantauan Lingkungan (UKL-UPL)
• Letter of Undertaking for Environmental Management and Monitoring or Surat Pernyataan Kesanggupan Pengelolaan dan Pemantauan Lingkungan Hidup (SPPL)

So, what is the explanation? Check out the full story!

AMDAL Environmental Approval

AMDAL is an assessment of the essential impacts on the environment of a planned business and/or activity to be used as a prerequisite for decision-making on the implementation of the company and/or activity and included in Business Licensing or approval of the Central Government or Regional Government (Article 1 point 5 of PP 22/2021).

Simply put, AMDAL is a process for evaluating the potential environmental impacts of a particular activity or project before it is implemented. This process helps ensure that any project with the potential for significant environmental impacts is thoroughly considered to reduce or avoid its negative effects.

Article 5 paragraph (1) of PP 22/2021, AMDAL must be owned by businesses with “Important Impacts on the Environment. A significant impact is a fundamental environmental change caused by a business or activity.

Furthermore, Article 5, paragraph (2) of PP 22/2021 explains that AMDAL includes:

1. Types of Business and/or Activity plans whose size/scale are required to conduct AMDAL; and/or
2. Types of Business and/or Activity plans where the Business and/or Activity location is carried out in and/or directly adjacent to a protected area.

To learn more about what businesses are classified as required to have an AMDAL first to obtain Environmental Permit / Approval, business actors can check the Minister of Environment Regulation Number 4 of 2021 concerning the List of Businesses and/or Activities that are Required to Have an AMDAL, UKL-UPL or SPPL (Permen LHK 4/2021).

Read Also: Do You Need to Open Business Account in Indonesia? How?

Environmental Management Efforts and Environmental Monitoring Efforts (UKL-UPL)

UKL-UPL is used for projects that are not required to prepare an AMDAL but still have potential environmental impacts. With UKL-UPL, every activity or project must manage and monitor its environmental impacts. It is not a Micro, Small and Medium Enterprise (MSME) (Article 6 paragraph (1) of PP 22/2021). UKL-UPL is a document that describes a series of stage processes for managing and monitoring the environment as outlined in a standard (Article 1 point 6 of PP 22/2021).

Article 52 paragraphs (1) and (2) of GR 22/2021 explains that UKL-UPL is filled in by the person in charge of the business and/or activity at the business planning stage of the activity in the form of standards with the obligation to adjust to the spatial plan. Just like before, business actors can refer to Permen LHK 4/2021 to find out what types of businesses are required to have UKL-UPL.

SPPL Environmental Approval

SPPL is an environmental permit for businesses with the most negligible ecological impact. Unlike the AMDAL and UKL-UPL, the nature of SPPL licensing is self-declaratory. SPPL is a written commitment from the business or activity proponent to carry out environmental management and monitoring in accordance with applicable regulations.

This instrument is important to ensure that every activity continues to pay attention to environmental aspects, albeit on a simpler scale. SPPL aims to ensure that activities or businesses that do not require an AMDAL or UKL-UPL still comply with environmental management provisions.

The business plans/activities that are required to have SPPL include (Article 7 of PP 22/2021):

• Types of business plans and/or activities that do not have an important impact and are not required to have a UKL-UPL
• Businesses and/or activities of Micro and Small Enterprises (MSEs) that do not have Important Impacts on the Environment
• Types of business plans and/or activities exempted from mandatory UKL-UPL
• Types of businesses that are required to have SPPL refer to Permen LHK 4/2021.

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