What Environmental Approval Requirements Apply Under PP 22/2021?
Introduction: Indonesia's Comprehensive Environmental Protection Framework
On February 2, 2021, Indonesia implemented a comprehensive regulatory framework that fundamentally restructures environmental protection and management across all sectors. Peraturan Pemerintah Nomor 22 Tahun 2021 tentang Penyelenggaraan Perlindungan dan Pengelolaan Lingkungan Hidup (Government Regulation No. 22 of 2021 on Environmental Protection and Management) establishes mandatory environmental approval requirements for every business activity with potential environmental impacts. This regulation consolidates and updates five previous environmental regulations, creating a unified framework that addresses environmental approval (Persetujuan Lingkungan), water quality protection, air quality management, marine environmental protection, pollution control, and hazardous waste management.
The regulation's most significant innovation is the introduction of a three-tiered environmental approval system that categorizes business activities based on environmental impact significance. Article 4 of PP 22/2021 mandates that "Setiap rencana Usaha dan/atau Kegiatan yang berdampak terhadap Lingkungan Hidup wajib memiliki: a. Amdal; b. UKL-UPL; atau c. SPPL" (Every planned Business and/or Activity that impacts the Environment must have: a. AMDAL; b. UKL-UPL; or c. SPPL). This mandatory requirement applies universally—no business or government activity with environmental impacts can proceed without obtaining one of these three environmental approval instruments.
The regulation fundamentally changes Indonesia's approach to environmental compliance by establishing environmental approval as a prerequisite for business licensing. Article 3(3) explicitly states that "Persetujuan Lingkungan menjadi prasyarat penerbitan Perizinan Berusaha atau Persetujuan Pemerintah" (Environmental Approval becomes a prerequisite for issuing Business Licensing or Government Approval). This means businesses cannot obtain operational permits without first securing environmental approval through one of the three designated instruments. The regulation integrates with Indonesia's Online Single Submission (OSS) system, creating a streamlined digital pathway for environmental compliance that connects environmental approval with business licensing.
PP 22/2021 adopts the "ultimum remedium" principle for enforcement, implementing graduated administrative sanctions that escalate based on non-compliance severity. The regulation empowers environmental supervision officials (Pejabat Pengawas Lingkungan Hidup) with comprehensive monitoring authority to ensure businesses implement their approved environmental management plans as stated in their environmental approval documents. The regulation represents Indonesia's commitment to balancing economic development with environmental sustainability, creating clear regulatory pathways that enable businesses to operate legally while protecting Indonesia's natural resources for future generations.
This comprehensive analysis examines PP 22/2021's environmental approval requirements, focusing on the three approval instruments, their application criteria, implementation procedures, and practical implications for businesses and government agencies operating in Indonesia. Understanding these requirements is essential for compliance with Indonesia's environmental protection framework and avoiding enforcement actions that can halt business operations.
1.0 The Three-Tiered Approval System: AMDAL, UKL-UPL, and SPPL
Article 1 of PP 22/2021 defines "Persetujuan Lingkungan" (Environmental Approval) as "Keputusan Kelayakan Lingkungan Hidup atau pernyataan Kesanggupan Pengelolaan Lingkungan Hidup yang telah mendapatkan persetujuan dari Pemerintah Pusat atau Pemerintah Daerah" (Environmental Feasibility Decision or Environmental Management Capability Statement that has received approval from the Central Government or Regional Government). This definition establishes environmental approval as a formal government decision that evaluates whether a business activity can proceed without causing unacceptable environmental damage. The regulation distinguishes between two approval pathways: environmental feasibility decisions for high-impact activities requiring comprehensive environmental impact assessments, and environmental management capability statements for medium and low-impact activities requiring simplified documentation.
The three-tiered system categorizes business activities based on environmental impact significance, creating distinct approval pathways matched to environmental risk levels. AMDAL (Analisis Mengenai Dampak Lingkungan Hidup) represents the most rigorous approval instrument, defined in Article 1(5) as "kajian mengenai dampak penting pada Lingkungan Hidup dari suatu usaha dan/atau kegiatan yang direncanakan, untuk digunakan sebagai prasyarat pengambilan keputusan tentang penyelenggaraan usaha dan/atau kegiatan" (assessment of significant environmental impacts from a planned business and/or activity, to be used as a prerequisite for decision-making regarding business and/or activity implementation). AMDAL applies to activities with significant environmental impacts, requiring comprehensive scientific assessment of potential environmental changes.
