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COUNTRY PROFILE
Country Profile: Indonesia
every district; the High Courts of Appeal, for every
Editor’s Note: This is the 16th in a series of articles summariz-
ing various countries’ government and SH&E legislative process-
province; and the Supreme Court as the highest level of
es. It is intended to serve as a useful planning tool for SH&E
the court hierarchy in Jakarta and for the country as a
professionals preparing to conduct business in profiled country.
whole. In 2003, a constitutional court was established
Previous profiles have included Argentina, Australia, Brazil, Chile,
with power to review, among other things, the constitu-
China, Germany, India, Ireland, Italy, Japan, Kuwait, Mexico,
tionality of laws.
Singapore, Spain and the U.K. All country profiles are provided
courtesy of AECOM and are available on ASSE’s International MPR is the only authority that may change the 1945
Practice Specialty (IPS) website. Direct requests for additional
constitution. MPR amended the 1945 constitution in
country information to Halley Moriyama at halley.moriyama
@aecom.com; +1-978-589-3233 or to Jack Fearing, CPEA, at October 1999, August 2000, November 2001 and August
+1-703-462-7294; jack.fearing@dyn-intl.com. 2002.
Since the first amendment of the 1945 constitution,
O
n April 9, 2009 and July 8, 2009, Indonesia the government has not had monopoly power on the ini-
successfully organized the second direct leg- tiation of bills for discussion and approval in the parlia-
islative and presidential elections. Dr. H. ment. Both parliament and government can initiate bills.
Susilo Bambang Yudhoyono was reelected as After the bill is agreed to by the government and parlia-
president for a second term of office until ment, it is submitted to the president for legalization for
2014 with Dr. Boediono as his vice president. promulgation. According to Law No. 10 of 2004
Furthermore, 34 new ministers have Regarding Establishment of Laws and Regulations, the
The Pancasila, or been appointed and named as the types and hierarchy of legislation are as follows:
Indonesia Unite Cabinet II to assist
five principles pro- the president in establishing a peace- •1945 constitution;
•law/statute/act/government regulation as a replace-
vides a framework ful, prosperous, secure and demo-
cratic nation with good corporate
ment of law;
•government regulation (to implement the law);
for the Indonesian governance as its main principal. The •presidential regulation;
Constitution and Pancasila, or five principles (belief in
the one and only God, just and civi-
•regional regulation (Peraturan Daerah or Perda).
Although it is not stipulated in the hierarchy of legis-
directs political life. lized humanity, unity of Indonesia, lation, in governance practice, ministers or the heads of
democracy guided by consensus aris- executive departments can also issue regulations or
ing from deliberations amongst representatives and guidelines to implement laws, government regulations
social justice for all people of Indonesia), provides a and presidential decrees. These are:
framework for the Indonesian Constitution and directs •ministerial decrees;
political life. Indonesia is a republic based on the 1945 •ministerial instructions;
Constitution, as amended, or the Constitution of the •circular letters (which do not have the weight of a
Proclamation. regulation).
The central government is located in Jakarta on the In addition to Perda, which must be approved by both
island of Java. The central government of the Republic local parliament and local government, local technical
of Indonesia cooperates with other government institu- regulations may also be proposed by the provincial gov-
tions to arrange for state affairs, including the People’s ernor or regent (Bupati)/mayor (Walikota) to implement
Consultative Assembly (Majelis Permusyawaratan Perda as follows:
Rakyat or MPR) and the House of Representatives •governor/regent/mayor decisions;
(Dewan Perwakilan Rakyat or DPR). The MPR meets at •governor/regent/mayor instructions; and
least once every five years to inaugurate the president •circular letters (which do not have the weight of a
and vice president. The president is advised by a regulation).
Presidential Advisory Council (Dewan Pertimbangan These many sources of legislation result in regula-
Presiden) and chooses the ministers who will assist tions, licenses, permits, fees, inspectors and other
him/her. bureaucratic requirements. Jurisdictions may overlap,
MPR comprises DPR and the Regional Represen- resulting in duplicative efforts.
