INDONESIA Law and Practice Contributed by: Emir Nurmansyah, Serafina (Fina) Muryanti and Adya Sepasthika, ABNR Counsellors at Law
3.4 Eminent Domain, Condemnation and Expropriation Rights to Construct and Operate Generation Facilities Generally, a proponent for the construction and operation of a generation facility does not have eminent domain, condemnation or expropriation rights to surface access and use. To acquire land or surface access and use rights, the proponent must obtain the Approval of Conformity of Space Utilisation Activities permit as evidence that the location where the generation facilities are to be built and operated can be used for power gen- eration activities. Upon obtaining the permit, the proponent can purchase or acquire the land from the landowners. There is no specific regulation on the procedure for compensation for the land- owners unless it is a public-private partnership (PPP) project, for which land acquisition is based on Law No 2 of 2012 on the Acquisition of Land for Development in Public Interest as amended by Law 6/2023. In general, the compensation must be based on the market price or value, and for a PPP project, it must be based on a calcula- tion determined by a land appraiser who holds a permit from the Minister of Finance and a licence from the Land Administrator. 3.5 Decommissioning a Generation Facility There is no specific regulation for decommis- sioning a generation facility. However, since decommissioning activities will likely have an impact on the environment, decommissioning must comply with any environmental and safety regulations applicable to the activities. Further, the AMDAL should also contain terms and con- ditions for the decommissioning of the relevant generation facilities; thus, the project company/ IPP/owner of the asset must follow and com- ply with its Ministry of Environment-approved AMDAL.
the asset must obtain the following main licenc- es: • Approval of Conformity of Space Utilisation Activities ( Persetujuan Kesesuaian Kegiatan Pemanfaatan Ruang PKKPR); • Environmental Approval or Approval of Envi- ronmental Impact Analysis Documents ( Ana- lisis Mengenai Dampak Lingkunga ; AMDAL); and • Building Approval ( Izin Mendirikan Bangunan IMB). During the preparation of the AMDAL, the project company/IPP/owner of the asset must conduct a public consultation, and the relevant authority (ie, the Ministry of Environment or its regional office) will conduct a detailed review or assess- ment before it approves the AMDAL. To commercially operate a generation facility, the project company/IPP/owner of the asset must initially obtain a Worthiness Certificate for instal- lation purposes. 3.3 Approvals to Construct and Operate Generation Facilities The construction and operation of the genera- tion facility must comply with the conditions set out in the approved AMDAL and the design approved under the Building Approval. It must also comply with any standard safety, health and environment requirements under the regulations (which also should have been incorporated into or reflected in the AMDAL). The regulations do not contain provisions for relaxation of a term or condition for approval.
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