UKL-UPL (Upaya Pengelolaan Lingkungan Hidup - Upaya Pemantauan Lingkungan Hidup) serves medium-risk activities without significant environmental impacts, defined in Article 1(6) as "rangkaian proses pengelolaan dan pemantauan Lingkungan Hidup yang dituangkan dalam bentuk standar untuk digunakan sebagai prasyarat pengambilan keputusan" (series of environmental management and monitoring processes documented in standard form to be used as decision-making prerequisites). UKL-UPL requires businesses to document environmental management measures and monitoring procedures using standardized forms, without requiring the comprehensive scientific assessment mandated for AMDAL.
SPPL (Surat Pernyataan Kesanggupan Pengelolaan dan Pemantauan Lingkungan Hidup) represents the simplest approval instrument for low-risk activities, defined in Article 1(10) as "pernyataan kesanggupan dari penanggung jawab Usaha dan/atau Kegiatan untuk melakukan pengelolaan dan pemantauan Lingkungan Hidup atas Dampak Lingkungan Hidup dari Usaha dan/atau Kegiatannya di luar Usaha dan/atau Kegiatan yang wajib Amdal atau UKL-UPL" (capability statement from the business and/or activity coordinator to conduct environmental management and monitoring for environmental impacts from their business and/or activity outside of activities requiring AMDAL or UKL-UPL). SPPL functions as a self-declaration where business operators certify their commitment to managing minimal environmental impacts without government pre-assessment.
The three instruments create a proportional regulatory framework where compliance complexity matches environmental risk. High-impact activities undergo rigorous scientific assessment through AMDAL, medium-impact activities submit standardized management plans through UKL-UPL, and low-impact activities make capability commitments through SPPL. This tiered approach prevents regulatory over-burden on low-risk activities while ensuring comprehensive oversight of environmentally significant operations. Matrix 1.1 below details the three approval instruments with their legal definitions, risk classifications, and regulatory purposes.
Matrix 1.1: Three Environmental Approval Instruments Under PP 22/2021
| No. | Instrument | Indonesian Term | Definition | Impact Level | Approval Authority | Article Reference |
|---|---|---|---|---|---|---|
| 1.1 | AMDAL | Analisis Mengenai Dampak Lingkungan Hidup | Comprehensive assessment of significant environmental impacts from planned activities | High (Significant Environmental Impact) | Central/Regional Government based on location | Article 1(5), Article 4(a) |
| 1.2 | UKL-UPL | Upaya Pengelolaan Lingkungan Hidup - Upaya Pemantauan Lingkungan Hidup | Environmental management and monitoring processes in standardized form | Medium (Non-Significant Impact) | Central/Regional Government based on location | Article 1(6), Article 4(b) |
| 1.3 | SPPL | Surat Pernyataan Kesanggupan Pengelolaan dan Pemantauan Lingkungan Hidup | Self-declaration of environmental management capability | Low (Minimal Impact) | Self-declaration with notification | Article 1(10), Article 4(c) |
2.0 AMDAL Requirements: High-Impact Activity Assessment
Article 5(1) of PP 22/2021 establishes the mandatory AMDAL requirement: "Amdal wajib dimiliki bagi setiap rencana Usaha dan/atau Kegiatan yang memiliki Dampak Penting terhadap Lingkungan Hidup" (AMDAL must be held for every planned Business and/or Activity that has Significant Impacts on the Environment). This provision creates an absolute obligation—businesses cannot avoid AMDAL requirements if their activities meet the criteria for significant environmental impacts. The regulation defines two primary criteria triggering AMDAL requirements: activities with inherent scale or characteristics causing significant impacts, and activities located within or directly adjacent to protected areas regardless of scale.