tative Council (Dewan Perwakilan Daerah or DPD); the Indonesia is subdivided into 33 provinces, including
president and DPR form the country’s legislative power. three special autonomy regions (Aceh, Papua and Papua
Independent from the executive and legislative branches, Barat), one special capital city (DKI Jakarta) and one
the Supreme Court serves as the country’s judiciary special region (Daerah Istimewa, Jogyakarta), each of
power. Indonesia’s judiciary is comprised of the District which is led by a governor in cooperation with a regional
Courts (also known as the Courts of First Instance) for house of representatives. The sidebar, p. 7, provides a list
4
World Focus www.asse.orgof Indonesian provinces, special autonomy regions, the
special region and the special capital region. Each of
these areas is sub-divided into regencies, headed by a
regent in cooperation with a local house of representa-
tives. Currently, a total of 397 regencies (Kabupaten) and
98 (Kotamadya) municipalities exist throughout
Indonesia. Each municipality (Kotamadya) is comprised
of several local administrative units/districts (Kecamatan)
that coordinate the approximately 76,546 subdistricts
(Kelurahan) and villages (Desa).
SH&E AUTHORITIES
Presidential Regulation No. 7 of 2005 Regarding the
National Medium Range Development Plan of 2004-
2009, dated Jan. 19, 2005, identifies the issues in the
environmental sector that are the basis for establishing
the national environment development plan. Current adopted by sectoral (technical) agencies to implement
environmental issues in Indonesia include a decrease in pollution control. Sectoral departments, such as the
Indonesian forests, damage to coastal areas and the sea Ministry of Industry and the Ministry of Manpower and
ecosystem, increases in air and water pollution and a Transmigration, are responsible for environmental man-
lack of enforcement of environmental laws. agement within their technical jurisdictions, while local
Given the environmental issues in Indonesia, the governments are mandated by government regulations to
objective of the national environmental development manage environmental concerns within their regional
plan is to improve natural resources and environmental jurisdiction as part of an integrated national environmen-
management systems to establish a reasonable equilibri- tal management program.
um between natural resource utilization as economic The national environmental impact management
growth capital and environmental protection as a life agency, Badan Pengendalian Dampak Lingkungan
support system. All activities conducted in Indonesia (BAPEDAL), established in 1990 by Presidential Decree
should confirm to the three sustainable development No. 23 of 1990 Regarding BAPEDAL, was dissolved at
principles, namely: (i) economic profitability; (ii) social the Central Government level in 2002. BAPEDAL’s
acceptance and (iii) environmental friendliness. The tasks and functions were merged into MOE. BAPEDAL
environmental development plan seeks to prioritize the offices continue to exist at the provincial, regency and
sustainable principles in all development sectors, municipality levels. Based on Presidential Regulation
increase environmental management coordination at No. 9 of 2005, MOE is currently responsible and
national and regional levels, increase environmental law empowered to formulate national policy, coordinate the
development and consistent enforcement and increase implementation of this policy and control environmental
environmental impact management efforts related to impacts.
development activities. Other SH&E institutions include the following:
Based on Presidential Regulation No. 9 of 2005 •National Development Planning Board (Badan
Regarding Position, Task, Function, Composition and Perencanaan Pembangunan Nasional): assessment of the
Work of the State Minister of the Republic of Indonesia development plans of central and provincial government
(as amended by Presidential Regulation No. 62 of 2005 agencies.
Regarding the Amendment to Presidential Regulation •Ministry of Industry (Departeman Perindustrian):
No. 9 of 2005; Presidential Regulation No. 90 of 2006 nuisance control, pollution from industries, among other
Regarding the Second Amendment to Presidential issues.
Regulation No. 9 of 2005; Presidential Regulation No. •Ministry of Health (Departeman Kesehatan): drink-
94 of 2006 Regarding the Third Amendment to ing water quality, sanitation and pesticide use.
Presidential Regulation No. 9 of 2005; and Presidential •Ministry of Energy and Mineral Resources
Regulation No. 20 of 2008 Regarding the Fourth (Departemen Energi dan Sumber Daya Mineral): issuing
Amendment to Presidential Regulation No. 9 of 2005), permits, monitoring mining activities and enforcing rele-
the minister for the environment (MOE) acts as a coordi- vant regulations.
nating and policy formulating body and is responsible •Ministry of Agriculture (Departemen Pertanian):
for preparing drafts of environmental legislation to be renewable resources, fisheries and the use of fertilizers.
adopted by the executive branch. •Ministry of Law and Human Rights (Departemen
The MOE also issues the guidelines to determine Hukum dan Hak Asasi Manusia): environmental legisla-
ambient air quality and effluent quality standards for tion and codification.
