In Indonesia, Environmental Approval is one of licensing documents that shrimp farm business actors need to be aware of. This document is a permit required for every business that has an impact on the environment. By obtaining Environmental Approval, business actors have fulfilled one of the basic requirements for business licensing or government approval.
Information regarding Environmental Approval was provided by Maurinus Roy Anggun Cahyadi, ST., M.Si. from the Ministry of Environment and Forestry’s (KLHK) Directorate of Environmental Impact Prevention for Businesses and Activities. He participated as the second speaker at the 16th SHRIMPS TALK webinar which was hosted by JALA on June 25, 2024.
Basic Requirements of Business Licensing
Business licensing is still closely related to the Job Creation Law (Omnibus Law). The law is intended to increase Indonesia’s investment competitiveness by streamlining the application process for business licensing. With the “trust, but verify” principle, the government trusts the data submitted by business actors, while continuing to conduct supervision afterwards.
Before obtaining a business licensing, business actors are required to fulfill the following three (3) basic requirements:
- Suitability of Space Utilization Activities (KKPR)
- Environmental Approval (PL)
- Building Approval and Function Worthiness Certificate (PBG and SLF)
Once the three requirements above are met, a business licensing can be issued. If Law No. 32 of 2009 requires business actors to obtain an Environmental Permit, the Job Creation Law integrates its objectives and functions into business licensing.
Issuance of Business Licensing
The business licensing process is based on the level of business risk: low, medium, and high. Risk levels do not describe environmental aspects or environmental documents. The business licensing risk level only determines the type of business licensing that needs to be met.
Meanwhile, every business actor is required to obtain a Business Identification Number (NIB), which is included in the One Single Submission (OSS) system. In the chart below, Maurinus demonstrates that every business activity requires environmental documents. It contains separate regulations regarding environmental documents, namely Environmental Impact Analysis (AMDAL), Environmental Management Effort and Environmental Monitoring Effort (UKL-UPL), and Statement of Capability for Environmental Management and Monitoring (SPPL) which must be met.
The Government Regulation No. 22 of 2021 regulates the Authority to Issue Environmental Approval. Specifically, regulations regarding the obligation of obtaining AMDAL are mentioned in Article 79, while the obligation of obtaining UKL-UPL are in Article 57. The Government Regulation also states that the authority is in accordance with the business licensing process. For example, if the business licensing is issued by the Governor, the business actor has to submit an application to the relevant Governor to request Environmental Approval.
Meanwhile, in the Government Regulation No. 05 of 2021, shrimp farm refers to brackish water crustacean rearing activities. The issuance authority is also based on location and activities that involve the marine area. If the business location lies in one regency/city, the authority is in the Regent/Mayor. If it is located across regencies/cities within one province, the authority is in the Governor. Then, if the location lies across provinces and involves foreign workers, the authority is in the Minister.
The Screening Concept of Farm Business Activity
If the shrimp farming area lies on a coastal border, farmers should inquire with the local Public Works and Public Housing Services about whether the coastal border is included in a protected area. If it is legally determined as a protected area, the farm is required to obtain AMDAL.
The scale of the obligation to fulfill environmental documents can be seen in the points below.
- If the size of the farm is >500 Ha, the farmer must prepare AMDAL.
- If the size of the farm is 10-500 Ha, the farmer needs to prepare UKL-UPL.
- If the size of the farm is ≤10 Ha, the farmer needs to prepare SPPL which will be integrated with NIB. ## Mechanisms of Preparing and Assessing Environmental Documents Compared to other environmental documents, the AMDAL preparation process takes longer since it requires the filling of reference framework form. According to Maurinus’ estimates, it will take approximately 250 days until the SKKL is issued.
Meanwhile, the UKL-UPL application consists of two processes based on the level of risk. For low medium risk, the form and environmental approval are automatically issued by the system. For medium high risk, the process is split into two, through the system and discussion.
Imposition of DELH/DPLH and Changes to Environmental Approval
Business activities that were already running without having AMDAL and UKL-UPL before the enactment of the Government Regulation No. 22 of 2021 will be subject to sanctions. The sanction is to prepare an Environmental Evaluation Document (DELH) or Environmental Management Document (DPLH).
On the other hand, environmental documents owned by business actors before the enactment of the Government Regulation No. 22 of 2021 are still recognized as valid, become prerequisites, and included in business licensing or government approval.
There are certain policies for business actors who have already obtained Environmental Approval before the enactment of the Government Regulation No. 22 of 2021 and plan to modify their activity components. If the business actors plan to add or enhance activity components, such as land area and production equipment, they must change the Environmental Approval they obtained.
Technical Approval
At the end of his explanation, Maurinus explained additional information regarding Technical Approval (Pertek). Technical Approval regulates the processing of liquid domestic waste that will be discharged into water bodies. This approval consists of different types, for example wastewater Technical Approval and emissions Technical Approval. The type of Technical Approval required for shrimp farms is wastewater Technical Approval.
Technical Approval has been integrated into the Environmental Agreement. This integration streamlines the licensing business process, making it more effective and efficient since it cuts the bureaucracy process.
Stay Tuned for the Next SHRIMPS TALK Webinar!
The 16th SHRIMPS TALK also featured Ir. Hardi Pitoyo, a shrimp farming practitioner from Shrimp Club Indonesia. He shared about sustainable cultivation to the participants. Both discussions were met with great enthusiasm by the attendees, as seen from the questions inquired.
The SHRIMPS TALK webinar by JALA provides a space for shrimp industry players to discuss with the invited speakers. Make sure to follow JALA on Instagram at @jalaindonesia to avoid missing any information from us. See you on the next webinar!
