Take Note! Types of Businesses that are Required to have Environmental Documents

Corporate Secretary Service Indonesia – Compliance with environmental regulations is one aspect of business that should be addressed. In Indonesia, every company or activity that has the potential to impact the environment is required to have environmental documents. These documents are not only an administrative requirement but also a form of responsibility for business actors towards environmental sustainability. However, it should be noted that not all businesses require all environmental permit documents.

So, what types of businesses are required to have these documents in accordance with applicable regulations? Check out the full discussion!

Types of Businesses that are Required to Have Environmental Documents

Regarding the regulation of business types that are required to have AMDAL, UKL-UPL, and SPPL, this is regulated in the Minister of Environment and Forestry Regulation Number 4 of 2021 concerning the List of Businesses and/or Activities that are required to have AMDAL, UKL-UPL, or SPPL (Permen LHK 4/2021).

The environmental permit regulation classifies business types into 3 (three) categories: those required to have an AMDAL, those required to have a UKL-UPL, and those required to have an SPPL. A complete list of these business types, including classifications based on KBLI and non-KBLI, is listed in Appendix I of Permen LHK 4/2021.

Types of Business Requiring AMDAL

Every business plan that has an essential environmental impact must have an AMDAL (Analisis Mengenai Dampak Lingkungan) or EIA (Environmental Impact Assessment). Related to this, Article 3 paragraph (2) of Permen LHK 4/2021 then stipulates the criteria for businesses that are required to have an AMDAL or EIA, namely the types of businesses that:

1. Changing landforms and landscapes;
2. exploit natural resources, both renewable and non-renewable;
3. its processes and activities can potentially cause pollution and/or environmental damage as well as waste and degradation of natural resources in their utilization;
4. the results of its processes and activities can affect the natural environment, artificial environment, and social and cultural environment;
5. the results of its processes and activities will affect the preservation of natural resource conservation areas and/or the protection of cultural heritage;
6. introduce species of plants, animals, and microorganisms;
7. manufacture and use biological and non-biological materials;
8. carry out activities that have high risks and/or affect national defense; and/or
9. applying technology is estimated to have a high potential to affect the environment.

Furthermore, paragraph (3) states that business plans that require an EIA include those of a certain size or scale and those whose locations are within or directly adjacent to protected areas.

Read Also: International Company Registration Process in Indonesia

Business plans located in protected areas or with the potential for significant impacts on protected areas as intended include those whose site boundaries directly intersect with the boundaries of protected areas or, based on scientific considerations, have a potential impact on the function of these areas (Article 3 paragraph (5) Permen LHK 4/2021).

Types of Businesses Requiring UKL-UPL

UKL-UPL is required for Businesses and/or Activities that do not have Important Impacts on the environment but have the potential for significant environmental impacts. This obligation is determined based on 3 (three) primary factors:

1. Determination of business activities as business activities that are required to have UKL-UPL documents in accordance with the Minister of Environment and Forestry Regulation;
2. Business activities designated as Business Activities are Required to Have UKL-UPL Documents by the Regional Government in accordance with Regional Regulations; and
3. Business activities that have the potential for significant environmental impacts in accordance with the results of an environmental impact assessment.

As with the types of businesses required to have an AMDAL Environmental Permit, the types of businesses that require UKL-UPL are also categorized by KBLI and/or non-KBLI and are listed in Appendix I and Appendix II of Permen LHK 4/2021.

Types of Business Requiring SPPL

SPPL is mandatory for businesses that do not have Important Impacts on the environment and do not include businesses and/or activities required to have UKL-UPL. The nature of this SPPL license is self-declaratory. As with the types of businesses required to have AMDAL and UKL-UPL, the types of businesses that require SPPL are also categorized by KBLI and/or non-KBLI and are listed in Appendix I and Appendix II of Permen LHK 4/2021.

The list of businesses and/or activities required to have AMDAL, UKL-UPL, and SPPL applies to types of businesses that need facilities and infrastructure and service businesses that require facilities and infrastructure.

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