Understanding Indonesia's Environmental Approval System: The Complete Permit Hierarchy Under PP 22/2021
1.0 Executive Summary
Indonesia's environmental regulatory framework under PP 22/2021 establishes a structured approval system that every business must navigate. At the apex sits Persetujuan Lingkungan (Environmental Approval), which serves as the mandatory prerequisite for business licensing. This approval is obtained through one of three pathways depending on the environmental impact level: AMDAL for significant impacts, UKL-UPL for moderate impacts, or SPPL for low impacts. Certain activities additionally require Persetujuan Teknis (Technical Approval) for specific environmental standards such as wastewater discharge.
Understanding this hierarchy is essential for compliance planning. A business cannot obtain its operating license without first securing the appropriate environmental approval. The approval type determines documentation requirements, assessment processes, and ongoing monitoring obligations. This article maps the complete permit structure and explains how each component relates to the others.
2.0 The Environmental Approval Framework
2.1 Universal Requirement
Article 3 of PP 22/2021 establishes Persetujuan Lingkungan as a universal requirement for all economic activities with environmental implications.
Pasal 3 Ayat (1):
Persetujuan Lingkungan sebagaimana dimaksud dalam Pasal 2 huruf a wajib dimiliki oleh setiap Usaha dan/atau Kegiatan yang memiliki Dampak Penting atau tidak penting terhadap lingkungan.
Every Business and Activity, whether it has significant or non-significant environmental impact, must obtain Environmental Approval. This requirement applies to both private business operators and government agencies conducting activities with environmental implications.
2.2 Prerequisite Status
Environmental Approval functions as a gateway to business licensing. Article 3 paragraph 3 explicitly establishes this relationship.
Pasal 3 Ayat (3):
Persetujuan Lingkungan sebagaimana dimaksud pada ayat (2) menjadi prasyarat penerbitan Perizinan Berusaha atau Persetujuan Pemerintah.
No business license can be issued without the prerequisite Environmental Approval. This creates a compliance sequence where environmental assessment must precede commercial operations. Businesses attempting to shortcut this process face licensing rejection and potential administrative sanctions.
3.0 Three-Tier Document System
3.1 Document Hierarchy
Article 4 establishes the three environmental documents that form the basis for Environmental Approval.
Pasal 4:
Setiap rencana Usaha dan/atau Kegiatan yang berdampak terhadap Lingkungan Hidup wajib memiliki:
a. Amdal;
b. UKL-UPL; atau
c. SPPL.
| Document | Full Name | Impact Level | Assessment Process |
|---|---|---|---|
| AMDAL | Analisis Mengenai Dampak Lingkungan Hidup | Significant (Dampak Penting) | Full feasibility assessment by assessment committee |
| UKL-UPL | Upaya Pengelolaan Lingkungan Hidup - Upaya Pemantauan Lingkungan Hidup | Non-significant but above SPPL threshold | Form review by environmental authority |
| SPPL | Surat Pernyataan Kesanggupan Pengelolaan dan Pemantauan Lingkungan Hidup | Low impact | Self-declaration |
3.2 Two Pathways to Approval
Article 3 paragraph 4 specifies the two formal pathways for obtaining Environmental Approval.
Pasal 3 Ayat (4):
Persetujuan Lingkungan sebagaimana dimaksud pada ayat (3) dilakukan melalui:
a. penyusunan Amdal dan uji kelayakan Amdal; atau
b. penyusunan Formulir UKL-UPL dan pemeriksaan Formulir UKL-UPL.
For AMDAL activities, the pathway involves document preparation followed by feasibility assessment. For UKL-UPL activities, the pathway involves form preparation and review. SPPL follows a simplified self-declaration process outside these two formal pathways but still results in Environmental Approval through the capability statement mechanism.
4.0 Technical Approval Integration
4.1 Embedded Technical Approvals
Beyond the umbrella Environmental Approval, certain activities require additional Persetujuan Teknis (Technical Approval) for specific environmental standards. Articles 43 and 57 establish that Technical Approvals are embedded within Environmental Approvals when applicable.
