Environmental Permits with AMDAL for Business – The AMDAL has become a familiar aspect among companies. AMDAL is an abbreviation for Environmental Impact Analysis of which every component of life must be familiar and of course related to this aspect. Almost every aspect of life is related to AMDAL because all environmental aspects and their impacts must be considered and are important.

Discussion regarding AMDAL is included in Government Regulation Number 29 of 1986. AMDAL is an analysis of the impact of an activity on the environment and the surrounding land.

The AMDAL studies are important for the government sector, companies and even society because everything they want to do must have a good AMDAL policy. This means that the AMDAL study is a determinant for the formation of policies that prioritize environmental sustainability around the development site.

For example, a production company is established in a certain environment close to residential areas. Of course, the company is obliged to carry out an AMDAL design so that the company’s activities do not pollute the land, water or sound in the environment near the settlement.

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.

Purpose and Types of AMDAL

Before discussing the benefits of AMDAL, it is necessary to know the purpose and various types of AMDAL itself. The objectives of AMDAL in the following various aspects of life:

• As proof of the responsibility to preserve the environment for future generations
• The AMDAL aims to guarantee a quality living environment
• To avoid dangerous environmental impacts on society
• Establishing a balance of resources and local population
• As a resource that can be renewed and recycled

The purpose of an AMDAL study is clearly to review the impact on the environment or earth. Because, basically humans and the environment must form a balance so that natural disasters do not occur caused by humans themselves. After knowing the purpose of AMDAL we need to aware that to processing an AMDAL there are various types we need to know:

1. Single AMDAL

This type of AMDAL is an activity or study of a single environmental conservation project which is regulated by one supervisory agency. The easiest examples of a single type of AMDAL are hospital study projects or PLTU.

2. Sectoral AMDAL

Sectoral AMDAL is an activity and study of impacts on the environment carried out on a sectoral basis. The reason is because the determination by the sectoral minister. For example, a toll road construction project.

3. Social AMDAL

The third type of AMDAL is social AMDAL, where the AMDAL study is carried out by social businesses. Its application certainly involves the authority of more than one social agency. For example, the AMDAL project to establish a school for scavenger children around the Bantar Gebang TPA.

4. Regional AMDAL

As the name regional AMDAL, this type contains important impacts of activities or businesses within a region. This type of regional AMDAL usually has a broader scope than the previous types. For example, the mangrove planting project in the Kutawaru area, Cilacap.

5. Integrated AMDAL

The last type is integrated AMDAL, which in general is not much different from social AMDAL. What differentiates the two is their focus and study system. If social AMDAL focuses on social aspects, then integrated AMDAL contains a larger and more integrated impact. Examples of integrated AMDAL are integrated residential development, industrial and factory development. Therefore, it is not surprising that this type of AMDAL has a wider scope and is sometimes more complicated.

Benefits of AMDAL in Various Aspects

The benefits of the AMDAL study and project itself must be seen from various sides, such as the government, capital and project owners and the community. AMDAL studies or projects are mandatory for any party to feel the benefits of.

The following are 4 benefits of AMDAL that need to be considered and can be seen from various aspects:

1. AMDAL for the Government

The benefits of AMDAL for the government are actually more related to policy formation. The government has higher authority than any other party. Therefore, the benefit of having an AMDAL is to help prevent more severe environmental damage and pollution.

Apart from that, the AMDAL project has benefits for the government, this project can be used as a form of government responsibility in preserving and protecting the environment. The ultimate goal remains the same, namely to avoid conflicts or disasters that will endanger society.

2. AMDAL for Capital Owners

Capital owners here can be exemplified as banks which hold power over capital for entrepreneurs. The benefit of having an AMDAL for capital owners is that it is easy to provide loan capital for a development or project.

This means that if a party borrows capital from a bank to build a project and the AMDAL of the project is good and of good quality. So, it is an obligation for banks to provide loans for this development.

3. AMDAL for Project Owners

The AMDAL is for project or company owners where AMDAL is key for a company. AMDAL will be beneficial for project owners because it will ensure that project construction continues without having to violate applicable laws and regulations.

An example is when there is construction of a housing complex, of course the developer is required to have a good AMDAL. So that way, the government and capital owners will give permission easily. Apart from that, the community also does not feel disturbed by this development.

4. AMDAL for the Community

The existence of an AMDAL is useful for the community to find out about certain development plans. Apart from that, the community can also become supervisors of projects that are being implemented.

AMDAL for the community is useful so that the community is more attentive and alert to the development of various projects. For example, the construction of a national park where the community is obliged to take part in informing developers so as not to disturb animal habitats and so on.

Environmental Impact Analysis (AMDAL)

The benefit of AMDAL is for project or company owners, will be beneficial for project owners because it will ensure that project construction continues without having to violate applicable laws and regulations. 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 IndoService 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. The 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:

1. Draft an AMDAL or UKL-UPL.
2. Evaluation of the AMDAL and UKL-UPL, and then obtain approval of AMDAL or a recommendation of UKL-UPL.
3. Apply for an environmental permit
4. 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. 

We are Indoservice is the 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. Contact us now at Telp. / Whatsapp +62877-1449-8500 or email at admin@indoservice.co.id for special offers and best prices.