Who Decides Your Environmental Permit? Indonesia's Authority Maze Under PERMEN LH 22/2025
Who Decides Your Environmental Permit? Indonesia's Authority Maze Under PERMEN LH 22/2025
PERMEN LH 22/2025 Analysis Series - Article 1 of 4
- Who Decides Your Environmental Permit? Indonesia's Authority Maze
- The Sector Trap: Why Your Industry Classification Determines Your Approval Path
- October 27th Changed Everything: Your OSS Integration Survival Guide
1.0 The Fundamental Shift: From Sector to Location
On October 27, 2025, Indonesia's environmental approval system fundamentally changed. PERMEN LH 22/2025 Article 3(1) states: "Kewenangan penerbitan Persetujuan Lingkungan dilaksanakan berdasarkan lokasi Usaha dan/atau Kegiatan" (Authority for issuing Environmental Approval is implemented based on the location of the Business and/or Activity). Prior to this regulation, environmental approval authority was determined primarily by business sector classifications. A manufacturing facility would go through industrial regulators; an agricultural project through agricultural departments. The new regulation replaces this sector-based approach with location-based criteria: where you build now determines which government level—central (Minister/Head), provincial (Governor), or local (Regent/Mayor)—approves your environmental permit. This shift aligns with Indonesia's broader regulatory reform under PP 28/2025 on Risk-Based Business Licensing, which established location as the primary determinant for administrative authority across multiple licensing domains. The regulation governs five distinct environmental instruments, each serving different risk categories of business activities (see Matrix 1.1 below). Understanding these instruments is essential because higher-risk instruments (AMDAL, UKL-UPL) trigger more complex authority determination processes and are more likely to fall under central or provincial jurisdiction, while lower-risk instruments (SPPL) generally remain at local level unless location criteria force escalation.
Matrix 1.1: Five Environmental Instruments Under PERMEN LH 22/2025
| No. | Instrument | Indonesian Term | Risk Level | Application | Article Reference |
|---|---|---|---|---|---|
| 1.1 | AMDAL | Analisis Mengenai Dampak Lingkungan Hidup | High | Comprehensive environmental impact assessment for projects with significant environmental consequences | Article 1(3) |
| 1.2 | Andal | Analisis Dampak Lingkungan Hidup | High | Detailed environmental impact analysis (technical core of AMDAL process) | Article 1(2) |
| 1.3 | UKL-UPL | Upaya Pengelolaan Lingkungan Hidup dan Upaya Pemantauan Lingkungan Hidup | Medium | Standardized environmental management and monitoring for medium-risk activities | Article 1(4) |
| 1.4 | DELH | Dokumen Evaluasi Lingkungan Hidup | Retrospective (High) | Environmental evaluation for existing operations with significant impacts | Article 1(5) |
| 1.5 | DPLH | Dokumen Pengelolaan Lingkungan Hidup | Retrospective (Medium) | Environmental management document for existing operations with non-significant impacts | Article 1(6) |
| 1.6 | SPPL | Surat Pernyataan Kesanggupan Pengelolaan dan Pemantauan Lingkungan Hidup | Low | Self-declaration for low-risk activities outside AMDAL/UKL-UPL requirements | Article 1(7) |
2.0 The Five Location Criteria: Authority Determination Framework
PERMEN LH 22/2025 Article 3(2) establishes five distinct location criteria that determine which government level has approval authority over environmental permits. Criterion A assigns cross-provincial activities (rencana Usaha dan/atau Kegiatan yang berada di lintas provinsi) to central government authority, meaning any business activity whose physical footprint spans multiple provincial boundaries requires approval from the Minister of Environment/Head of Environmental Control Agency in Jakarta. Criterion B assigns cross-regency/city activities within one province (lintas kabupaten/kota dalam 1 provinsi) to provincial authority under the Governor, addressing situations where projects span multiple local jurisdictions but remain within provincial boundaries. Criterion C establishes single regency/city location (1 kabupaten/kota) as the default for local authority under Regent or Mayor (Bupati/Walikota). Criterion D creates independent authority for two special strategic zones: activities within the legally-defined delineation boundaries of Ibu Kota Nusantara (IKN) fall under IKN Otorita authority, while activities within Batam Free Trade Zone (KPBPB Batam) fall under Batam KPBPB authority. Criterion E introduces a complexity-based override allowing higher authority levels for "specific activities in specific locations" based on four considerations per Article 3(3): complexity of the business/activity, pollution level potential, location sensitivity, and strategic nature per legislation. This fifth criterion prevents locally-contained but environmentally-significant projects from escaping appropriate oversight, enabling central or provincial authority even when geographic footprint suggests local jurisdiction (see Matrix 2.1 below).
