IndonesiaThe Republic of Indonesia is a country in the south part of the Southeast Asia comprising over 17,000 islands and stretching over 5,000 km from the East to West. With the land area of 1.89 million square kilometers, the country is known as a country with the largest number of islands in the world. It has the largest Muslim population in the world: the total population is about 260 million people and about 90% of them are Muslims. Indonesian is the national language but diverse local languages are used in everyday life because it is a multi-ethnic country. The largest ethnic group in Indonesia is Malay. For the demographic composition, the country has a large young population with about a half of the country’s population is 26 years old or younger. The so-called “demographic bonus,” which means a condition in which the productive age population is increasing, is expected to continue in Ind onesia until 2030.
In Indonesia, the constitution, which is the legal basis of the country and has the highest legal effect, was established in 1945 and amended in 1999, 2000, 2001, and 2002. In terms of the environment, the constitution guarantees the right to enjoy a good and healthy environment as one of fundamental human rights. Second, as one of the basic policies for the country’s economic growth, it mandates to have the environmental perspective among others.
Though there are diverse forms of legal documents in Indonesia, the hierarchy can be summarized as below. With the constitution at the top, there are laws with multiple subordinate government regulations as well as also multiple minister regulations (or decrees) under each of the government regulations. The minister regulations are important because they specify the details for various requirements stipulated by relevant laws and government regulations.
In Indonesia, each of local governments at the province level and regency/city level) is given the right to enact its own regulations. Therefore, with regard to environmental issues, close attentions should be paid on such local regulations not to miss rules on waste management or wastewater quality standards for example that are already enacted in some areas of the country. Please note that Indonesia has 34 provinces (including Special Region of Yogyakarta), 416 regencies and 98 cities[1].
The legal basis for Indonesia’s environmental management is the Law No. 32/2009 on Environmental Protection and Management (hereinafter referring to as the “Law 32/2009″). The Law 32/2009, which has replaced the Law No. 23/1997 on Environmental Management (hereinafter the “Law 23/1997”), covers issues related to the environment in general, providing principals on environmental impact assessment, hazardous substances management, hazardous waste management, water/air/soil conservation, and environmental rehabilitation. The Law 32/2009, which was promulgated in 2009, has included “sustainability” as one of basic principles for the country’s economic development. This inclusion is a major difference between the Law 32/2009 and the Law 23/1997. The enactment of the Law 32/2009 has strengthened the changing perception among Indonesian people, who had put the top and only priority on economic development. In addition, the Law 32/2009 has incorporated many advanced elements such as strategic environmental assessment (SEA), environmental economic methodology, ecoregional approach, and environmental permit scheme. Another characteristic feature of the Law 32/2009 is the strengthened power of the competent authorities[2] and the increased penalties[3].
The Law No. 32/2009 also sets penalties for environmental violations in detail. For violations of the Law (or its subordinate regulations), the penalties listed in the Table below are imposed. The maximum fine is 15 billion rupiah (about 1.07 million USD). The Law 32/2009 also allows to impose business closure as an additional penalty (Article 119). As seen above, penalties for environmental violations in Indonesia are far stricter compared to those of other ASEAN member countries. So close attention should be paid on the environmental compliance.
| Provisions | Violation | Punishment |
|---|---|---|
| Article 98 | Intentionally committing action causing air or water quality standard to be surpassed | Fine: Rp. 3–10 billion Imprisonment: 3–10 years |
| Article 99 | Causing air or water quality standard to be surpassed by negligence | Fine: Rp. 1–3 billion Imprisonment 1–3 years |
| Article 100 | Violating wastewater or emission quality standard more than once | Fine: up to Rp. 3 billion Imprisonment: up to 3 years |
| Article 102 | Treating hazardous and toxic substances (“B3”) without required permission | Fine: Rp.1-3 billion Imprisonment: up to 3 years |
| Article 103 | Producing hazardous and toxic wastes (“B3 wastes”) but not treating them as required by legislation | Fine: Rp. 1-3 billion Imprisonment: up to 3 years |
| Article 107 | Importing B3 that are forbidden by legislation to the territory of Indonesia | Fine: Rp. 5-15 billion Imprisonment: 5–15 years |
| Article 109 | Running business without environmental permission required by legislation | Fine: Rp. 1-3 billion Imprisonment: up to 3 years |
Under the Law 32/2009, various government regulations have been set on the management of chemical substances, wastes, water quality and air quality. There are also ministerial regulations/decrees under each government regulation stipulating detailed rules for implementing the regulations. In fact, to ensure the compliance with environmental regulations in Indonesia, it is critical to confirm mandated threshold values, documents to be submitted, application forms to be used, etc. that are set in various ministerial regulations/decrees. The hierarchy of these legal documents is as shown below. See the relevant section for details on each.