industry, as well as other technical guidance, which are •Ministry of Home Affairs (Departemen Dalam
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World Focus www.asse.orgNegeri): local government supervision, establishment of Law revoked Law No. 23 of 1997 Regarding Environ-
provincial and local environmental agencies. mental Management. Law No. 23 of 1997 was perceived
•Ministry of Manpower and Transmigration to be ineffective in reducing environmental pollution and
(Departemen Tenaga Kerja dan Transmigrasi): working damage, which have been increasing. The New
environment, occupational health. Environmental Law sets out provisions for obtaining
•Ministry of Forestry (Departemen Kehutanan): environmental permits for businesses and/or activities
forestry. that are obligated to implement environmental impact
•Ministry of Maritime and Fisheries (Departemen assessments (Analisis Mengenai Dampak Lingkungan or
Kelautan dan Perikanan): coral reefs safety. AMDAL) and/or environmental management efforts
•Nuclear Energy Supervisory Agency (Badan (Upaya Pengelolaan Lingkungan or UPL) and environ-
Pengawas Tenaga Nuklir): use and supervision of mental monitoring efforts (Upaya Pemantauan
nuclear energy. Lingkungan or UKL).
In addition, interministerial and interagency teams have Such environmental permits are issued by MOE, gov-
been formed to address diverse aspects of the environment. ernor or regent/mayor pursuant to each of their respec-
A private entity, State Enterprise for Oil and Gas tive jurisdictions. In addition, an environmental permit is
Mining or PERTAMINA, was previously entrusted with a prerequisite to obtain a business license for the busi-
the exploration and exploitation of oil and natural gas. ness and/or activity; therefore, if an environmental per-
With the promulgation of Government Regulation No. mit is revoked, then the business license is also revoked.
31 of 2003 regarding the change of status of PERTAMI- Under the New Environmental Law, AMDAL is required
NA to become a state-owned limited-liability company, for a business and/or activity that has a significant
PERTAMINA no longer has authority to issue regula- impact on the environment.
tions. The Regulatory Body for Downstream Oil and Gas Pursuant to Law No. 32 of 2004 Regarding Regional
(Badan Pengatur Hilir Migas or BPH Migas) and Imple- Autonomy as last amended by Law No. 12 of 2008
mentation Body for Upstream Oil and Gas (Badan Regarding the Second Amendment to Law No. 32 of
Pelaksana Hulu Migas or BP Migas) have been estab- 2004, each province functions as a responsible and real
lished to provide and monitor upstream and downstream autonomous region and administrative territory. There-
activity in the field of oil and gas. BPH Migas was estab- fore, the provincial and local environmental impact
lished on Dec. 30, 2002, and BP Migas was established management agencies (Badan Pengendalian Dampak
on Jul. 16, 2002. Lingkungan Daerah or BAPEDALDA) are expected to
Law No. 22 of 2001 Regarding Oil and Gas also take up more of the enforcement tasks in their specific
includes some provisions regarding environmental, areas, such as adherence to the monitoring requirements
health and safety matters by stipulating: of industrial operating licenses, and responding to public
•Policies on oil and gas operations shall be based on, reports of environmental damage.
among others, environmental aspects and preservation of
the living environment, the national potential and devel- ENFORCEMENT OF SH&E REGULATIONS
opment policies. In practice, the multiple sources of environmental leg-
•Companies engaged in oil and gas business operations islation have frequently resulted in duplicative and con-
(legal entities and permanent establishments) shall ensure flicting requirements, which make enforcement difficult.
occupational safety and health, management of the living The provincial and local BAPEDAL agencies were
environment and compliance with the prevailing law and expected to take the lead on enforcement within their
regulations in oil and gas business operations; individual jurisdictions. However, the reality has been
•Management of the living environment shall be in that the regional authorities lack the clear mandate,
the form of an obligation to prevent and overcome pollu- financial support and skills to sufficiently carry out this
tion and restore damages to the living environment, function.
including the obligation to carry out post-exploration and The formation of BAPEDAL in 1990 as part of the
production operations by way of rehabilitation of sites. central government improved the enforcement of envi-
•The responsibility for controlling work and executing ronmental provisions in several ways. Unlike the sectoral
oil and gas business operations (including the manage- departments (e.g., the Ministry of Industry) which have
ment of the living environment) in compliance with the environmental issues as only one of many concerns,
prevailing law and regulations shall be the authority of BAPEDAL was charged specifically with managing
the department whose duties and authorities include oil environmental impact analysis and environmental impact
and gas business operations and with other relevant management and with providing technical assistance.