Matrix 2.1: Five Location Criteria for Authority Determination
| No. | Criterion | Location Type (Indonesian) | Location Type (English) | Authority Level | Governing Article |
|---|---|---|---|---|---|
| 2.1 | Criterion A | Lintas provinsi | Cross-provincial | Central (Minister/Head) | Article 4 |
| 2.2 | Criterion B | Lintas kabupaten/kota dalam 1 provinsi | Cross-regency/city within one province | Provincial (Governor) | Article 6 |
| 2.3 | Criterion C | 1 (satu) kabupaten/kota | Single regency/city | Local (Regent/Mayor) | Article 8 |
| 2.4 | Criterion D | Wilayah IKN atau KPBPB Batam | Within IKN or Batam delineation zones | Special Authority (IKN Otorita or Batam KPBPB) | Article 9 |
| 2.5 | Criterion E | Usaha dan/atau Kegiatan tertentu di lokasi tertentu | Specific activities in specific locations | Variable (based on complexity, pollution, sensitivity, strategic nature) | Article 3(3), 4(1)(g) |
3.0 Central Government Authority: Seven Categories
Article 4(1) of PERMEN LH 22/2025 assigns seven distinct categories of activities to central government authority under the Minister of Environment and Head of Environmental Control Agency. Category 1 covers cross-provincial land-based activities where "tapak proyek berada di lintas provinsi" (project footprint is across provinces), focusing on physical infrastructure presence across provincial boundaries rather than mere operational effects. Category 2 addresses cross-provincial inland water activities in "sungai dan/atau danau yang melintas atau melingkupi lebih dari 1 (satu) provinsi" (rivers and/or lakes that cross or encompass more than one province), recognizing the inherent multi-jurisdictional nature of river systems and lakes traversing multiple provinces. Category 3 establishes central authority for maritime activities beyond 12 nautical miles from coastline, aligning with Indonesia's territorial sea boundaries under international maritime law. Category 4 captures cross-border international activities "di lintas batas Negara Kesatuan Republik Indonesia dengan negara lain" (across the borders of the Unitary State of the Republic of Indonesia with other countries), ensuring central government control over transboundary environmental matters. Category 5 assigns central authority when activities are initiated by provincial environmental agencies ("diprakarsai oleh organisasi perangkat daerah yang menyelenggarakan urusan pemerintahan di bidang lingkungan hidup provinsi"), preventing conflicts of interest where provincial environmental agencies would approve their own projects. Category 6 elevates projects "ditetapkan sebagai proyek strategis nasional" (designated as national strategic projects) to central authority regardless of local geography. Category 7 creates two subcategories: (7a) high-polluting activities per Article 4(2), defined as those polluting water with high concentration/toxicity/persistence or generating high air emissions, and (7b) high-risk non-renewable resource extraction per Article 4(3), defined as activities that may cause wide-scale landscape transformation, habitat destruction, or failure risks based on scale, location, or technology (see Matrix 3.1 below). Articles 4(4) and 4(5) establish "pull-up" mechanisms: when integrated environmental studies or multiple activities in one location involve central authority combined with provincial and/or local authority, the entire project escalates to central authority.