Article 5(2) specifies the two AMDAL triggers: "Rencana Usaha dan/atau Kegiatan yang wajib memiliki Amdal meliputi: a. jenis rencana Usaha dan/atau Kegiatan yang besaran/skalanya wajib Amdal; dan/atau b. jenis rencana Usaha dan/atau Kegiatan yang lokasi Usaha dan/atau Kegiatan dilakukan di dalam dan/atau berbatasan langsung dengan kawasan lindung" (Planned Business and/or Activity that must have AMDAL includes: a. types of planned Business and/or Activity where size/scale requires AMDAL; and/or b. types of planned Business and/or Activity where the Business and/or Activity location is conducted within and/or directly adjacent to protected areas). The first criterion focuses on activity scale—certain industries automatically require AMDAL based on production capacity, land area, or other quantifiable thresholds specified in ministerial regulations. The second criterion focuses on location sensitivity—any activity within or directly bordering protected areas triggers AMDAL requirements to assess potential impacts on conservation functions.
The regulation defines "directly adjacent" with precision in Article 5(4), stating activities meeting this criterion include those where "batas tapak proyeknya bersinggungan langsung dengan batas kawasan lindung; dan/atau berdasarkan pertimbangan ilmiah memiliki potensi dampak yang mempengaruhi fungsi kawasan lindung tersebut" (project site boundary directly touches the protected area boundary; and/or based on scientific consideration has potential impacts affecting the protected area's function). This two-part definition addresses both physical proximity and functional impact. Activities physically touching protected area boundaries automatically trigger AMDAL requirements, while activities near but not touching protected areas may still require AMDAL if scientific assessment demonstrates potential impact on conservation functions.
Article 8 enumerates nine criteria defining significant environmental impacts: transformation of land form and landscape; exploitation of renewable or non-renewable natural resources; processes potentially causing environmental pollution or damage and resource waste; processes affecting natural, built, and socio-cultural environments; processes affecting conservation area preservation or cultural heritage protection; introduction of plant, animal, or microbial species; creation and use of biological and non-biological materials; high-risk activities affecting national defense; and application of technology with potential for major environmental influence. These criteria establish broad coverage—activities meeting any single criterion potentially require AMDAL assessment, subject to scale thresholds and ministerial specifications.
The AMDAL process involves preparing three core documents: Kerangka Acuan (Terms of Reference) defining assessment scope through scoping processes, ANDAL (Environmental Impact Analysis) providing comprehensive impact assessment, and RKL-RPL (Environmental Management and Monitoring Plans) specifying mitigation and monitoring measures. Businesses submit these documents to environmental agencies, which convene Environmental Feasibility Assessment Commissions (Komisi Uji Kelayakan Lingkungan Hidup) comprising government officials, independent experts, and community representatives. The commission reviews AMDAL documents and issues Environmental Feasibility Decisions (Keputusan Kelayakan Lingkungan Hidup) approving or rejecting the activity. Matrix 2.1 below details AMDAL application triggers and requirements.
Matrix 2.1: AMDAL Application Criteria and Requirements
| No. | Trigger Category | Criteria | Indonesian Legal Text | AMDAL Documents Required | Article Reference |
|---|---|---|---|---|---|
| 2.1 | Scale-Based | Activities with size/scale meeting ministerial thresholds | besaran/skalanya wajib Amdal | Kerangka Acuan, ANDAL, RKL-RPL | Article 5(2)(a) |
| 2.2 | Location-Based: Within Protected Area | Activities conducted inside protected areas (as permitted by law) | lokasi di dalam kawasan lindung | Kerangka Acuan, ANDAL, RKL-RPL | Article 5(2)(b), Article 5(3) |
| 2.3 | Location-Based: Adjacent to Protected Area | Project boundary directly touches protected area boundary | batas tapak proyek bersinggungan langsung | Kerangka Acuan, ANDAL, RKL-RPL | Article 5(4)(a) |
| 2.4 | Location-Based: Functional Impact | Scientific assessment shows potential impact on protected area function | berdasarkan pertimbangan ilmiah memiliki potensi dampak | Kerangka Acuan, ANDAL, RKL-RPL + Scientific Justification | Article 5(4)(b), Article 5(5) |
Matrix 2.2: Nine Criteria for Significant Environmental Impacts
| No. | Impact Criterion | Description | Example Activities | Article Reference |
|---|---|---|---|---|
| 2.5 | Land Transformation | Changing land form and landscape | Mining, land reclamation, major construction | Article 8(a) |
| 2.6 | Resource Exploitation | Exploitation of renewable/non-renewable resources | Forestry, fisheries, oil and gas extraction | Article 8(b) |
| 2.7 | Pollution Potential | Processes potentially causing pollution/damage | Industrial facilities, waste facilities | Article 8(c) |
| 2.8 | Environmental Impacts | Affecting natural, built, socio-cultural environments | Infrastructure projects, settlements | Article 8(d) |
| 2.9 | Conservation Impact | Affecting conservation areas or cultural heritage | Activities near national parks, heritage sites | Article 8(e) |
3.0 UKL-UPL Requirements: Medium-Risk Activity Management
Article 6(1) of PP 22/2021 establishes UKL-UPL requirements: "UKL-UPL wajib dimiliki bagi Usaha dan/atau Kegiatan yang tidak memiliki Dampak Penting terhadap Lingkungan Hidup" (UKL-UPL must be held for Business and/or Activity that does not have Significant Impacts on the Environment). This provision creates a mandatory requirement for activities falling below AMDAL thresholds but still generating environmental impacts requiring management. UKL-UPL functions as Indonesia's primary environmental compliance instrument for medium-risk business activities, representing the majority of industrial, commercial, and service sector operations.