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In addition to Law No. 32/2009, laws governing EHS include the Laws on Solid Waste Management, Energy, Occupational Safety, and Manpower. The below indicates the overview of each law:
| LAW | Overview |
|---|---|
| Law on Municipal Waste Management | Law No. 18/2008. This Law controls management of general wastes including household garbage. Food wastes, paper wastes, used cans, used plastic bottles produced by factories or other industrial sites are also regulated by this Law and its subordinate regulations. |
| Law on Energy | Law No. 30/2007. This Law comprehensively controls the energy management in the country. Under this Law, a government regulation on energy saving and several ministerial regulations on energy efficiency (e.g. energy management at factories and buildings, energy efficiency labels for electrical appliances) have been enacted. |
| Law on Occupational Safety | Law No. 1/1970. This Law aims to ensure occupational safety of workers. It covers not only safety measures at factories (e.g. prevention of occupational injuries, fire prevention, and protective equipment for workers), but also those at construction and oil and gas development sites. |
| Law on Manpower | Law No. 13/2003. This Law controls labor in general (employment, wages, labor-management relations, dismissal, etc.) with Articles 86 and 87 stipulating occupational safety and health of workers. |
[1] Japan Bank for International Cooperation, “The Investment Environment in Indonesia”
https://www.jbic.go.jp/wp-content/uploads/page/2017/11/58771/inv_indonesia02.pdf
[2] Regarding environmental crimes, the Ministry of Environment and Forestry investigators are given the same authority as police investigators (Article 94 of the Law 32/2009)
[3] The penalties under Law 32/2009 are far stricter than those under Law 23/1997. So it caused a huge controversy across the country at the time of promulgation. For example, in March 2010, industry groups of oil and mining companies expressed their opposition to the Law 32/2009, saying the penalties would be too strict and hinder their operations. In addition, the Ministry of Energy and Mineral Resources also requested to postpone the enactment of the Law.
Framework of EHS laws and regulations in Indonesia.
| Category | Theme |
|---|---|
| Overall |
Overview, Environmental Standards Indonesia, Organizations with Governing Environmental Regulations |
| Chemical | Chemicals Control |
| Energy | Energy Conservation |
| Waste | Waste management |
| Air | Air Quality Control |
| Water | Water Quality Control |
| Soil | Soil Pollution Control |
| OSH | Occupational Safety and Health |
| Other Pollution | Noise, Vibration, Offensive Odor Control |
Indonesia
On October 5, 2022, the Food and Drug Monitoring Agency of Indonesia (BPOM) published the
Indonesia
In Indonesia, on September 13, 2022, “Presidential Instruction No. 7 of 2022 on the use of battery-based electric vehicles as official operational and personal vehicles of central government institutions and …
Indonesia
On October 3, 2022, the Ministry of Energy and Mineral Resources of Indonesia notified WTO/TBT of two draft decrees on the Minimum Energy Performance Standard (MEPS) for electric motor and …
Indonesia
On October 3, 2022, the Ministry of Energy and Mineral Resources of Indonesia notified WTO/TBT of six draft decrees of the minister on the Minimum Energy Performance Standard (MEPS) for …
Indonesia
In Indonesia, the Presidential Decree No. 112 of 2022 on the Acceleration of Renewable Energy Development for Electricity Generation was promulgated on September 13, 2022 and came into effect immediately. …
Indonesia
On July 5, 2022, the Decision of the Minister of Energy and Mineral Resources No. 135 of 2022 concerning Minimum Energy Performance Standard and Energy Saving Label for LED Lighting …
Indonesia
On July 27, 2022, the Food and Drug Monitoring Agency (BPOM) of Indonesia promulgated BPOM Regulation No.17 of 2022 amending part of BPOM Regulation No.23 of 2019 on Technical Requirements …
Indonesia
On April 4, 2022, the Indonesian National Standard SNI 7188-7:2022 on Ecolabeling Criteria for the Categories of Compostable Products, Product Packaging, and Bioplastic Containers (hereinafter “the Standard”) was promulgated in …
Indonesia
On Dec. 23, 2021, Indonesia introduced two Indonesian National Standards (SNI) for the Globally Harmonized System of Classification and Labeling of Chemicals (GHS). Both national standards are based on the …
Indonesia
The “Jakarta Governor Decree No. 102 of 2021 on Garbage Management Obligations in Regions and Companies” was enforced in Jakarta, Indonesia from June 9, 2022. This Decree was promulgated on …
