Environmental Protection and Management Law

The Environmental Protection and Management Law, lays down various regulations in relation to environmental protection, as set out below:

• The Law requires the Ministry of Environment and Forestry (“MEF”) to develop a National Environmental Protection and Management Plan, which must contain information regarding utilization of natural resources, environmental protection, and climate change adaptation and mitigation (Articles 5 and 9). The Law specifies that Indonesia’s natural resources must be utilized in accordance with the National Plan (Article 12).
• The Law requires the Indonesian Government to develop economic instruments to protect the environment, including instruments such as environmental funding, guarantee funds for environmental restoration, tax incentives, and environmental taxes and levies (Articles 42 and 43).
• The Law also requires the Indonesian Government to conduct an inventory of Indonesia’s GHG emissions (Article 63). In addition, the Indonesian Government is also required to develop an environmental information system to support environmental protection (Article 62). 
• Under the Law, any entity that pollutes the environment has an obligation to mitigate that pollution and to restore the environment (Articles 53 and 54). In this regard, the Law provides that business entities which hold an environmental licence are required to provide guarantee funds for restoring the environment in case of pollution (Article 55). 

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