departments. Also, unlike the State Ministry of the Environmental
The major development in the environment sector Affairs, which was meant to function as a policy-forming
is the passing of Law No. 32 of 2009 Regarding the and coordinating body and the provincial governments,
Environmental Protection and Management, Oct. 3, 2009 who were meant to function only as coordinating bodies,
(New Environmental Law). The New Environmental BAPEDAL was specifically created to implement and
6
World Focus www.asse.orgfine of $1,620,000 if it causes death or severe
injury). Negligent actions may be punishable
INDONESIAN ADMINISTRATIVE DIVISIONS by a maximum of 3 years imprisonment
and/or a fine to a maximum of $324,000 or a
Provinces Sulawesi Barat
maximum imprisonment of 9 years and a
Bali Sulawesi Selatan
maximum fine of $972,000 if the negligent
Bengkulu Sulawesi Tengah
action causes death or severe injury.
Banten Sulawesi Tenggara
Intentionally acting against the prevailing
Gorontalo Sulawesi Utara
laws (e.g., by dumping hazardous or toxic sub-
Jambi Sumatera Barat
stances, energy and/or other components into
Jawa Barat Sumatera Selatan
Sumatera Utara the ground, air or surface water, importing,
Jawa Tengah exporting, trading, containing, storing or doing
Jawa Timur any related dangerous activities while under-
Kalimantan Barat Special Autonomy
Regions standing that those acts may cause environ-
Kalimantan Selatan mental pollution and/or damage or endanger
Kalimantan Tengah Nanggroe Aceh Darussalam
Papua human health) may be punishable by up to a
Kalimantan Timur maximum of 15 years imprisonment and a
Kepulauan Bangka Belitung Papua Barat maximum fine of $1,620,000. Furthermore, the
Kepulauan Riau law introduces new criminal and fine penalties
Lampung Special Region
DI Yogyakarta related to genetically engineered products.
Maluku Under Article 101 of the New Environmental
Maluku Utara Law, any person releasing and/or circulating
Nusa Tenggara Barat Special Capital City
DKI Jakarta genetically engineered products to environ-
Nusa Tenggara Timur mental media in contravention of regulations
Riau or an environmental license (as referred to in
Article 69 of the New Environmental Law) is
develop measures to prevent and mitigate environmental subject to a maximum 3 years imprisonment
pollution and destruction. However, with the abolishment and a fine of up to $324,000.
of BAPEDAL in January 2002, environmental activists Article 5 of Law No. 1 of 1970 Regarding Work Safety
question the effectiveness of the Minister of Environ- delegates the control of legislation related to work safety to
ment in carrying out the enforcement tasks, although the Department of Manpower and Transmigration. The
almost all BAPEDAL mandates have been integrated Minister of Manpower and Transmigration appoints safety
into MOE. inspectors as technical officers of the Department of
The New Environmental Law names the judiciary as Manpower and Transmigration. In addition, the Minister of
the guardian and supervisor for the proper execution of Manpower and Transmigration appoints qualified people
the law. The New Environmental Law also provides the from outside the Department of Manpower and Trans-
basis for civil, criminal and strict environmental liability migration to supervise health and safety compliance. These
under Indonesian law. Articles 53 and 54 of the New appointees are called safety experts. Despite the existence
Environmental Law set forth the obligations for every of these enforcement officers and Indonesia’s fairly well-
person polluting and/or damaging the environment to developed body of safety and health legislation, it appears
conduct remediation and to recover the environmental that the enforcement of occupational safety and health is
functions. Furthermore, Article 87 of the New Environ- not a governmental priority, at present.
mental Law stipulates that each person who damages or
pollutes the living environment is liable for payment ENFORCEMENT PRACTICES
of compensation or restitution to victims. The New The New Environmental Law specifically allows an
Environmental Law also provides administrative sanc- individual or a group of legal standing to sue for envi-
tions against an entity to prevent and stop any violation ronmental damages. In 1989, the Indonesian Forum for
and to take action to repair the damage. the Environment (WALHI), as a representative of the
Strict liability in activities using hazardous and toxic public interest, was granted standing to sue five national
materials with significant impact on the environment is government agencies and the pulp and paper industry in
established by Article 88, with strict liability resting the Jakarta District Court for environmental pollution,
upon those who cause the damage and/or pollution. damages and noncompliance with environmental laws.