Matrix 3.1: Seven Categories of Central Government Authority
| No. | Category | Location/Activity Criteria | Indonesian Text (Article 4(1)) | Article Reference |
|---|---|---|---|---|
| 3.1 | Cross-Provincial Land | Project footprint crosses provincial boundaries on land | berlokasi di daratan, dengan ketentuan tapak proyek berada di lintas provinsi | Article 4(1)(a) |
| 3.2 | Cross-Provincial Inland Water | Rivers/lakes that cross or encompass more than one province | berlokasi di perairan darat dengan ketentuan berupa sungai dan/atau danau yang melintas atau melingkupi lebih dari 1 (satu) provinsi | Article 4(1)(b) |
| 3.3 | Maritime Beyond 12 NM | Marine waters more than 12 nautical miles from coastline | berlokasi di perairan laut dengan ketentuan tapak proyek yang berada di perairan laut dengan jarak lebih dari 12 (dua belas) mil laut diukur dari garis pantai ke arah laut lepas | Article 4(1)(c) |
| 3.4 | International Cross-Border | Crosses Indonesia's borders with other countries | berlokasi di lintas batas Negara Kesatuan Republik Indonesia dengan negara lain | Article 4(1)(d) |
| 3.5 | Provincial Agency-Initiated | Initiated by provincial environmental agencies | diprakarsai oleh organisasi perangkat daerah yang menyelenggarakan urusan pemerintahan di bidang lingkungan hidup provinsi | Article 4(1)(e) |
| 3.6 | National Strategic Projects | Designated as national strategic projects by law | ditetapkan sebagai proyek strategis nasional berdasarkan ketentuan peraturan perundang-undangan | Article 4(1)(f) |
| 3.7a | High-Polluting Activities | Water pollution (high concentration/toxicity/persistence) OR high air emissions | mencemari air dengan konsentrasi tinggi atau toksisitas/persistensi dengan potensi bioakumulasi ATAU menghasilkan emisi tinggi ke udara | Article 4(1)(g)(1), 4(2) |
| 3.7b | High-Risk Resource Extraction | Non-renewable resource extraction causing landscape transformation, habitat destruction, or failure risks | pengusahaan sumber daya alam tidak terbarukan berdasarkan skala, lokasi, atau teknologi berisiko tinggi terhadap transformasi bentang alam skala luas, kerusakan habitat, atau risiko kegagalan | Article 4(1)(g)(2), 4(3) |
Matrix 3.2: Multi-Jurisdictional Pull-Up Rules (Central Authority)
| No. | Situation | Authority Combination | Escalated Authority | Article Reference |
|---|---|---|---|---|
| 3.2a | Integrated/area-based AMDAL or UKL-UPL studies | Central + Provincial + Local | Central | Article 4(4)(a) |
| 3.2b | Integrated/area-based AMDAL or UKL-UPL studies | Central + Provincial | Central | Article 4(4)(b) |
| 3.2c | Integrated/area-based AMDAL or UKL-UPL studies | Central + Local | Central | Article 4(4)(c) |
| 3.2d | Multiple activities in single location | Central + Provincial + Local | Central | Article 4(5)(a) |
| 3.2e | Multiple activities in single location | Central + Provincial | Central | Article 4(5)(b) |
| 3.2f | Multiple activities in single location | Central + Local | Central | Article 4(5)(c) |
4.0 Provincial Authority: Five Categories Plus Maritime Jurisdiction
Article 6(1) of PERMEN LH 22/2025 establishes five categories of activities under provincial (Governor) authority, largely mirroring central government criteria but applied to intra-provincial jurisdiction. Category 1 covers cross-regency/city land-based activities where "tapak proyek berada di lintas kabupaten/kota dalam 1 (satu) provinsi" (project footprint is across regencies/cities within one province), applying provincial coordination for projects spanning multiple local jurisdictions within provincial boundaries. Category 2 addresses cross-regency/city inland water activities in "sungai dan/atau danau yang melintas atau melingkupi lebih dari 1 (satu) kabupaten/kota dalam 1 (satu) provinsi" (rivers/lakes crossing or encompassing more than one regency/city within one province). Category 3 establishes provincial authority for maritime activities within 12 nautical miles from coastline ("perairan laut dengan jarak kurang dari 12 mil laut diukur dari garis pantai ke arah laut lepas"), creating a clear maritime jurisdiction division where central government controls beyond 12 nautical miles and provincial government controls within that threshold. Category 4 assigns provincial authority when activities are initiated by regency/city environmental agencies ("diprakarsai oleh organisasi perangkat daerah yang membidangi lingkungan hidup kabupaten/kota"), ensuring oversight of lower-level environmental agencies by provincial authorities. Category 5 introduces a "provincial significance" criterion for activities "berlokasi di satu kabupaten/kota dalam satu provinsi yang memiliki peran penting secara ekonomi, sosial dan ruang bagi provinsi" (located in one regency/city within one province that has an important economic, social, and spatial role for the province), with Article 6(2) further defining provincial significance as activities providing direct or indirect influence on provincial economic growth, community welfare, or provincial spatial utilization structure (see Matrix 4.1 below). Similar to central authority, Articles 6(3) and 6(4) establish provincial-level pull-up mechanisms: when integrated studies or multiple activities involve both provincial and local authority, the entire project escalates to provincial level.