Article 6(2) specifies three UKL-UPL application criteria: "Rencana Usaha dan/atau Kegiatan yang wajib memiliki UKL-UPL meliputi: a. jenis rencana Usaha dan/atau Kegiatan yang tidak memiliki Dampak Penting; b. jenis rencana Usaha dan/atau Kegiatan yang lokasi Usaha dan/atau Kegiatan dilakukan di luar dan/atau tidak berbatasan langsung dengan kawasan lindung; dan c. termasuk jenis rencana Usaha dan/atau Kegiatan yang dikecualikan dari wajib Amdal" (Planned Business and/or Activity that must have UKL-UPL includes: a. types of planned Business and/or Activity that do not have Significant Impacts; b. types of planned Business and/or Activity where location is conducted outside and/or not directly adjacent to protected areas; and c. types of planned Business and/or Activity excluded from AMDAL requirements). These three criteria work together—activities require UKL-UPL when they lack significant environmental impacts, operate outside protected area proximity, or qualify for specific AMDAL exemptions.
The UKL-UPL process uses standardized forms (Formulir UKL-UPL) defined in Article 1(16) as "isian ruang lingkup UKL-UPL" (form filling the scope of UKL-UPL). These standardized forms simplify compliance compared to AMDAL's comprehensive scientific assessments, allowing businesses to document environmental management measures using pre-structured templates. Businesses complete two integrated components: UKL (Upaya Pengelolaan Lingkungan Hidup) specifying environmental management measures to prevent, minimize, or mitigate environmental impacts, and UPL (Upaya Pemantauan Lingkungan Hidup) specifying environmental monitoring procedures to track environmental conditions and management measure effectiveness.
Environmental agencies review UKL-UPL forms for administrative completeness and technical adequacy, verifying that proposed management measures appropriately address identified environmental impacts. Upon approval, agencies issue "Pernyataan Kesanggupan Pengelolaan Lingkungan Hidup" (Environmental Management Capability Statement) defined in Article 1(9) as "standar pengelolaan Lingkungan Hidup dan pemantauan Lingkungan Hidup dari penanggung jawab Usaha dan/atau Kegiatan yang telah mendapatkan persetujuan dari Pemerintah Pusat atau Pemerintah Daerah bagi Usaha dan/atau Kegiatan yang wajib UKL-UPL" (environmental management and monitoring standard from the business and/or activity coordinator that has received approval from Central Government or Regional Government for Business and/or Activity requiring UKL-UPL). This approval constitutes environmental approval satisfying Article 3(3)'s prerequisite for business licensing.
The regulation integrates UKL-UPL with the business licensing process through the OSS system, enabling businesses to submit UKL-UPL forms electronically during business license applications. This integration streamlines compliance by consolidating environmental approval and business licensing into unified digital processes. Businesses receive environmental approval and business licensing simultaneously upon satisfying all requirements, eliminating the sequential processes that previously delayed business operations. Matrix 3.1 below details UKL-UPL application criteria and procedures.
