This is the Purpose of Issuing an Environmental Permit

Corporate Secretary Service Indonesia – Many people still do not understand the importance of an Environmental Permit when they want to run a business. For this reason, in this article we from PortCorp will discuss the purpose of making an Environmental Permit. This is very important, so that you understand more about the importance of an Environmental Permit before carrying out a business activity so that there are no problems in the future.

Purpose of Issuing Environmental Permit

Basically, development activities carried out in various forms of business and/or activities will have an impact on the environment. With the application of sustainable and environmentally sound principles in the development implementation process, the impact on the environment caused by various development activities is analyzed from the beginning of the planning.

With the analysis of planning, steps to control negative impacts and develop positive impacts can be prepared as early as possible. The purpose of issuing an Environmental Permit is to, among others:

• Provide protection for a sustainable and sustainable environment.
• Improve efforts to control businesses and/or activities that have a negative impact on the environment.
• Provide clarity of procedures, mechanisms and coordination between agencies in the implementation of licensing for businesses and/or activities.
• Provide legal certainty in business and/or activities.

Then, what types of businesses are required to have an Environmental Permit?

Types of Businesses That Must Have an Environmental Permit

Some businesses or activities that must obtain an Environmental Permit in accordance with Law Number 32 of 2009 are businesses or activities that are required to have an Amdal or UKL-UPL. For this reason, business actors must first know what businesses and/or activities are required to have an EIA/UKL-UPL.

Read Also: What are the Benefits of Investing in Indonesia for Foreign Investors?

Referring to Law Number 32 of 2009, concerning Environmental Protection and Management (PPLH) Article 22, it is stated that every business and/or activity that has an important impact on the environment is required to have an EIA (Environmental Impact Assessment). The important impact on the environment is determined based on the following criteria:

• The size of the population affected by the business plan and/or activities.
• The area of population distribution.
• The intensity and duration of the impact.
• The number of other environmental components that will be affected.
• Cumulative nature of the impact.
• Reversal or irreversibility of the impact.
• Other criteria in accordance with the development of science and technology.

Linkage of Environmental Permit with Business License

Based on Law Number 32 of 2009 concerning Protection and Management of Life (PPLH) in Article 40, the relationship between the Environmental Permit and the Business License and/or activity is that it functions as a requirement to obtain the Business License and/or activity. When the Environmental Permit is revoked, the Business License and/or activity may also be revoked. And when the business and/or activity changes the person in charge, the Environmental Permit is also required to be updated. Thus, it can be concluded that the Environmental Permit is the main permit that forms the basis of all other licenses for businesses and/or business activities.

Sanctions If a Business and/or Activity Does Not Have an Environmental Permit

In accordance with Article 109 of Law Number 32 of 2009 concerning PPLH Article 36 paragraph 1, sanctions for businesses and/or activities that do not have an Environmental Permit are imprisonment for a minimum of one (1) year and a maximum of three (3) years. And coupled with a fine of at least Rp 1 billion and a maximum of Rp 3 billion.

Hopefully this information is useful for those of you who plan to apply for a license for the smooth running of the business and/or activities that you will run. Well, if you currently find it difficult to take care of all the legal needs of the Environmental Permit, then we from PortCorp are ready to help you!

Don’t worry about developing your business by setting up a company in Indonesia, because Portcorp is here as a solution for your business, also when you need Environmental Permit. Portcorp is your comprehensive corporate secretary service in Indonesia. With our presence, you can get a dedicated company secretary to support you to what you need. Our company secretaries will track deadlines and file paperwork so your business keeps running smoothly. Contact us now on +6221-5020-8090 for your business succeed in the future!