Pasal 43 Ayat (3) - AMDAL Approval Contents:
Keputusan Kelayakan Lingkungan Hidup sebagaimana dimaksud pada ayat (1) paling sedikit memuat:
a. Persetujuan Teknis dalam hal rencana Usaha dan/atau Kegiatan mewajibkan Persetujuan Teknis;
b. ringkasan dan dasar pertimbangan Kelayakan Lingkungan Hidup;
c. arahan pengelolaan dan pemantauan Lingkungan Hidup; dan
d. tanggal penetapan.
The Environmental Feasibility Decision for AMDAL activities must include Technical Approval when the activity type requires it. This integration means that for activities requiring both assessments, they are processed together rather than as separate applications.
4.2 Technical Approval Triggers
Article 131 identifies the activity types that trigger Technical Approval requirements, particularly for wastewater management.
Pasal 131 Ayat (2):
Baku Mutu Air Limbah sebagaimana dimaksud pada ayat (1) diterapkan pada Usaha dan/atau Kegiatan yang melakukan kegiatan:
a. pembuangan Air Limbah ke Badan Air permukaan;
b. pembuangan dan/atau pemanfaatan Air Limbah ke formasi tertentu;
c. pemanfaatan Air Limbah untuk aplikasi ke tanah; dan/atau
d. bentuk pembuangan dan/atau pemanfaatan Air Limbah lainnya sesuai dengan perkembangan ilmu pengetahuan dan teknologi.
Any business discharging wastewater to surface water, injecting to geological formations, or applying wastewater to land requires Technical Approval for wastewater quality standard compliance. This Technical Approval is obtained as part of the Environmental Approval process.
5.0 Technical Approval Contents
5.1 Required Elements
Article 138 specifies what Technical Approval for wastewater must contain.
Pasal 138 Ayat (1):
Persetujuan Teknis untuk pemenuhan Baku Mutu Air Limbah sebagaimana dimaksud dalam Pasal 137 huruf a memuat:
a. standar teknis pemenuhan Baku Mutu Air Limbah;
b. standar kompetensi sumber daya manusia; dan
c. sistem manajemen lingkungan.
Technical Approval establishes specific compliance parameters, human resource competency requirements, and environmental management system obligations tailored to the specific activity.
5.2 Technical Standards Detail
Pasal 138 Ayat (2):
Standar teknis pemenuhan Baku Mutu Air Limbah sebagaimana dimaksud pada ayat (1) huruf a meliputi:
a. parameter dan nilai Baku Mutu Air Limbah;
b. desain instalasi pengolahan Air Limbah;
c. titik penaatan dengan nama dan titik koordinat;
d. titik pembuangan dan/atau pemanfaatan Air Limbah dan titik koordinat;
e. titik pemantauan pada Badan Air permukaan, air tanah, dan/atau tanah dengan nama dan titik koordinat;
f. biaya Perlindungan dan Pengelolaan Mutu Air;
g. kewajiban; dan
h. larangan.
| Element | Description | Purpose |
|---|---|---|
| Parameters & Values | Specific pollutant limits | Define compliance thresholds |
| Treatment Design | IPAL specifications | Ensure treatment adequacy |
| Compliance Points | GPS coordinates | Enable monitoring verification |
| Discharge Points | GPS coordinates | Control discharge locations |
| Monitoring Points | GPS coordinates | Track environmental quality |
| Cost Requirements | Financial provisions | Ensure ongoing management |
| Obligations | Mandatory actions | Specify compliance duties |
| Prohibitions | Forbidden actions | Prevent harmful practices |
6.0 Approval Lifecycle
6.1 Termination
Environmental Approval is tied to the business license lifecycle. Article 3 paragraph 5 establishes concurrent termination.
Pasal 3 Ayat (5):
Persetujuan Lingkungan sebagaimana dimaksud pada ayat (3) berakhir bersamaan dengan berakhirnya Perizinan Berusaha atau Persetujuan Pemerintah.
When a business license expires or terminates, the associated Environmental Approval also ends. This linkage ensures that environmental obligations remain connected to active business operations.
6.2 Renewal Provisions
Article 3 paragraph 6 provides for simplified renewal when business operations remain unchanged.
