Indonesia’s ambitious shift toward renewable energy is driving new challenges in environmental permitting under the RUPTL 2025-2034. With this roadmap, the government plans to source over 50% of its additional energy capacity from renewables, unlocking an unprecedented scale of development across solar, wind, hydro, and geothermal. While this transition is necessary for sustainability and energy security, it also brings regulatory, commercial, and technical challenges, especially when it comes to securing environmental approvals.
The Three Layers of Complexity
Environmental permitting under Indonesia’s RUPTL presents developers with a series of layered challenges that must be addressed early in project planning.
1. Regulatory Complexity
Indonesia’s environmental permitting landscape is multi-layered and often location-dependent. Projects must navigate a blend of national and regional regulations, including Environmental Impact Assessment (EIA) or Analisis Mengenai Dampak Lingkungan (Amdal), and Environmental and Social Impact Assessment (ESIA). These frameworks vary by project scale and site sensitivity, and the regulatory environment continues to evolve alongside national sustainability goals. Developers face hurdles in aligning with changing requirements, especially when they differ across jurisdictions or overlap with social and biodiversity safeguards. Specifically, two critical steps in the permitting process are:
- Registering the business license in line with Indonesian Business Classification Standard (KBLI) through the Online Single Submission (OSS) system. This connects to the Amdalnet platform for processing environmental documents such as Amdal, Environmental Management and Monitoring Efforts (UKL-UPL), Statement of Environmental Management Commitment (SPPL), Detailed Environmental Management and Monitoring Plans (Detailed RKL-RPL), Environmental Evaluation Document (DELH), or Environmental Management Document (DPLH).
- Securing technical approvals (Pertek) by coordinating with the One-Stop Integrated Service (PTSP) under the relevant technical ministries (e.g., environment or transportation), covering requirements for emissions, wastewater, hazardous wastes or traffic.
Understanding these regulatory steps is essential to formulating an effective permitting strategy and avoiding unnecessary delays.
2. Commercial Complexity
For investors and developers, environmental permitting is a critical factor influencing project bankability. Delays or uncertainties in obtaining approvals can hinder access to financing, particularly for large-scale projects or those tied to cross-border initiatives, such as power exports to Singapore. In these cases, early and thorough environmental and social due diligence is essential to reassure lenders, de-risk timelines, and avoid costly rework downstream. Commercial risks may arise in the form of liability, financial exposure, reputational impact, credit constraints, or market-related delays. ESC’s environmental and social due diligence process is designed to address not only the risks a project poses to the environment and communities but also the commercial risks that may emerge from gaps in compliance, ESG alignment, or stakeholder concerns, ensuring a more comprehensive risk profile for developers and financiers.
3. Technical Complexity
The diversity of Indonesia’s renewable energy potential adds another layer of difficulty. Projects involving hybrid systems, energy storage, or cross-island transmission demand a more integrated approach to environmental assessments. Each energy type, be it geothermal in Sulawesi, solar in Java, or offshore wind, brings unique environmental, engineering, and permitting needs. Site access, interconnection, and long-term resource availability must also be factored into project design and approval pathways. To support this, ESC’s approach begins with identifying potential sensitive receptors early, such as key ecological zones, nearby communities, culturally important areas, and worker populations. We also assess regulated geospatial constraints, including spatial planning compliance and areas under business license moratorium. This initial analysis helps project developers understand critical environmental and social design criteria, enabling better site selection and reducing permitting risks.
Site-Specific Considerations That Can’t Be Ignored
Beyond regulatory frameworks, the physical and social context of each site can significantly affect environmental permitting outcomes. Indonesia’s rich biodiversity means that many project areas may intersect with protected forests, marine ecosystems, or high conservation value zones. In such areas, developers must carry out comprehensive biodiversity studies and implement mitigation plans from the outset. Equally important are social and community considerations. Indigenous land rights, Free, Prior and Informed Consent (FPIC), and sustained stakeholder engagement are critical to gaining and maintaining social license to operate. And as many renewable projects are built in phases or involve multiple sites, cumulative impact assessments and long-term monitoring plans are vital for sustained compliance and stakeholder trust.
Navigate Permitting with Regional and International Expertise
Environmental approvals can make or break project timelines, financing, and delivery. Delays or gaps in permitting often lead to redesigns, increased costs, and investor pushback. Early planning is essential. ESC helps developers and investors manage environmental permitting under Indonesia’s RUPTL through integrated Planning & Assessment services designed for renewable energy success.
With a strong track record across Indonesia and the APAC region, we combine in-depth local regulatory knowledge with international experience, delivering projects to the standards of global investors, Multilateral Development Banks (MDBs), and cross-border stakeholders. We understand what drives bankability and deliver strategies that reduce permitting risks, improve investor confidence, and keep your project moving forward.
Our Planning & Assessment services help you:
- Navigate EIA/AMDAL/ESIA processes with clarity
- Minimise delays and compliance risks
- Strengthen ESG performance and meet international expectations
Planning a renewable energy or infrastructure project in Indonesia or Southeast Asia? Work with a team that knows the landscape—locally and globally.