Indonesia
“Mayor’s Regulation No. 16 of 2022 on the Reduction of the Use of Plastic Bags” was promulgated on March 9, 2022 in Surabaya, the capital of East Java, Indonesia. The …
Indonesia
NOTE: On July 27, 2022, the Food and Drug Monitoring Agency (BPOM) of Indonesia promulgated BPOM Regulation No.17 of 2022 amending part of BPOM Regulation No.23 of 2019 on Technical …
Indonesia
On February 10, 2022, the Regulation of the Minister of Trade No. 7 of 2022 Concerning Distribution and Control of Hazardous Substances was enacted in Indonesia and came into effect …
Indonesia
On December 31, 2021, the government of Indonesia established and enacted the Regulation of the Minister of Industry No. 36/2021 on Low Carbon Emission Four-wheeled Vehicles (hereinafter “the Regulation”). The …
Indonesia
On October 29, 2021, the Regulation of the Minister of Environment and Forestry No. 19/2021 on Management Procedure of Non-Hazardous and Toxic Waste was established in Indonesia and came into …
Indonesia
The Law No. 7 of 2021 on Harmonization of Taxation System was enacted in Indonesia on October 29, 2021, and came into effect on the same day. Article 13 of the …
Indonesia
On October 29, 2021, Indonesia’s President issued the Presidential Regulation No. 98 of 2021 on the Framework for Carbon Pricing to Achieve the Greenhouse Gas Reduction Target (Nationally Determined Contribution: …
Indonesia
On September 20, 2021, Indonesian government established three ministerial decisions stipulating the minimum energy performance standards (MEPS) and energy efficiency labels for refrigerators, fans, and rice cookers. These decisions will …
Indonesia
On August 16, 2021, the Decision of the Minister of Energy and Mineral Resources No.113/2021 on Minimum Energy Performance Standards and Energy Efficiency Labels for Air Conditioners were established in …
Indonesia
On July 21, 2021, the Government of Indonesia submitted to the United Nations Framework Convention on Climate Change (UNFCCC) Secretariat the Intended Nationally Determined Contribution (INDC) which sets targets for …
Indonesia
On June 22, 2021, the government of Indonesia promulgated and enacted the Regulation of the Minister of Energy and Mineral Resources No. 14/2021 on Application of Minimum Energy Performance Standards …
Indonesia
On May 24, 2021, the Minister of Environment and Forestry Regulation No. 13 of 2021 on Continuous Emission Monitoring System for Industrial Emissions was enacted in Indonesia and came into …
Indonesia
On July 13, 2021, the “Regulation of the Minister of Industry No. 13 of 2021 on the Recommendation of the Importation of Hazardous substances” was enacted in Indonesia and came …
Obligations of Taking Countermeasure against Pollution and Environmental Restoration under the Govenrmental Regulation No. 22 of 2021
Indonesia
When water pollution, air pollution, or hazardous waste contamination occurs, business entities shall take immediate countermeasures against the pollution/contamination. The countermeasure includes: Giving information and warning about the incident to …
Summary of Chapter 7 of the Govenrmental Regulation No. 22 of 2021: Management of B3 Waste and Non-B3 Waste (Articles 274 – 470)
Indonesia
Management of Hazardous and Poisonous Waste (B3 Waste) 1. General overview In general, there are two main business entity types that are covered by this Regulation: Business entities whose production …
Summary of Chapter 4 of the Govenrmental Regulation No. 22 of 2021: Protection and Management of Air Quality (Articles 163-219)
Indonesia
1. Air Quality Protection and Management Area The Regulation classifies the Air Quality Protection and Management Area, which is known as WPPMU, into several classes. Usage of such different WPPMU …
Indonesia, General overview of Government Regulation No. 22 of 2021 on Environmental Protection and Management
Indonesia
Government Regulation No. 22 of 2021 on Environmental Protection and Management: General overview Overview of Environmental Approval Mechanism Summary of Chapter 7 of the Govenrmental Regulation No. 22 of 2021: …
Indonesia, Summary of Chapter 3 of the Govenrmental Regulation No. 22 of 2021 : Protection and Management of Water Quality (Articles 107 – 162)
Indonesia
1. Obtaining Technical Approval Technical Approval on compliance with wastewater quality standards is necessary for business entities who will discharge their wastewater into the environment (to surface water, land, etc). …
Overview of Environmental Approval Mechanism under the Govenrmental Regulation No. 22 of 2021
Indonesia