Criminal liabilities are addressed in Articles 98 to 115. Although the court rejected the substantive issues of the
Intentional acts of damage to or pollution of the environ- suit, the case has set a strong precedent for similar legal
ment may be punishable by a maximum of 10 years suits against polluters and has raised public awareness of
imprisonment and/or a maximum fine of $1,080,000 (or legal protections against environmental pollution.
a maximum of 15 years imprisonment and a maximum Another case occurred in 2001, when the Counsel of
7
World Focus www.asse.orgJudges at the South Jakarta District Court ruled against license requirements. Similarly, the inspection officers of
PT Freeport Indonesia (PTFI), based on WALHI’s law- Department of Industry are also assigned to tasks other
suit, and decided in its verdict that PTFI was guilty of than environmental compliance.
disseminating misleading information regarding an acci- Because Indonesia lacks a defined enforcement sys-
dent involving toxic overflows at their Wanagon Lake tem, police are usually involved in enforcement actions.
mining location in Irian Jaya. This incident allegedly Thus far, cases of environmental enforcement actions are
claimed four lives on May 4, 2000. rare, however, attention to environmental quality and
In 2007, a lawsuit was filed by WALHI, which was enforcement has increased. The New Environmental
represented by the Advocacy Team for Humanitarian Law provides the legal basis for the establishment of
Victims of the Sidoarjo Mudflow (TAKLUSI), against dedicated environmental inspectors at the national,
PT Lapindo Brantas Incorporated, Kalila Energy provincial and local levels of government.
Limited, Pan Asia Enterprise, PT Medco Energi, Tbk, In the area of occupational health and safety, enforce-
Santos Australia Ltd, and Government of the Republic of ment is somewhat greater, as a result of the institutional-
Indonesia (the president, Minister for Energy and ization of health and safety inspectors. The law has
Mineral, Executive Agency for assigned special inspectors or civil enforcement officers
Specific laws and Upstream Oil and Gas Activity,
Minister of Environment), the
called Labor Inspection Officers (Pegawai Pengawas
Ketenagakerjaan) of the Directorate of Industrial Relation
regulations related Governor of East Java Province and Management and Manpower Supervision (Pembinaan
the Regent of Sidoarjo Regency. The Hubungan Industrial dan Pengawasan Ketenagakerjaan) of
to contaminated suit, filed in the South Jakarta District the Department of Manpower and Transmigration in
land do not exist Court, alleged liability for environ- Jakarta. At the provincial level, the officer from the provin-
mental destruction, including damag- cial office of the Department of Manpower and Trans-
in Indonesia. ing the ecological function in the migration performs the inspection, and at the district level,
region affected by the mudflow since district officers perform inspections.
the mudflow was of such magnitude that it altered the For all of Indonesia, approximately 2,100 inspectors at
landscape and also allegedly damaged river flow and the district and provincial levels oversee 200,000 regulated
local ecosystem functions. companies. According to the Department of Manpower
On March 28, 2007, WALHI filed another lawsuit and Transmigration, the number of inspectors is insuffi-
against PT Newmont Minahasa and the Government of cient to effectively oversee the regulated community. If an
the Republic of Indonesia (the Minister for Mineral inspector notes a violation, the district office will issue a
Resources of the Republic of Indonesia) for damaging warning letter; if the violation is not corrected, the case
the environment at Buyat Bay. WALHI filed a legal- may be prosecuted, although, to date, prosecution has
standing suit following the report of the Buyat Pante vil- rarely occurred.
lage residents about environmental damage and
community unrest in August 2004. INFORMATION ACCESS
PT Newmont Minahasa was operating without a per- A variety of provisions in Indonesian environmental
mit from MOE for waste disposal into the sea and for law allow for public access to information. Article 62 of
processing of waste (Bahan Beracun Berbahaya). The the New Environmental Law stipulates that the national
disposal of tailings caused damage to the marine ecosys- and regional governments must develop an environmen-
tem, including turbidity in the eutrophic zone, a decline tal information system to support the implementation
in the quantity and quality of coral reefs in Buyat Bay, and development of policies on environmental protection
bioaccumulation of sediments in marine biota in the and management. This environmental information sys-
eutrophic zone, a decline in phytoplankton and zoo- tem must be formulated in an integrated and coordinated
plankton levels due to a high arsenic content in sedi- manner and be published for the public.