Matrix 4.1: Five Categories of Provincial Government Authority
| No. | Category | Location/Activity Criteria | Indonesian Text (Article 6(1)) | Article Reference |
|---|---|---|---|---|
| 4.1 | Cross-Regency/City Land | Project footprint crosses regencies/cities within one province | berlokasi di daratan, dengan ketentuan tapak proyek berada di lintas kabupaten/kota dalam 1 (satu) provinsi | Article 6(1)(a) |
| 4.2 | Cross-Regency/City Inland Water | Rivers/lakes crossing or encompassing more than one regency/city within one province | berlokasi di perairan darat dengan ketentuan berupa sungai dan/atau danau yang melintas atau melingkupi lebih dari 1 (satu) kabupaten/kota dalam 1 (satu) provinsi | Article 6(1)(b) |
| 4.3 | Maritime Within 12 NM | Marine waters less than 12 nautical miles from coastline | berlokasi di perairan laut dengan ketentuan tapak proyek yang berada di perairan laut dengan jarak kurang dari 12 (dua belas) mil laut diukur dari garis pantai ke arah laut lepas | Article 6(1)(c) |
| 4.4 | Regency/City Agency-Initiated | Initiated by regency/city environmental agencies | diprakarsai oleh organisasi perangkat daerah yang membidangi lingkungan hidup kabupaten/kota | Article 6(1)(d) |
| 4.5 | Provincially-Significant Activities | Located in one regency/city but has important economic, social, or spatial role for province | berlokasi di satu kabupaten/kota dalam satu provinsi yang memiliki peran penting secara ekonomi, sosial dan ruang bagi provinsi | Article 6(1)(e), 6(2) |
Matrix 4.2: Multi-Jurisdictional Pull-Up Rules (Provincial Authority)
| No. | Situation | Authority Combination | Escalated Authority | Article Reference |
|---|---|---|---|---|
| 4.2a | Integrated/area-based AMDAL or UKL-UPL studies | Provincial + Local | Provincial | Article 6(3) |
| 4.2b | Multiple activities in single location | Provincial + Local | Provincial | Article 6(4) |
Matrix 4.3: Maritime Authority Division
| No. | Distance from Coastline | Authority Level | Article Reference | Typical Activities |
|---|---|---|---|---|
| 4.3a | Less than 12 nautical miles | Provincial (Governor) | Article 6(1)(c) | Coastal aquaculture, near-shore tourism facilities, port development |
| 4.3b | More than 12 nautical miles | Central (Minister/Head) | Article 4(1)(c) | Offshore oil/gas exploration, deep-sea fishing operations, maritime infrastructure |
5.0 Local Authority and Special Zone Authorities
Article 8(1) establishes Regent/Mayor (Bupati/Walikota) authority through two principles: primary criterion for activities "berlokasi di 1 (satu) kabupaten/kota" (located in one regency/city) per Article 8(1)(a), and residual criterion for "rencana Usaha dan/atau Kegiatan lainnya di luar kewenangan Menteri/Kepala, gubernur, Kepala Otorita Ibu Kota Nusantara, atau Kepala Badan Pengusahaan KPBPB Batam" (other planned Business and/or Activity outside the authority of Minister/Head, Governor, Nusantara Capital Authority Head, or Batam KPBPB Management Agency Head) per Article 8(1)(b). This residual clause ensures zero jurisdictional gaps: any environmental approval not explicitly assigned to central, provincial, or special zone authorities defaults to local government by elimination. Article 9(1) carves out two geographic zones with independent environmental approval authority: Ibu Kota Nusantara (IKN) and Batam Free Trade Zone (KPBPB Batam), where authority applies to activities whose "tapak proyeknya berada dalam delineasi kawasan strategis nasional" (project footprint is within the delineation of the national strategic zone). The critical term "delineasi" (delineation) means legally-defined zone boundaries established by separate legislation—projects must be within official boundaries, not merely geographically near these zones. Article 9(3) imposes a procedural requirement for IKN and Batam authorities forming Environmental Feasibility Assessment Teams: they must obtain recommendations from the environmental feasibility assessment agency based at the Ministry/Agency before forming teams, ensuring central government oversight of specialized technical capacity development in these zones (see Matrix 5.1 and 5.2 below).