Pasal 3 Ayat (6):
Dalam hal Perizinan Berusaha berakhir sebagaimana dimaksud pada ayat (5) dan tidak terjadi perubahan Usaha dan/atau Kegiatan, perpanjangan Perizinan Berusaha dapat menggunakan dasar Persetujuan Lingkungan yang eksisting.
If a business license expires but the business activity remains unchanged, the license extension can rely on the existing Environmental Approval. This provision reduces administrative burden for stable operations while maintaining environmental accountability through the original approval conditions.
7.0 Application Process
7.1 Submission Channel
Article 135 establishes the application process for Technical Approvals and specifies electronic submission requirements.
Pasal 135 Ayat (1):
Penanggung jawab Usaha dan/atau Kegiatan mengajukan permohonan Persetujuan Teknis pemenuhan Baku Mutu Air Limbah sebagaimana dimaksud dalam Pasal 43 ayat (3) huruf a dan Pasal 57 ayat (4) huruf a kepada Menteri, gubernur, atau bupati/wali kota sesuai dengan kewenangannya.
Applications go to the Minister, governor, or regent/mayor depending on the authority level established by the regulation. Authority is generally determined by the scale and location of the activity.
Pasal 135 Ayat (3):
Permohonan sebagaimana dimaksud pada ayat (2) disampaikan melalui sistem informasi dokumen lingkungan untuk Persetujuan Teknis pemenuhan Baku Mutu Air Limbah.
All applications must be submitted through the environmental document information system. This electronic processing ensures tracking, standardization, and transparency in the approval process.
8.0 Decision Outcomes
8.1 Approval or Rejection
Article 137 specifies the two possible outcomes from substantive assessment.
Pasal 137:
Dalam hal hasil penilaian substansi sebagaimana dimaksud dalam Pasal 136 ayat (2) menunjukkan:
a. memenuhi persyaratan Persetujuan Teknis, pejabat sebagaimana dimaksud dalam Pasal 135 ayat (5) menerbitkan Persetujuan Teknis untuk pemenuhan Baku Mutu Air Limbah; atau
b. tidak memenuhi persyaratan Persetujuan Teknis, pejabat sebagaimana dimaksud dalam Pasal 135 ayat (5) menerbitkan penolakan Persetujuan Teknis untuk pemenuhan Baku Mutu Air Limbah disertai alasan penolakan.
Applications meeting requirements receive Technical Approval. Applications failing to meet requirements receive rejection with stated reasons, allowing applicants to understand what corrections would be necessary for resubmission.
9.0 Implementation Implications
The permit hierarchy under PP 22/2021 creates clear compliance requirements for businesses. Understanding which documents and approvals apply to a specific activity is the essential first step in compliance planning.
For businesses with significant environmental impact, the full AMDAL pathway requires substantial upfront investment in environmental assessment. For moderate-impact activities, UKL-UPL provides a more streamlined pathway. Low-impact activities benefit from the simplified SPPL declaration process.
Technical Approvals add specificity where activities involve particular environmental media such as water bodies. Rather than processing separately, these approvals integrate into the umbrella Environmental Approval, creating a comprehensive permit package.
The integration of Environmental Approval with business licensing ensures that environmental compliance cannot be bypassed or deferred. Businesses must complete environmental assessment before beginning operations, establishing environmental management as a foundational requirement rather than an afterthought.
10.0 Conclusion
Indonesia's environmental permit hierarchy under PP 22/2021 establishes Persetujuan Lingkungan as the mandatory gateway to business licensing. This Environmental Approval is obtained through AMDAL, UKL-UPL, or SPPL depending on impact level, with Technical Approvals embedded for activities requiring specific environmental standards compliance.
The system ensures that environmental considerations are integrated into business planning from the earliest stages. By requiring Environmental Approval before business licensing, Indonesia creates an enforcement mechanism that cannot be circumvented through commercial shortcuts. Businesses operating without proper environmental approvals face licensing rejection and administrative sanctions, making compliance both a legal requirement and a practical necessity for commercial operation.
Official Sources
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