through the Distribution of Authority to Issue Environmental Permits
 

Uncertainty regarding the division of authority in issuing environmental permits is one of the biggest obstacles to promoting sustainable investment in Indonesia. The lengthy and uncoordinated process creates legal uncertainty and hinders environmental protection efforts. Recognizing the importance of improving governance, the government has now launched a new measure through Regulation of the Minister of Environment/Environmental Management Agency No. 22 of 2025 concerning Authority to Issue Environmental Permits which was ratified on 27 October 2025.

One of the most important updates to this regulation is the clarification of authority distribution. Previously, many permits had to go through the central government, but now the process is divided between the central government, provinces, and regencies/cities based on the scale of the activity and its level of risk to the environment. This step is expected to not only speed up the permitting process, but also ensure that each level of government has a balanced responsibility in maintaining environmental sustainability.

The Minister of Environment and the Head of the Environmental Control Agency are authorized to issue approvals for large projects such as cross-provincial activities, cross-border activities, national strategic projects, or high-risk activities located more than 12 miles offshore. At the regional level, governors have the authority to approve activities that cross several regencies within a province or that have a significant economic and social impact on their region. Meanwhile, Regents and Mayors have the authority to regulate business activities that are only located in one regency or city.
In addition, the government grants special authority to the Head of the Nusantara Capital Authority (IKN) and the Head of the Batam Free Trade Zone and Free Port Authority (KPBPB Batam) to issue environmental approvals in their respective national strategic areas. This demonstrates that environmental policy is now more adaptive to regional needs and area characteristics.

All environmental approval processes are now carried out in an integrated manner through the OSS (Online Single Submission) system. With this system, business actors can apply for permits online without having to go through lengthy processes at multiple agencies. In addition to speeding up services, OSS integration also helps ensure transparency and accountability in the issuance of environmental approvals.

Regulation of the Minister of Environment/Environmental Management Agency No. 22 of 2025 is expected to provide legal certainty and protection for the environment. A clear division of authority helps businesses know which agency is authorized to handle their permits. On the other hand, the government can focus more on monitoring and assessing environmental impacts according to their level of risk.

However, the success of this regulation does depend not only on the rules, themselves. Effective implementation requires strong coordination between the central and regional governments, as well as capacity building for the apparatus. Strict supervision and an optimal OSS system are also key to ensuring that this policy brings about positive change.

Ultimately, the success of this policy is not only measured by the speed of licensing, but also by the extent to which it is able to maintain a balance between economic interests and environmental sustainability. Regulation of the Minister of Environment/Environmental Management Agency No. 22 of 2025 symbolizes Indonesia's commitment to transparent, efficient, and equitable environmental governance, an important step towards a sustainable future.