Matrix 5.1: Local Authority (Regent/Mayor)
| No. | Criterion | Activity Type | Indonesian Text (Article 8(1)) | Article Reference |
|---|---|---|---|---|
| 5.1a | Primary | Located in one regency/city | rencana Usaha dan/atau Kegiatan berlokasi di 1 (satu) kabupaten/kota | Article 8(1)(a) |
| 5.1b | Residual | All other activities outside central, provincial, IKN, or Batam authority | rencana Usaha dan/atau Kegiatan lainnya di luar kewenangan Menteri/Kepala, gubernur, Kepala Otorita Ibu Kota Nusantara, atau Kepala Badan Pengusahaan KPBPB Batam | Article 8(1)(b) |
Matrix 5.2: Special Zone Authorities (IKN and Batam)
| No. | Zone | Authority Figure | Jurisdiction Criteria | Team Formation Requirement | Article Reference |
|---|---|---|---|---|---|
| 5.2a | IKN (Ibu Kota Nusantara) | Kepala Otorita Ibu Kota Nusantara | Project footprint within IKN delineation boundaries | Must obtain Ministry/Agency recommendation before forming Environmental Feasibility Assessment Teams | Article 9(1), 9(3) |
| 5.2b | Batam (KPBPB) | Kepala Badan Pengusahaan KPBPB Batam | Project footprint within Batam KPBPB delineation boundaries | Must obtain Ministry/Agency recommendation before forming Environmental Feasibility Assessment Teams | Article 9(1), 9(3) |
Matrix 5.3: Authority Determination Decision Tree
| Step | Question | If YES → Authority | If NO → Next Step |
|---|---|---|---|
| 1 | Is project within IKN or Batam delineation? | IKN/Batam Authority (Art 9) | Step 2 |
| 2 | Does project cross provincial boundaries? | Central Authority (Art 4) | Step 3 |
| 3 | Does project cross regency/city boundaries within one province? | Provincial Authority (Art 6) | Step 4 |
| 4 | Is project a national strategic project? | Central Authority (Art 4(1)(f)) | Step 5 |
| 5 | Does project have high pollution potential or high-risk resource extraction? | Central Authority (Art 4(1)(g)) | Step 6 |
| 6 | Is project in marine waters beyond 12 nautical miles? | Central Authority (Art 4(1)(c)) | Step 7 |
| 7 | Is project in marine waters within 12 nautical miles? | Provincial Authority (Art 6(1)(c)) | Step 8 |
| 8 | Is project initiated by provincial environmental agency? | Central Authority (Art 4(1)(e)) | Step 9 |
| 9 | Is project initiated by regency/city environmental agency? | Provincial Authority (Art 6(1)(d)) | Step 10 |
| 10 | Does project have provincial economic/social/spatial significance? | Provincial Authority (Art 6(1)(e)) | Local Authority (Art 8) |
Continue Reading: PERMEN LH 22/2025 Analysis Series
This is Article 1 of 4 in this comprehensive legal analysis series:
- Who Decides Your Environmental Permit? Indonesia's Authority Maze (this article)
- The Sector Trap: Why Your Industry Classification Determines Your Approval Path (forthcoming)
- October 27th Changed Everything: Your OSS Integration Survival Guide (forthcoming)
Regulation Reference
Full Citation: Peraturan Menteri Lingkungan Hidup dan Kepala Badan Pengendalian Lingkungan Hidup Nomor 22 Tahun 2025 tentang Kewenangan Penerbitan Persetujuan Lingkungan (Ministerial/Agency Regulation Number 22 of 2025 on Authority for Issuing Environmental Approvals)
- Promulgated: October 22, 2025
- Effective: October 27, 2025 (Article 16)
- Signed by: HANIF FAISOL NUROFIQ (Minister of Environment and Head of Environmental Control Agency)
Legal Analysis by the CRPG Environmental Law Team | Analysis Date: November 16, 2025 | Regulation Effective: October 27, 2025
LEGAL DISCLAIMER: This article is provided for informational and educational purposes only and does not constitute legal advice, legal opinion, or professional consultation. The analysis presented herein is based on the authors' interpretation of PERMEN LH 22/2025 and related regulations as of the publication date and may contain errors, omissions, or inaccuracies despite reasonable efforts to ensure accuracy. Laws and regulations are subject to amendment, judicial interpretation, and administrative clarification that may affect the applicability or interpretation of the provisions discussed. This article does not create an attorney-client relationship between the authors, the Center for Regulation, Policy and Government (CRPG), and any reader. Readers should not act or refrain from acting based solely on the information contained in this article without seeking appropriate legal counsel from qualified Indonesian legal practitioners licensed to practice environmental and administrative law. The application of environmental approval authority criteria under PERMEN LH 22/2025 depends on specific factual circumstances including precise geographic coordinates, cadastral boundaries, project technical specifications, and integration with the Online Single Submission (OSS) system, all of which require case-specific legal analysis. Neither the authors nor CRPG assume any liability for actions taken or not taken based on information in this article, nor for any direct, indirect, incidental, consequential, or punitive damages arising from use of or reliance on this material. For specific legal guidance on environmental permit applications, authority determination, or compliance matters under PERMEN LH 22/2025, consult with qualified legal counsel familiar with Indonesian environmental law and current regulatory practice.