ENVIRONMENTAL MANAGEMENT SYSTEM (EMS) OBLIGATION APPLICABLE FOR COMPANIES IN INDONESIA

RULES-AND-REGULATIONS-CONCERNING-LEAVE-OF-EMPLOYEES
RULES AND REGULATIONS CONCERNING LEAVE OF EMPLOYEES
August 5, 2017
BECOME-A-SMART-LAWYER
BECOME A SMART LAWYER!
August 10, 2017

To protect the Indonesian environment from pollution and damage, all companies have the obligation to apply Environmental Management System in its business activities. Learn more about what the Environmental Management System is and how to apply it in your company.


To protect the Indonesian environment from pollution and damage, every company must apply the EMS in its business activities. This is in line with Indonesia’s participation in the KTT Rio, which reenacted the 1972 Stockholm Declaration. The 1972 Stockholm Declaration confirmed the need for a common outlook and for common principles to inspire people around the world in the preservation and enhancement of the human environment.

Indonesia’s involvement with KTT Rio is not limited to the issuance of Government Policies, but also active participation by Indonesian Citizens, including Companies in Indonesia, as one of the biggest potential pollution makers. Indonesia took a further action on following up the KTT Rio, by formed Indonesia’s own Agenda 21. Indonesian Agenda 21 contains four major sections to carry out the plans of sustainable development, there are 1) Human Services, 2) Waste Management, 3) Land Resource Management, and 4) Natural Resource Management.

Companies in Indonesia have the obligation to determine and apply corporate policy and programs designed to preserve the environment. This is so that the contamination doesn’t further harm the environment. One of such obligations includes the development and implementation of the EMS in the Company. 

WHAT IS THE ENVIRONMENTAL MANAGEMENT SYSTEM?
EMS is a set of processes and practices that enable an organization to reduce its environmental impacts and increase its operating efficiency. The EMS is purposed to assist the company to achieve their required environmental goals.
Each of the company’s EMS is developed pursuant to the company’s business and goals. In general, the following is the process to develop and maintain an EMS:

  1. Reviewing Company Environmental Goals;
  2. Analyzing Company environmental impacts and legal requirements;
  3. Setting Company environmental objectives and targets to reduce legal requirements;
  4. Establishing Company programs to meet these objectives and targets;
  5. Monitoring and measuring Company progress in achieving the objectives;
  6. Ensuring Company employees’ environmental awareness and competence;
  7. Reviewing the progress of the Company EMS and making the necessary and required improvements.

It must be noted that the obligation of each Company to apply EMS is pursuant to each of their business types. Basically, Companies with certain business activities that have a significant impact on the environment have more obligations than Companies which business activities do not have a significant impact on the environment.

COMPLIANCE TO THE ENVIRONMENTAL MANAGEMENT SYSTEM
The following are the issues to comply with, pursuant to the Indonesian laws and regulations below which related to the Company EMS issued by the Government:

  1. ENVIRONMENTAL LICENSE
  2. Pursuant to Government Regulation No.27 of 2012 on Environmental Permits (“GR 27/2012”), a business enterprise must have an Environmental License. The eligibility for Environmental License depends on whether the Company is required to obtain the following environmental documents:

    1. Environmental Impact Assessment, widely known as “AMDAL” or Analisis Mengenai Dampak Lingkungan Hidup. AMDAL is mandatory to obtain for all enterprises with activities that result in significant impact to the environment; and
    2. Environmental Management and Monitoring Effort, widely known as “UKL-UPL” or Upaya Pengelolaan Lingkungan Hidup dan Upaya Pemantauan Lingkungan Hidup or “UKL-UPL”. UKL-UPL is mandatory to certain enterprises that are not eligible for AMDAL.

    For Companies which are not eligible for AMDAL nor UKL-UPL, they do not have to comply with the Environmental License. However, they still need to submit a Statement Letter of Ability in Environmental Management and Monitoring, widely known as “SPPL” or Surat Pernyataan Kesanggupan Pengelolaan dan Pemantauan Lingkungan Hidup. This is the easiest requirement to fulfill in terms of environmental compliance and applies to companies that have no significant impact on the environment.

  3. SPATIAL PLANNING
  4. Pursuant to Article 61 of Law No. 26 of 2007 on Spatial Planning, spatial utilization must comply with the following provisions:

    1. Comply with the prevailing spatial planning plan;
    2. Utilization of space must be done pursuant to Spatial  Utilization License (Izin Pemanfaatan Ruang) issued by relevant government authority;
    3. Comply with the provisions determined in the Spatial Utilization License requirements;
    4. Provide access to sectors/regions determined by the prevailing regulations as public sectors/regions.
  5. ELECTRICAL INSTALLATION
  6. Pursuant to Minister of Energy and Mineral Resources Regulation No. 36 of 2014, the installer of electrical installations must be organizations or institutions which hold operational acceptance certificate and be able to show documents of Indonesian National Standard (SNI). SNI documents are used as reference standards in the installation of low-voltage electric power for households, office buildings, public buildings, and other buildings. The current standard for electrical installation in Indonesia is PUIL 2011.

  7. WASTE MANAGEMENT
  8. Pursuant to Article 12 of Law No. 18 of 2008 concerning Waste Management, all companies are obliged to reduce and handle waste based on environmentally sound management. Certain waste which can potentially cause pollution and/or damage to the environment is also subject to AMDAL.

  9. HAZARDOUS AND TOXIC WASTE
  10. Pursuant to Government Regulation No. 101 of 2014 concerning Hazardous and Toxic Waste, the obligation of Hazardous and Toxic Waste Management is applicable to enterprises who generate Hazardous and Toxic Waste. Hazardous and Toxic Waste characteristics include:

    1. Explosive;
    2. Flammable;
    3. Reactive;
    4. Infectious;
    5. Corrosive; and/or
    6. Toxic.
  11. NUISANCE CONTROL
  12. Pursuant to Article 22 Government Regulation No. 41 of 1999 concerning Air Pollution, all persons and/or enterprises conducting business activities which emit pollution and/or nuisance must comply with the terms and conditions stated in its business permit.

    Pursuant to the Hinderordonantie(“HO”), all enterprises in  Indonesia are required to obtain Nuisance Permit, pursuant to the terms and conditions stated within each regional regulations in which the enterprise is located.

  13. ENVIRONMENTAL AUDIT
  14. Pursuant to Minister of Environment Regulation No. 3 of 2013 concerning Environmental Audit, there are  2 (two) types of Environmental Audit:

    1. Voluntary Environmental Audit; and
    2. Mandatory Environmental Audit.

    Mandatory Environmental Audit is obligated for the companies as follows:

    1. Companies who conduct certain business activities with high risk to the environment; and/or
    2. Companies who displays non-compliance to the prevailing laws and regulations concerning environmental protection and management.

CONCLUSION
EMS is closely related to a Company’s goals. Because of that, the principles of EMS carry out structures and programs that may optimize the Company’s performance, while also complying with the prevailing laws and obligations.

How can SMART Legal Consulting help you?
SMART Legal Consulting is a corporate legal services provider with experience and capability to assist Clients in legal aspects of their corporate business and activities, including applying the Environmental Management System. We help our Clients to maintain that the Client’s corporate activities are in compliance with the prevailing laws and regulations. Our goal is to assist Client in achieving their business goals while also ensuring their legal compliance with the laws and regulations.

Contact SMART for more details about our services, or schedule a meeting with us at:
E: info@smartcolaw.com
H: +62821-1234-1235
O: +6221-8067492

Comments are closed.