ments in Buyat Bay and more than 100 fish deaths Law No. 26 of 2007 Regarding Spatial Planning
recorded either around the tailings disposal pipe in Buyat states that proper spatial planning is based on openness,
Bay or washed ashore. The Buyat Bay Case also alleges unity, justice and legal protection. Provisions in this law
a decline in the health of Buyat Bay residents and infec- recognize the public’s right to information about and par-
tion by a range of diseases due to consumption of drink- ticipation in spatial planning, as well as the government’s
ing water and fish contaminated by heavy metals responsibility to disseminate information regarding
(arsenic and manganese). plans. Government Regulation No. 27 of 1999 Re-
Although Indonesia has environmental inspectors, garding Environmental Impact Analysis EIA and Head
they are not highly trained and specialized. For example, of BAPEDAL Decree No. 8 of 2000 Concerning Public
although MOE (since taking over BAPEDAL tasks) has Access to Information and Participation in the EIA
regulatory involvement in controlling hazardous waste Process have provisions for access to information and
management, the agency does not have enough inspec- community involvement.
tors with sufficient training to control compliance with Government Regulation No. 27 of 1999 established
8
World Focus www.asse.orgthat public involvement entails an obligation of govern- damaging the environment to conduct mitigation and
ment agencies to inform the public of planned activities, restoration. Article 87 of this Law provides that every
public access to EIA documents and possible involve- party in charge of a business and/or activity committing
ment of the public and interest groups in the process of a violation in the form of environmental pollution and/or
drafting and evaluating EIAs and in managing and moni- destruction which inflicts a loss to another party or the
toring environmental factors. These rights are even more environment is obligated to pay compensation and/or to
strongly established in an older law, the Nuisance Ordi- take certain actions. Further, Article 88 requires that any
nance of 1926. The Nuisance Ordinance of 1926 obli- person whose action, business and/or activity includes
gates the municipal or district authorities to inform the the use of hazardous and toxic materials, manages haz-
owners, people living or otherwise using premises in ardous and toxic (B3) waste and/or
neighborhoods surrounding any proposed development. poses a serious threat to the environ- For all of
In addition, pursuant to Article 5 of the Nuisance ment will be held strictly liable for
Ordinance of 1926, the responsible authority must make the resulting loss without any Indonesia, approxi-
all application letters and enclosures at their office avail- requirement to prove fault. mately 2,100
able to any person who is interested.
Although some indirect references are found in the CLEANUP STANDARDS inspectors at the
New Environmental Law regarding access to facility To date, no laws or regulations
records, no specific regulations exist regarding public specifically set forth cleanup stan- district and provin-
access to these facility records. In practice, it would be dards. However, Article 54(2) of the cial levels oversee
difficult for the public to obtain free access to a facility’s New Environmental Law sets forth
records. The enactment of the Transparencies of Public the phases to restore environmental 200,000 regulated
functions by way of 1) discontinua-
Information Law is expected to help in accessing envi-
ronmental information. tion of the source of pollution and
companies.
cleaning of pollutants, 2) remedia-
CONTAMINATED LAND tion, 3) rehabilitation, 4) restoration and 5) other meas-
Applicable Regulations ures in accordance with scientific and technological
Specific laws and regulations related to contaminated developments. The implementing regulations of the New
land do not exist in Indonesia. Related legislation Environmental Law will provide further provisions
includes Government Regulation No. 82 of 2001 regarding cleanup standards.
Regarding Water Quality Management and Water
Pollution Control and Government Regulation No. 18 of PROPERTY TRANSFER LEGISLATION
1999, as amended by Government Regulation No. 85 of For persons or companies engaged in the purchase or
1999 Regarding Hazardous and Toxic Material Waste sale of a business or property, no statutory or policy
Management. Government Regulation No. 82 of 2001 requirement exists to undertake pretransaction environ-
includes the obligation of the central government and the mental investigations. Such investigations are not common
regional government (provincial, regency and/or city) but by contract are often required in transactions involving
pursuant to its respective jurisdictions, to eradicate water foreign parties. There is also no legislation or policy that
contamination and improve the recovery of water quality. requires sellers of businesses or property to provide the
Administrative sanctions may be imposed by the potential buyer with any document or statement concern-
MOE/regent/mayor on the manager of the business ing the environmental condition of the property.
and/or activity causing the pollution or who is in viola- By law, sellers are obliged to guarantee that no hidden
tion of the requirements as set forth under Government defects exist on the property and all risks are passed on
Regulation No. 82 of 2001. Government Regulation No. to the buyer upon the transfer of title to the property. As
18 of 1999 includes provisions that obligate the produc- such, it is not unusual for the parties involved in a prop-
er, collector, user, transporter, storer and processor of erty or business transaction to seek, by way of contract
waste to remediate the contaminated area or environmen- negotiations, warranties and indemnities and to receive
tal damage caused as a result of their activity (Article environmental disclosures in respect of the same.
