It is very important to understand that an industrial enterprise must basically be located in an industrial area. This is because an industrial enterprise should not be located in a place that can disturb the surrounding environment. However, this obligation is exempted for industrial companies that will run industries and are located in districts/cities that:

1. Do not yet have an industrial estate;
2. Has an industrial estate but all industrial lots in the industrial estate have been exhausted;
3. Special economic zones that have industrial zones.

Small and medium-sized industrial companies, which do not have a negative impact on the environment, and industries that use special raw materials and production processes, do not need to be located in the industrial estate.

In addition, industrial companies within the industrial zone must have a detailed environmental management plan and environmental monitoring plan approved and authorized by the company or the industrial zone manager. This environmental approval is documented in a statement of environmental management capability authorized by the company or industrial estate manager. Protect the surrounding environment, including avoiding groundwater extraction.

Green industry, an industry that prioritizes the efficient and sustainable use of resources. This allows industrial development to be in harmony with the preservation of environmental functions and also to provide benefits to society.

Article 82 of the Industry Law states that to realize green industry, industrial companies gradually:

1. Build a joint commitment and formulate a company policy for green industry development;
2. Implement the green industry development policy;
3. Implementing an environmentally friendly management system; and
4. Developing business networks in order to obtain raw materials, auxiliary materials, and environmentally friendly technologies.

In addition, “implementing an environmentally friendly management system” means that industrial companies pay attention to and apply the principles of protecting environmental functions by conducting continuous monitoring, evaluation, and improvement activities.

To implement green industry, a standardization is made that is applied in stages and can eventually be officially set by the minister. Industrial activities must comply with green industry standards during the time period set by the minister. Therefore, based on the explanation above, industrial companies are prohibited from operating in an environment that has a high potential to pollute the environment.

Industrial companies that do not comply with the provisions of green industry standards if the industry concerned has been applied compulsorily, will be subject to administrative sanctions in the form of:

1. Written warning;
2. Administrative fines;
3. Temporary closure;
4. Suspension of Industry business license; and/or
5. Revocation of Industrial business license.

Furthermore, the prohibition of business activities that damage or pollute the environment is also regulated in Article 87 paragraph (1) of the PPLH Law as follows:

Every person in charge of a business and/or activity that commits an unlawful act in the form of pollution and/or destruction of the environment that causes harm to others or the environment is obliged to pay compensation and/or take certain actions.

Thus, business activities that cause pollution and/or damage to the environment are considered unlawful. In cases where this is proven to be the case, the person in charge of the business or activity is liable to compensate for the harm caused.

If a person feels aggrieved by pollution caused by an industrial undertaking, they can complain or submit information either orally or in writing to the responsible agency regarding the possibility of environmental pollution and/or destruction from activities and undertakings at the planning, implementation, and post-implementation stages, as explained in Permen LHK P.22/MENLHK/SETJEN/SET.1/3/2017.

Legal Basis:

1. Law Number 32 of 2009 concerning Environmental Protection and Management;
2. Law Number 3 of 2014 concerning Industry;
3. Government Regulation in Lieu of Law Number 2 of 2022 concerning Job Creation;
4. Law Number 6 of 2023 on the Stipulation of Government Regulation in Lieu of Law Number 2 of 2022 on Job Creation into Law;
5. Government Regulation Number 20 of 2024 concerning Industrial Territory;
6. Minister of Environment and Forestry Regulation Number P.22/MENLHK/SETJEN/SET.1/3/2017 of 2017 concerning Procedures for the Management of Complaints of Alleged Pollution and/or Environmental Damage and/or Forest Destruction.

Reference:

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