28/10/2009
Issuance of Regional Nuisance Permit Guidelines
The Indonesian Government continues its efforts to provide business certainty in Indonesia and recently issued guidelines for the issuance of regional nuisance permits under Regulation of the Minister of Domestic Affairs No. 27 Year 2009 dated 19 June 2009 (“Regulation No. 27/2009”).
Under this Regulation No. 27/2009, the regional nuisance permit is to be regulated under a separate regional regulation that at least contains provisions on the following:
a. nuisance criteria;
b. permit requirements;
c. authority of the permit issuer;
d. permit retribution.
The criteria for nuisance are further divided into criteria for environmental, social society, and economic nuisances. Environmental nuisances are, among others, nuisances over functions of land, water, river, sea and air. Social society nuisances include threats to morality and public order. Economic nuisances include production decrease and decrease of the economic value of immovable and movable assets in the location of the activities concerned.
The government agencies authorized under Regulation 27/2009 to issue a nuisance permit are regency heads or mayors. Particularly for the Province of DKI Jakarta, the nuisance permit is to be issued by the Governor. These authorized government agencies are required to state the fees associated with the processing of a nuisance permit in an attachment to the decree pertaining to the permit, and must issue its decision regarding the application at the latest 15 (fifteen) working days as of their receipt of the complete application.
Regulation 27/2009 also stipulates the duties and tasks of the above mentioned authorized government agencies, the rights and obligations of the applicants, and the application procedures.
Under this Regulation No. 27/2009, basically all business activities are required to have a nuisance permit except for:
a) business activities in an Industrial Estate, Bonded Zone and Special Economic Zone;
b) business activities in buildings or areas that already have a nuisance permit; and
c) micro and small business activities in buildings or land plots that have no impact outside of the respective building or land plot.
The nuisance permit is valid for as long as the holder carries out its business activities, but the holder is required to apply for an amendment to the permit in the event of changes that result in an increase in the degree of the nuisance caused by the business activities concerned.
With the coming into force of this regulation, all previous regional regulations must have been made in compliance with Regulation No. 27/2009 at the latest 1 (one) year as of the entering into force of this Regulation No. 27/2009.
This Regulation No. 27/2009 has been effective as of 19 June 2009. [Ayik C. Gunadi]