The most significant change made by the enactment of the Law No. 11 of 2020 is the simplification of the process to give permits to business entities. The Law has …
Indonesia, Organizations with Governing Environmental Regulations
Indonesia
Ministry of Environment and Forest Ministry of Industry Ministry of Trade Ministry of Energy and Mineral Resources Ministry of Manpower Ministry of Environment and Forest The Ministry of Environment and …
Indonesia
The Ministry of Finance of Indonesia is currently considering amending Law No. 6 of 1983 on the General Provisions and Taxation Procedures (RUU KRP) and introducing a carbon tax in …
Indonesia
On June 28, 2021, the Indonesian Ministry of Environment and Forestry (MOEF) announced the implementation status of the “Regulations of the Minister of Environment and Forestry No. 75 of 2019 …
Indonesia
On April 1, 2021, the “Regulation of the Minister of Trade No. 25 of 2021 on determining products required to use or display Indonesian language labels” was enacted in Indonesia. …
Indonesia, Occupational Safety and Health
Indonesia
In Indonesia, the number of occupational accidents remains a high level. According to data released by the Social Security Provider (BPJS Ketenagakerjaan), a total of 105,182 occupational accidents had occurred …
Indonesia, Waste management
Indonesia
In general, emerging countries face a problem of increased waste, due to the accelerated material consumption led by economic growth. Indonesia is no exception. In addition to increased municipal waste, …
Indonesia, Soil pollution control
Indonesia
In Indonesia, industrial development has resulted in wide-ranging types of waste from factories and similar facilities, causing environmental pollution and health damage to residents. In particular, hazardous and toxic wastes …
Indonesia, Air Quality Control
Indonesia
The greatest concern for air quality control in Indonesia is the exhaust gas emissions from automobiles and motorcycles. In particular, urban areas including the capital Jakarta face increasingly serious air …
Indonesia, Water Quality Control
Indonesia
Water pollution has become a major problem in Indonesia because wastewater is generally discharged into rivers and lakes directly in the country. This situation is cause by undeveloped sewer systems …
Indonesia, Chemicals Control
Indonesia
Currently Indonesia regulates chemical substances based on their hazards, rather than their risks. The country designates hazardous and toxic substances to be regulated as “B3,” which is an abbreviation in …
Indonesia
Indonesia enacted the “Regulation of the Minister of the Environment and Forestry of the Republic of Indonesia No. 6 of 2021 on the Procedures and Requirements for the Management of …
Indonesia
On February 2, 2021, Indonesia enacted the “Governmental Regulation No. 39 of 2021 on Halal Product Assurance Mechanism” (hereinafter referred to as the Regulation), which came into effect immediately. With …
Noise, vibration, and offensive odor control in Indonesia
Indonesia
In Indonesia, rules governing noise, vibration, and offensive odor are established under the Government Regulation No. 41/1999 on Air Pollution Control. Currently, there are three Decrees on stationary emission sources …
Energy Conservation in Indonesia
Indonesia
Energy consumption within Indonesia had continued to increase until 2012 but then started to decline with the deceased energy consumption in Industry and Transportation sectors (See the below Figure). On …
Indonesia, EHS laws & regulations framework
Indonesia
The Republic of Indonesia is a country in the south part of the Southeast Asia comprising over 17,000 islands and stretching over 5,000 km from the East to West. With …
Indonesia
The Regulation of the Minister of Environment and Forestry No. 29 of 2020 on the management of Polychlorinated Biphenyls (hereinafter referred to as the regulation) was enacted in Indonesia on …
Indonesia
On December 23, 2020, the “Regulation of the Ministry of Commerce No. 100 of 2020 on the provisions for the import of used lithium batteries as raw materials for the …
Indonesia
On November 2, 2020, the “Law No. 11 of 2020 on Job Creation” was promulgated in Indonesia and came into effect on the same day. This law is a massive …
Indonesia
The Regulation of the Minister of Environment and Forestry No. 18 of 2020 on the utilization of hazardous waste was enacted in Indonesia on August 28, 2020. It came into …
Indonesia
The Regulation of the Minister of Energy and Mineral Resources No. 13 of 2020 on Battery-based Electric Vehicles Charging Infrastructure (the Regulation) was enacted in Indonesia on August 7, 2020. …
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