Causal Sequence on Environmental License

After the quite long durable grace period, Environmental License (“EL”) has come to light.  Despite of its definition can be found in UU No 32/2009 as “license granted to each person who undertakes business and/or activities which the environmental impact analysis (Amdal) or Environmental Monitoring Efforts Report (UPL) and Environmental Management Efforts Report (UKL) is mandatory in order to protection and environmental management as a prerequisite to obtaining a business license, its implementation should be hold on the government regulation.  Under Government Regulation No. 27 Year 2012 (“PP No 27/2012”), the enigmatic term EL in The Law No.32 Year 2009 Concerning Environmental Protection and Management (“UU No 32/2009”), currently, has not been contemplated any longer.  

EL definitely plays the important impact into the validity of business license.  In other words, business license is possible to be revoked while EL was void as well.  In this condition, the nullification of EL will be a domino effect for validity of business licenses.  

Furthermore, Amdal or UKL-UPL is one of the requirements to obtain EL.  Every business and/or activities which has important impact shall hold Amdal.  The categorization of activities Plan and/or activities which shall be accompanied with Amdal has been stipulated in Annexes Minister for the Environmental Affairs Regulation Number 11 Year 2006, e.g. coal and mining land exceeded 200 Hectare shall require Amdal. Moreover, every business and/or activities which is excluded from the mandatory requirement of Amdal shall provide UKL-UPL

To obtain the EL, each stage has to be completed, as follows:

a. preparation of the Amdal and UKL-UPL;

b. Amdal assessment and examination of UKL-UPL; and

c. Environmental Permit application and its issuance.

Application for EL is submitted accompanied with the submission of Amdal (“PP No. 27/1999”) and RKL-RPL assessment.  Meanwhile, under PP No 27/2012, preparation, inspection and assessment for Amdal, UKL and UPL have been covered.  Thus, the latest regulation concerning Amdal has been declared invalid and its arrangement is integrated in PP No 27/2012.

Afterwards, EL holder shall provide deposit in order to assure the recovery environment function.  However, this obligation is an unclear provision under PP No. 27/2012 due to lack of commentaries.  It assumes that guarantee fund is similar to commitment fee (uang kesungguhan) for Mining Business Permit.  Commitment fee is not used for local or central government but retains in Bank’s account.  It will be return after the entire mining activities is ceased.  Unfortunately, until this regulation is stipulated, it still in unveiled.