Environmental Compliance

Environmental compliance in Indonesia has evolved from bureaucratic requirement to strategic business imperative, particularly for foreign investors facing ESG scrutiny from global stakeholders.

The AMDAL (Environmental Impact Assessment) process is mandatory for 17 categories of large-scale or high-impact projects—from manufacturing facilities above certain capacity thresholds to infrastructure development in sensitive areas. This is not a desktop study; it requires comprehensive field surveys, laboratory analysis, public consultation, and expert assessment across environmental, social, and health dimensions. Projects cannot commence construction until environmental approval is secured, making AMDAL timeline management critical for investment schedules.

For medium-impact projects, UKL-UPL (Environmental Management and Monitoring) provides a simplified pathway but still demands technical rigor. Your environmental documents must demonstrate not only compliance with Indonesian environmental law but also integration with international standards if your parent company reports under frameworks like GRI, TCFD, or SASB. Increasingly, Indonesian banks require environmental clearance before financing, and international buyers audit supplier environmental compliance.

Beyond permit acquisition: Your environmental approval establishes ongoing obligations—quarterly monitoring reports, annual performance evaluations, third-party audits every two years. The documents you submit become your operational commitments—promised pollution control equipment must be installed, committed water treatment capacity must be maintained, stated waste management procedures must be followed. Non-compliance can result in operational suspensions that cost hundreds of thousands of dollars per day in lost production.

Our environmental team includes certified AMDAL practitioners across multiple disciplines—air quality engineers, water resource specialists, biodiversity experts, and social impact professionals. We've supported clients in aligning Indonesian environmental permits with ISO 14001 certification and parent company ESG reporting requirements, creating seamless compliance across multiple regulatory frameworks.