Is it necessary for a factory with an area larger than 10,000 square meters and located in an industrial park to apply for an Environmental Impact Assessment (AMDAL)?
In Indonesia, there is no direct area requirement for whether an environmental impact assessment (AMDAL) is required, but it is determined based on the scale, location and possible environmental impact of the project activity.
Size is one factor to consider, but it will depend on the following:
1. Triggering conditions for environmental impact assessment
1
Area-related regulations
Although Indonesia's environmental assessment system (AMDAL) does not explicitly stipulate that all projects must meet a certain area threshold before an environmental assessment is required, the following types of activities usually require an environmental assessment and involve area requirements:
Agricultural Development
• Projects less than 25 hectares may only need to submit an Environmental Management and Monitoring Plan (UKL-UPL)
Forestry Projects:
• AMDAL is required regardless of the size of the project if it involves the protection of forests or ecologically sensitive areas.
Industrial Parks and Residential Developments:
• AMDAL is required for industrial park development ≥ 10 hectares or residential projects ≥ 25 hectares.
2
Non-area related trigger conditions
In addition to area, Indonesia's environmental impact assessment requirements are also determined by the following conditions:
Project Type
• Projects that have a significant impact on the environment, such as mining, petrochemicals, infrastructure construction, and large-scale energy projects.
Environmental sensitivity:
• If the project is located in a conservation area, wetland, near a river, or other ecologically sensitive area, even if the area is small, an AMDAL may be required.
Contamination Risk:
• High emission and high pollution projects, regardless of the area, are required to undergo AMDAL.
II. Applicable conditions for different types of environmental impact assessments
Indonesian environmental assessment is divided into three categories according to the project scale and environmental impact:
1
AMDAL (Environmental Impact Analysis)
For projects that may have a significant impact on the environment and society, such as:
• Large-scale projects such as reclamation, mining, and heavy industrial development;
• Projects that have a potential impact on ecologically sensitive areas.
2
UKL-UPL (Environmental Management and Monitoring Program)
• Agricultural projects with a cultivated area between 5-25 hectares;
• Small industrial developments, commercial construction projects, etc.
3
SPPL (Environmental Management Statement)
Applicable to micro-enterprises and small-scale projects with little environmental impact:
• Micro-agricultural projects, < 5 hectares;
• Small residential developments or service industry projects not involving sensitive areas。
3. Relationship between area and environmental sensitivity
• Development activities in protected areas, wetlands, forest areas, coastal areas or mountainous areas;
• Projects that may threaten environmental factors such as drinking water sources and habitats of endangered species.
IV. Area requirements for specific industries
The following are the preliminary environmental assessment requirements for common industries:
V. Specific Government Regulations
• Detailed Environmental Impact Assessment of the Project: Even if the project area is lower than the above standards, activities that may cause significant pollution or damage the ecology still require AMDAL;
• Regional Environmental Planning (RTRW): Whether the project complies with the local land use planning;
• Public opinion: If the public or non-governmental organizations raise concerns about the environmental impact of the project, the government may force an EIA.
Hire professional consultants. For projects involving large areas or sensitive areas, it is recommended to hire an experienced environmental consulting company to prepare relevant documents.
Plan ahead to ensure that the project complies with regional planning, and try to avoid developing sensitive areas to reduce the difficulty of approval.
For more details on overseas expansion, please consult PDAEXSEA professional consultants:
