The Omnibus law* changes Indonesia’s environmental legal framework with comprehensive provisions on environmental protection and management. To implement those provisions, the Indonesian government has just issued new Regulation 22**.

One important change brought about by Regulation 22 relates to environmental licensing for businesses.

Now, instead of needing to acquire an environmental licence, in Indonesian, Izin Lingkungan, businesses must obtain an Environmental Approval, in Indonesian, (Persetujuan Lingkungan). An Environmental Approval must be obtained prior to obtaining a business licence.

An Environmental Approval will be valid for the term of the business licence. An Environmental Approval can be either:

• a feasibility decree for business activities that significantly impact the environment; or
• a statement of capability in environmental management for businesses whose activities do not significantly impact the environment and who must have an environment management and monitoring programme, in Indonesian, Upaya Pengelolaan Lingkungan Hidup dan Upaya Pemantauan Lingkungan Hidup.

Businesses that do not fall under the above categories do not need to obtain an Environmental Approval but must prepare their own statement of capability in environmental management and monitoring. This statement will be integrated with the Business Identification Number (Nomor Induk Berusaha) of the business.

Whether a business must obtain an Environmental Approval or prepare its own statement of capability will depend on various factors. Regulation 22 sets out the rules by which businesses may judge whether they need to get the approval and which type of approval they should apply for.

The Omnibus Law and Regulation 22 also set out means by which micro and small enterprises will be assisted by the government to make their environmental approval applications.

Any environmental licences and documents issued prior to Regulation 22 will remain valid.

*Law Number 11 of 2020 on Job Creation. This Law Number 11 amended the primary environmental regulation, Law Number 32 of 2009 on Environmental Protection and Management.
** Government Regulation Number 22 of 2021 on the Implementation of Environmental Protection and Management.