Matrix 3.1: UKL-UPL Application Criteria and Procedures
| No. | Criterion | Description | Indonesian Legal Text | Form Requirements | Approval Output | Article Reference |
|---|---|---|---|---|---|---|
| 3.1 | Non-Significant Impact | Activities without significant environmental impacts | tidak memiliki Dampak Penting | Formulir UKL-UPL (UKL section + UPL section) | Pernyataan Kesanggupan Pengelolaan Lingkungan Hidup | Article 6(2)(a), Article 1(9) |
| 3.2 | Outside Protected Areas | Location outside and not directly adjacent to protected areas | di luar dan/atau tidak berbatasan langsung dengan kawasan lindung | Formulir UKL-UPL | Pernyataan Kesanggupan Pengelolaan Lingkungan Hidup | Article 6(2)(b) |
| 3.3 | AMDAL Exemptions | Activities excluded from AMDAL requirements | dikecualikan dari wajib Amdal | Formulir UKL-UPL | Pernyataan Kesanggupan Pengelolaan Lingkungan Hidup | Article 6(2)(c), Article 10 |
4.0 SPPL Requirements: Low-Risk Activity Self-Declaration
Article 7(1) of PP 22/2021 establishes SPPL requirements: "SPPL wajib dimiliki bagi Usaha dan/atau Kegiatan yang tidak memiliki Dampak Penting terhadap Lingkungan Hidup dan tidak termasuk dalam kriteria wajib UKL-UPL" (SPPL must be held for Business and/or Activity that does not have Significant Impacts on the Environment and is not included in UKL-UPL mandatory criteria). SPPL serves as the environmental compliance instrument for Indonesia's lowest-risk business activities, including micro and small enterprises and activities with minimal environmental impacts. Unlike AMDAL and UKL-UPL requiring government review and approval, SPPL functions as a self-declaration where businesses certify their environmental management commitments without pre-approval.
Article 7(2) specifies three SPPL application criteria: "Rencana Usaha dan/atau Kegiatan yang wajib memiliki SPPL meliputi: a. jenis rencana Usaha dan/atau Kegiatan yang tidak memiliki Dampak Penting dan tidak wajib UKL-UPL; b. merupakan Usaha dan/atau Kegiatan Usaha mikro dan kecil yang tidak memiliki Dampak penting terhadap Lingkungan Hidup; dan/atau c. termasuk jenis rencana Usaha dan/atau Kegiatan yang dikecualikan dari wajib UKL-UPL" (Planned Business and/or Activity that must have SPPL includes: a. types of planned Business and/or Activity that do not have Significant Impacts and are not required to have UKL-UPL; b. micro and small Business and/or Activity that do not have significant impacts on the Environment; and/or c. types of planned Business and/or Activity excluded from UKL-UPL requirements). These criteria target activities below UKL-UPL thresholds—primarily micro and small enterprises, service businesses, and low-impact commercial activities.
SPPL as defined in Article 1(10) functions as "pernyataan kesanggupan dari penanggung jawab Usaha dan/atau Kegiatan untuk melakukan pengelolaan dan pemantauan Lingkungan Hidup atas Dampak Lingkungan Hidup dari Usaha dan/atau Kegiatannya" (capability statement from business and/or activity coordinator to conduct environmental management and monitoring for environmental impacts from their business and/or activity). The SPPL process requires businesses to complete a standardized statement form certifying they will manage and monitor environmental impacts according to applicable environmental standards. This self-declaration approach recognizes that low-risk activities do not justify comprehensive government review, enabling simplified compliance while maintaining environmental accountability.
The SPPL system balances regulatory efficiency with environmental protection through post-approval monitoring rather than pre-approval assessment. Businesses submit SPPL statements when applying for business licenses through the OSS system, receiving immediate approval without government technical review. However, environmental supervision officials retain authority to inspect SPPL-holding businesses to verify compliance with stated environmental management commitments. Businesses failing to implement SPPL commitments face administrative sanctions despite the self-declaration nature of SPPL approval.
