INDONESIA Law and Practice Contributed by: Emir Nurmansyah, Serafina Muryanti, Adya Sepasthika and Kenny Poltak, ABNR Counsellors at Law
ity, the project company/IPP/owner of the asset must obtain the following main licences: • Approval of Conformity of Space Utilisation Activi- ties ( Persetujuan Kesesuaian Kegiatan Peman- faatan Ruang – PKKPR); • Environmental Approval or Approval of Environ- mental Impact Analysis Documents ( Analisis Men- genai Dampak Lingkungan – AMDAL); and • Building Approval ( Persetujuan Bangunan Gedung – PBG). During the preparation of the AMDAL, the project company/IPP/owner of the asset must conduct a pub- lic consultation, and the relevant authority (ie, the Min- istry of Environment or its regional office) will conduct a detailed review or assessment before it approves the AMDAL. To commercially operate a generation facility, the project company/IPP/owner of the asset must ini- tially obtain a Worthiness Certificate for installation purposes. 3.3 Approvals to Construct and Operate Generation Facilities The construction and operation of the generation 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. 3.4 Eminent Domain, Condemnation and Expropriation Rights to Construct and Operate Generation Facilities Generally, a proponent for the construction and opera- tion 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 genera- tion facilities are to be built and operated can be used for power generation activities.
Upon obtaining the permit, the proponent can pur- chase or acquire the land from the landowners. There is no specific regulation on the procedure for compen- sation for the landowners 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 pro- ject, it must be based on a calculation 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 decommissioning a generation facility. However, since decommissioning activities will likely have an impact on the environment, decommissioning must comply with any environmen- tal and safety regulations applicable to the activities. Further, the AMDAL should also contain terms and conditions for the decommissioning of the relevant generation facilities; thus, the project company/IPP/ owner of the asset must follow and comply with its Ministry of Environment-approved AMDAL. 4. Transmission Lines and Associated Facilities 4.1 Constructing and Operating Transmission Lines and Associated Facilities Please see 3.1 Constructing and Operating Gen- eration Facilities , as the same regulations are also applicable for the construction and operation of trans- mission lines and associated facilities. For transmis- sion lines, the proponent must make environmental management and monitoring efforts and obtain a rec- ommendation from the Environment Office. Proof of these efforts does not require a detailed review and assessment (including public hearing); only inspection of the requisite documents by the Environment Office and the issue of a recommendation (which serves as an approval) is required.
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