An Implementing Regulation on Environmental Audits

Minister of the Environment Regulation No. 17 of 2010 on Environmental Audits (‘Regulation’) has been issued as an implementing regulation of Article 52 of Law No. 32 of 2009 on Environment Protection and Management (‘Law No. 32’). The Regulation provides general provisions on environmental audits, competency of environmental auditors, environmental audit service providers, and supervision.

Article 1 (1) defines an environmental audit as an evaluation that is conducted to evaluate the compliance of a business and/or its activities with the requirements and procedures stipulated by the government. The government has mandated businesses and/or their activities to be subject to environmental audits in order to ensure compliance with Law No. 32. Environmental audits consists of compulsory environmental audits and voluntarily environmental audits. Compulsory environmental audits are imposed on certain businesses and activities that have a high-risk of  environmental impact; and on business actors and activities that demonstrate non-compliance with the prevailing laws and regulations. 

Environmental audits have to be performed by competent environmental auditors, holding the qualifications of either an auditor or an auditor in chief. Pursuant to Article 7, an auditor in chief must have the ability to, among others: (i) understand the principles, methods and procedures of environmental audits, (ii) perform environmental audits which include the stages of planning, implementation, conclusion and reporting, and (iii) recommend potential improvements following the environmental audit. Competency training can be conducted by a training competency institution (Lembaga Pelatihan Kompetensi or LPK) that is accredited and registered with the Minister of the Environment. Finally, to be certified as an environmental auditor, it is necessary to pass the competency evaluation stipulated by the competency certification institution (Lembaga Sertifikasi Kompetensi or LSK) that is appointed by the Minister of Environment.

The Regulation also addresses environmental audit service providers. According to Article 12, such institutions have to take the form of a legal entity, having at least 1 permanent certified chief environmental auditor and a cooperation agreement with a temporary environmental auditor, along with a quality management system and internal quality controls over environmental audits (such as ensuring impartiality).

With regard to supervision, the Minister of the Environment will supervise the LPKs and the LSK. While the certified environmental auditors will be supervised by the LSK. Article 22 provides that to meet the demand for environmental auditors (prior the appointment of the LSK by the Minister of the Environment), the Minister of the Environment will conduct equivalency recognition of foreign environmental auditors who meet the listed requirements.

The exact procedures concerning environmental audits will be set out further in upcoming ministerial regulation.

This Regulation has been in force since 18 August 2010.