The SPPL instrument serves Indonesia's micro and small enterprise sector, representing over 99% of Indonesian businesses by count but typically generating minimal individual environmental impacts. By exempting these businesses from complex AMDAL or UKL-UPL requirements while maintaining basic environmental commitments through SPPL, the regulation balances environmental protection with economic development objectives. SPPL enables micro and small businesses to comply with environmental requirements without disproportionate compliance costs that could force business closures. Matrix 4.1 below details SPPL application criteria and implementation.
Matrix 4.1: SPPL Application Criteria and Implementation
| No. | Criterion | Description | Indonesian Legal Text | Documentation Required | Approval Process | Article Reference |
|---|---|---|---|---|---|---|
| 4.1 | Below UKL-UPL Threshold | Activities without significant impacts and not requiring UKL-UPL | tidak memiliki Dampak Penting dan tidak wajib UKL-UPL | SPPL Statement Form | Self-declaration (immediate approval) | Article 7(2)(a) |
| 4.2 | Micro/Small Enterprise | Micro and small businesses without significant environmental impacts | Usaha mikro dan kecil yang tidak memiliki Dampak penting | SPPL Statement Form | Self-declaration (immediate approval) | Article 7(2)(b) |
| 4.3 | UKL-UPL Exemptions | Activities excluded from UKL-UPL requirements | dikecualikan dari wajib UKL-UPL | SPPL Statement Form | Self-declaration (immediate approval) | Article 7(2)(c) |
5.0 Exemptions, Integration, and Enforcement
Article 10 of PP 22/2021 establishes comprehensive AMDAL exemptions for ten specific scenarios where environmental planning has already occurred at strategic or landscape levels. The most significant exemption applies to "lokasi rencana Usaha dan/atau Kegiatannya berada pada kabupaten/kota yang memiliki rencana detail tata ruang yang telah dilengkapi dengan kajian Lingkungan Hidup strategis yang dibuat dan dilaksanakan secara komprehensif dan rinci" (planned Business and/or Activity location in regency/city having detailed spatial plans equipped with comprehensive and detailed strategic environmental assessments). This exemption recognizes that areas with comprehensive strategic environmental assessments already account for environmental impacts at the planning level, making project-level AMDAL redundant. However, Article 11(1) clarifies that exempted activities must still obtain either UKL-UPL or SPPL—exemptions eliminate AMDAL requirements but do not eliminate all environmental approval obligations.
Article 3(3) integrates environmental approval with business licensing: "Persetujuan Lingkungan menjadi prasyarat penerbitan Perizinan Berusaha atau Persetujuan Pemerintah" (Environmental Approval becomes a prerequisite for issuing Business Licensing or Government Approval). This integration creates a mandatory sequence—businesses cannot obtain operational permits without first securing environmental approval through AMDAL, UKL-UPL, or SPPL. The regulation coordinates with Indonesia's OSS (Online Single Submission) system, enabling businesses to submit environmental approval documents electronically during business license applications. The OSS system automatically determines which environmental approval instrument applies based on business activity classification, location data, and production capacity entered by applicants.
Article 3(5) addresses approval validity: "Persetujuan Lingkungan berakhir bersamaan dengan berakhirnya Perizinan Berusaha atau Persetujuan Pemerintah" (Environmental Approval ends simultaneously with the end of Business Licensing or Government Approval). Environmental approvals remain valid for the duration of business licenses, typically renewable in coordination with license renewal. Article 3(6) allows businesses to use existing environmental approvals when renewing business licenses if activities remain unchanged: "perpanjangan Perizinan Berusaha dapat menggunakan dasar Persetujuan Lingkungan yang eksisting" (business license renewal can use existing Environmental Approval as basis). This provision prevents businesses from repeating entire environmental approval processes for license renewals when operations remain identical.
The regulation implements comprehensive enforcement through environmental supervision officials (Pejabat Pengawas Lingkungan Hidup) granted authority in Article 98 to monitor compliance with environmental approval commitments. Officials conduct regular inspections verifying businesses implement environmental management measures specified in AMDAL documents, UKL-UPL forms, or SPPL statements. Article 100 authorizes graduated administrative sanctions for non-compliance, including written warnings, operational restrictions, license suspension, and license revocation. The regulation adopts the "ultimum remedium" principle, using administrative sanctions as primary enforcement mechanisms before pursuing criminal prosecution for serious environmental violations.