60). If the responsible party is unable to perform the REPORTING OBLIGATIONS
remedial activity, or if what they have done is improper, Under Article 70 of the New Environmental Law,
BAPEDALDA or MOE may perform the remediation or public participation related to environmental protection
oversee a third-party contractor at the cost of the respon- and management may take the form of social monitor-
sible party (the violator). ing, opinions/recommendations/ complaints and con-
veyance of information and/or reporting.
LIABILITY FOR
PREEXISTING CONTAMINATION ACCIDENTAL SPILLS & RELEASES
Articles 53 and 54 of the New Environmental Law set Under Government Regulation No. 18 of 1999, as
forth the obligations for any person polluting and/or amended by Government Regulation No. 85 of 1999 on
9
World Focus www.asse.orgthe Management of Waste of Hazardous and Toxic Jakarta 13410
Materials, Government Regulation No. 41 of 1999 on [62- 21] 858 0102, 859 04926
the Control of Air Pollution and Government Regulation Fax: [62- 21] 851 7184, 859 04926
No. 82 of 2001 on the Management of Water Quality Department of Industry
and Water Pollution Control, accidents that either pollute Ir. Muhammad S. Hidayat (Minister)
or may pollute the environment must be reported to the Jl. Jend. Gatot Subroto Kav. 52-53
competent agency (the Regional National Environmental Jakarta Selatan 12950
Impact Management Agency or BAPEDALDA) in the [62-21] 525 2194, 527 1380, 5271387-88
region and/or to the governor or the agency appointed by Fax: [62- 21] 526 1086
the governor of the region, the nearest village head/head
of subdistrict, district head and local police officers. Department of Trade
In the event of an accidental spill or release of haz- Dr. Marrie Elka Pangestu (Minister)
ardous or toxic materials, the responsible party must Jl. M.I. Ridwan rais No. 5 Jakarta Pusat 10110
immediately take actions to contain the spillage or release, [62-21] 3841961
restore the damaged environment and notify the nearest National Development Planning Board
local governmental agency, either orally or in writing. The (BAPPENAS)
local governmental agency must forward the report to the Prof. Dr. Armida S. Alisjahbana
competent authorities within at least three working days Jl. Taman Suropati No. 2
after receipt of the notification. Notification of accidental Jakarta 10310
spills or releases of other materials [62-21] 390 5650
No reporting obli- should be done as soon as possible. The Department of Health (DEPKES)
However, the regulations have not Dr. Endang Rahayu Sedyaningsih (Minister)
gation exists for established quantitative thresholds Jl. H.R. Rasuna Said Blok X-5
soil or groundwater below which there are no require- Kav. No. 4-9, Blok A, 2nd Floor, Kuningan
ments to notify the authorities. [62-21] 520 1587, 520 1591, 520 1590
contamination Any concerned person or party is Fax: [62-21] 520 1591
identified during also entitled to report to the compe-
tent authority any damage or potential
The Department of Manpower and
Transmigration (DEPNAKERTRANS)
the course of a damage to the environment due to any Dr. H.A. Muhaimin Iskandar, Msi (Minister)
activity, accidental spill or and release
sampling program of hazardous and/or toxic or other Jl. Jenderal Gatot Subroto Kav. 51
Jakarta Selatan
that is independent materials. [62-21] 525 5683, 525 5688
Fax: [62-21] 525 6559
of an accident or CONTAMINATION IDENTIFIED
DURING SAMPLING The Department of Energy and Mineral Resources
spill incident. Generally, no reporting obligation Dr. Darwin Zahedi Saleh (Minister)
exists for soil or groundwater con- Jl. Medan Merdeka Selatan No. 18
tamination identified during the course of a sampling Jakarta Pusat
program that is independent of an accident or spill inci- [62-21] 381 3232, 384 6596
dent. The governor of the region or the agency appointed Fax: [62-21] 384 7461
by the governor is responsible for the supervision and REGULATORY INFORMATION
monitoring of business activities within his/her region. Pusat Informasi Lingkungan Hidup
For this purpose, the responsible officials may enter (Center for Environmental Information)
the premises and take soil or water samples for analysis. Jl. Tumenggung Wiradireja No. 216 RT. 03/06
If the sample indicates that the water quality is below the Cimahpar, Bogor 16155
required standard or the soil is contaminated, the respon-
National Information and Telecommunication
sible person must immediately take the necessary actions
Body (Badan Informasi dan Telekomunikasi
to rectify the situation. The same procedure applies
Nasional-BIKN)
when sampling is undertaken in response to a reported
Jl. Merdeka Barat 9
accident.
