AMDAL stands for Analisis Mengenai Dampak Lingkungan Hidup, Indonesia’s environmental impact assessment framework. It concerns the significant environmental impacts of a planned business or activity and supports decision-making on whether, and under what conditions, that activity may proceed. Unlike PKRT or product-focused SNI certification, AMDAL concerns the proposed project or operation rather than the marketability of an individual product.

Government Regulation No. 22 of 2021 provides the overarching framework for environmental protection and management, including environmental approval, or Persetujuan Lingkungan. AMDAL preparation and environmental feasibility assessment form one route to obtaining that approval. Another route involves preparing and reviewing UKL-UPL documentation. Environmental approval is a prerequisite for the relevant business licensing or government approval.

Not every business or factory requires a full AMDAL. Indonesia distinguishes between several environmental-documentation routes:

• AMDAL: an environmental impact assessment for planned activities with significant environmental impacts.
• UKL-UPL: environmental management and monitoring documentation for activities falling within the applicable category below the AMDAL requirement.
• SPPL: a statement of commitment to environmental management and monitoring for activities assigned to that route.

Minister of Environment and Forestry Regulation No. 4 of 2021 sets out the relevant lists and criteria for determining which route applies. The determination should be based on the proposed activity and applicable thresholds, rather than an assumption that all manufacturers require AMDAL or that all small businesses are exempt from environmental documentation.

For manufacturers, environmental compliance is also an ongoing operational obligation. Government Regulation No. 22 of 2021 covers matters including water and air quality, hazardous and non-hazardous waste, supervision and administrative sanctions. Obtaining environmental approval is therefore not the end of the process: the business must implement the environmental obligations attached to its approved activities.