Article 9 mandates ministerial evaluation of AMDAL, UKL-UPL, and SPPL type classifications every five years: "Menteri melakukan evaluasi terhadap jenis rencana Usaha dan/atau Kegiatan yang wajib dilengkapi dengan Amdal, UKL-UPL, dan SPPL paling sedikit setiap 5 (lima) tahun sekali" (Minister conducts evaluation of types of planned Business and/or Activity required to have AMDAL, UKL-UPL, and SPPL at least every 5 (five) years). This evaluation mechanism enables the regulatory framework to adapt to technological changes, new industries, and evolving environmental understanding. Ministerial evaluations can reclassify activities between approval instruments based on accumulated evidence about actual environmental impacts. Matrix 5.1 below details key implementation and enforcement provisions.
Matrix 5.1: Implementation and Enforcement Provisions
| No. | Provision Category | Requirement | Indonesian Legal Text | Implementation Mechanism | Article Reference |
|---|---|---|---|---|---|
| 5.1 | Business Licensing Integration | Environmental approval prerequisite for business license | Persetujuan Lingkungan menjadi prasyarat penerbitan Perizinan Berusaha | OSS system verification | Article 3(3) |
| 5.2 | Approval Validity | Environmental approval ends with business license | Persetujuan Lingkungan berakhir bersamaan dengan berakhirnya Perizinan Berusaha | Coordinated renewal | Article 3(5) |
| 5.3 | Renewal with Existing Approval | Unchanged activities use existing approvals for renewal | perpanjangan dapat menggunakan Persetujuan Lingkungan yang eksisting | OSS system recognition | Article 3(6) |
| 5.4 | Supervision Authority | Environmental officials monitor compliance | Pejabat Pengawas Lingkungan Hidup melakukan pengawasan | Inspection and monitoring | Article 98 |
| 5.5 | Administrative Sanctions | Graduated sanctions for non-compliance | Sanksi Administratif | Warnings, restrictions, suspension, revocation | Article 100 |
| 5.6 | Periodic Review | Ministerial evaluation every 5 years | evaluasi paling sedikit setiap 5 (lima) tahun sekali | Classification updates | Article 9 |
Conclusion
PP 22/2021 establishes Indonesia's comprehensive environmental approval framework, creating mandatory requirements for all business activities with environmental impacts. The regulation's three-tiered system—AMDAL for high-impact activities, UKL-UPL for medium-risk operations, and SPPL for low-risk enterprises—provides proportional compliance pathways matched to environmental risk levels. By integrating environmental approval with business licensing through the OSS system, the regulation streamlines compliance while ensuring environmental protection receives systematic consideration before business operations commence.
The regulation represents significant regulatory modernization, consolidating five previous environmental regulations into a unified framework that addresses environmental approval, pollution control, and resource protection comprehensively. Businesses operating in Indonesia must determine which environmental approval instrument applies to their activities based on scale, location, and impact significance, securing required approvals before obtaining operational permits. Understanding PP 22/2021's requirements is essential for legal compliance and avoiding enforcement actions that can halt business operations and impose significant penalties.
Regulation Reference
Full Citation:
Peraturan Pemerintah Republik Indonesia Nomor 22 Tahun 2021 tentang Penyelenggaraan Perlindungan dan Pengelolaan Lingkungan Hidup
English Translation:
Government Regulation of the Republic of Indonesia Number 22 of 2021 on Environmental Protection and Management
Short Citation:
PP 22/2021
Promulgation Date: February 2, 2021
Effective Date: February 2, 2021
Supersedes: Five previous environmental regulations (air pollution, marine pollution, water quality, hazardous waste, and environmental management)
Official Source: https://peraturan.bpk.go.id/Details/161852/pp-no-22-tahun-2021
Legal Analysis by the CRPG Environmental Law Team | Analysis Date: November 26, 2025 | Regulation Effective: February 2, 2021
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 PP 22/2021 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 law. The application of environmental approval requirements depends on specific factual circumstances including business activity type, production scale, location characteristics, protected area proximity, environmental impact magnitude, and OSS system integration status, 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 approval requirements under PP 22/2021, consult with qualified legal counsel familiar with Indonesian environmental and administrative law and current regulatory practice.
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