Jakarta Pusat 10110
LIST OF KEY CENTRAL [62-21] 385 9625, 384 1972, ext. 131
GOVERNMENT AGENCIES & CONTACTS Fax: [62-21] 344 0051
Office of the State Minister for Environmental adjudikasi@bikn.every1.net
Affairs (LH) Center for Occupational Health Research
Prof. Gusti Muhammad Hatta (Minister) (HIPERKES)—Dept. of Manpower
Jl. D.I. Pandjaitan Gedung B, 2nd Fl., Kav.24 Jl. Jend. A.Yani 69-70
10
World Focus www.asse.orgJakarta Pusat Law Faculty University of Indonesia
[62-21] 424 0284 Gedung F, Lantai 1
Balai HIPERKRES and Work Safety, Bandung Depok, Indonesia
Jl. Golf No. 34, [62-21] 788 81487
Ujung Berung, Bandung 40294 Email: pri@makara.cso.ui.ac.id
Tel. & Fax: [022] 780 0995 Gedung Unit Pelayanan Teknis (UPT)
Balai HIPERKRES and Work Safety, Surabaya University of Indonesia
Jl. Dukuh Mananggal No. 122 University of Indonesia Campus, Depok
Surabaya 60234
OTHER CONTACTS
[031] 828 0440
Embassy of Indonesia
Fax: [031] 829 4277
2020 Massachusetts Ave. NW
Balai HIPERKRES and Work Safety, Medan Washington, DC 20036
Jl. Medan Belawan KM. 11, 5 No. 64 (202) 775-5200
Medan 20244 Fax: (202) 775-5365
[061] 685 0262
U.S. Department of State
Fax: [061] 685 7322 Overseas Travel Advisories
Balai HIPERKRES and Work Safety, Samarinda (202) 6475225
Jl. Santosa No. 9 Indonesia Desk
Samarinda 75117 (202) 647-1221
[054] 732941
Visa Information
Balai HIPERKRES and Work Safety, Makassar (202) 663-1225
Jl. Ujung Pandang Baru No. 59
Makassar 90214 U.S. Department of Commerce
Tel. & Fax: [0411] 452 390 Desk Officer for Indonesia & ASEAN
Market Access and Compliance
Indonesian Center for Environmental Law (ICEL) U.S. Department of Commerce
Jl. Dempo II No. 21, Kebayoran Baru Room 2325
Jakarta 12120 14th and Constitution Ave. NW
[62-21] 726 2740, 723 3390 Washington, DC 20230
Indonesian Society of Environmental Professionals (202) 482-3894
(IPLHI) American Indonesian Chamber of Commerce
Secretariat 317 Madison Ave., Ste. 520
Jl. Bekasi Timur Raya No. 146, Cipinang New York, NY 10017
Jakarta 13410 (212) 6874505
[62-21] 819 8010 Fax: (212) 6875844
Fax: [62-21] 850 5050
The Embassy of the United States
iplhi@cbn.net.id
Merdeka Selatan 4-5, Box 1
Jl. Martimbang II/B Jakarta 10110, Indonesia (APO AP 96520)
Kebayoran Baru Tel: [62-21] 3435-9000
Jakarta Selatan 12120 Fax: [62-21] 3435-9922
[62-21] 726 2654 Telex: 44218 AMEMB JKT
PDH (Pusat Dokumentasi Hukum, Center American Chamber of Commerce in Indonesia
for Law Documentation) World Trade Center, 11th Fl.
Law Faculty University of Indonesia Jl. Jendral Sudirman, Kav. 29-31
Jl. Cirebon No. 5 Jakarta 12084, Indonesia
Jakarta Pusat [62-21] 5262860
Tel: [62-21] 335 432 Fax: [62-21] 5712861
Fax: [62-21] 315 7334 Telex: 62822 LMARK IA
11
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