09 Mar 2022
Risk-Based Licensing Framework Introduced for Indonesia’s Nuclear Sector

On 10 January 2022, the Nuclear Energy Regulatory Agency (“Bapeten”) issued Regulation No. 1 of 2022 on Business Licensing in the Nuclear Sector (“Reg. 1/2022”).[1] It creates a new framework for accommodating the nuclear sector within the risk-based licensing system introduced by Government Regulation No. 5 of 2021 (“GR 5/2021”).[2] It revokes the previous nuclear-sector licensing regulation, Bapeten Regulation No 6 of 2018.[3]

The new framework covers multi-sector licensing and approval, and encompasses licensing requirements, exceptions, applications for extension, supervision and sanctions.

Some key takeaways from Reg. 1/2022 are as follows:

A. Nuclear Sub-Sectors

Reg. 1/2022 categorizes nuclear utilization and business activities into a multiplicity of subsectors:

Subsector

Business Activity

Utilization of Ionizing Radiation Sources (“Subsector I”)
  1. Production of radioisotopes;
  2. Production of radioisotopes and radiopharmaceuticals;
  3. Production of radiopharmaceuticals;
  4. Production of equipment that uses radioactive substances;
  5. Production of consumer goods;
  6. Calibration through the use of ionizing radiation sources;
  7. Management of radioactive waste;
  8. Export of radioactive substances;
  9. Import and/or transfer of radioactive substances;
  10. Transfer of ionizing radiation generators;
  11. Production of ionizing radiation generators;
  12. Import or export of ionizing radiation generators;
  13. Export of consumer goods[4];
  14. Import or transfer of consumer goods;
  15. Education, research and/or developments relating to the use of ionizing radiation sources; and
  16. Other uses such as for nuclear medicine, radiotherapy, irradiation with irradiators, etc.

Nuclear Installations and Nuclear Materials (“Subsector II”)
  1. Nuclear reactors;
  2. Non-reactor nuclear installation (“INNR”); and
  3. Utilization of nuclear materials.

Nuclear Mineral Mining

(“Subsector III”)
  1. Construction work and mining of radioactive minerals;
  2. Processing of radioactive minerals;
  3. Processing of associated radioactive minerals; and Storage of associated radioactive minerals.

Supporting Activities for Nuclear Sector (“Subsector IV”)
  1. Nuclear Testing Institutes
  2. Nuclear Training Institutes

The licenses in Reg. 1/2022 do not appear to be exhaustive. For instance, in Subsector III, the procedures for obtaining a license for a radioactive mineral mining area (WPPMR) or a radioactive mining assignment license are not specified (these are to be dealt with later in the implementing regulation for Law No 4 of 2009 on Mineral and Coal Mining, as last amended by Law No 11 of 2020).

B. Business Licensing and Approvals

  1. 1. Licensing

Reg 1/2022 specifies the types of business undertaking permitted to participate in each subsector. It also stipulates the requisite licensing documentation applicable to each subsector:

Subsector

Type of Business Undertaking

Licensing Documents Required

Additional Requirements

Subsector I

Encompassing:

  1. Individuals;
  2. Business entities;
  3. Representative offices; and
  4. Foreign business entities
  1. Business registration number (“NIB”)
  2. License

License holder must comply with:

  1. Licensing requirements [5]
  2. Standards for business activities and products [6]
  3. Radiation and radioactive material safety and security requirements[7]

Subsector II

Limited to business entities
  1. NIB
  2. Multiple licenses concerning:
    1. Site;
    2. Construction;
    3. Commissioning;
    4. Operating license; and
    5. Decommissioning license

License holder must comply with:

  1. Licensing requirements
  2. Standards for business activities and products
  3. Nuclear installation and materials safety and security requirements[8]

Subsector III

Limited to business entities
  1. NIB
  2. License

License holder must comply with:

  1. Licensing requirements
  2. Standards for business activities and products
  3. Nuclear mineral mining safety and security requirements[9]

Subsector IV

Encompassing:

  1. Individuals;
  2. Business entities;
  3. Representative offices; and
  4. Foreign business entities
  1. NIB
  2. Certificate of compliance with standards

Certificate holder must comply with:

  1. Standards for business activities and products

  1. 2. Approvals

Reg. 1/2022 also provides that certain activities, including those listed below, will require additional Bapeten Approval:

Category

Approval for

Modification for utilization of Ionizing radiation sources
  1. Modification

Nuclear installation
  1. Site evaluation
  2. Design modification
  3. Other modifications
  4. Utilization
  5. Decommissioning
  6. Re-Operation

Nuclear mining

  1. Design modifications
  2. Approval for other modifications
  3. Utilization of radioactive associated minerals
  4. Permanent disposal
  5. Mine decommissioning

Exports and imports
  1. Export and import of ionizing radiation sources
  2. Export and import of nuclear materials or radioactive materials

Reshipment
  1. Reshipment of ionizing radiation sources and used nuclear materials

3. Post-Expiry Obligations

Upon expiry or termination of licenses specified in Subsectors I, II or III, license holders are obliged to obtain a declaration of removal from BAPETEN, as described below:

Subsector

Bapeten Declaration

Requirement

Subsector I

Declaration of removal
  1. Report on final handling of ionizing radiation power plant or radioactive substances;
  2. Report on the measurement of radiation exposure or radioactive substance contamination; and/or
  3. Ionizing radiation source facility decommissioning implementation report.

Subsector II

Declaration of removal
  1. Results of the decommissioning of nuclear installation;
  2. Results of the handling of radioactive waste;
  3. Environmental permit implementation report in accordance with environmental protection and management regulations; and
  4. Results of measurement of exposure to radiation and radioactive contamination on and off the site.

Subsector III

Declaration of removal

4. Licensing

The licenses, certificates of standards compliance, approvals or declarations stated above must be applied for via the integrated OSS-RBA system introduced by GR 5/2021, and will be subject to Bapeten approval. A license fee is also payable by the applicant.

The validity period, required steps and the application review process will vary according to the license applied for (e.g., between 36 and 48 months for a nuclear installation-related license, counting from receipt of correct and complete application documents; in practice, however, the process is likely to be more protracted than suggested by Reg. 1/2022).

  1. ABNR Commentary

Reg. 1/2022 functions as an implementing regulation for licensing in the nuclear sector following the introduction of risk-based licensing by GR 5/2021. Given the understandably heavy regulation of the nuclear sector, the framework provided by Reg. 1/2022 encompasses a complex system of checks and monitoring requirements that apply before, during and after engagement in the sector.

Reg. 1/2022 therefore finds itself walking a fine line between the government’s reasonable concern for nuclear safety-related considerations on the one hand and its strong motivation, encapsulated in GR 5/2021, to facilitate and de-regulate business on the other.

By partnerMr. Ayik Candrawulan Gunadi(agunadi@abnrlaw.com) and associateMr. Kenny Adrianus (kadrianus@abnrlaw.com).

This ABNRNewsand its contents are intended solely to provide a general overview, for informational purposes, of selected recent developments in Indonesian law. They do not constitute legal advice and should not be relied upon as such. Accordingly, ABNR accepts no liability of any kind in respect of any statement, opinion, view, error, or omission that may be contained in this legal update. In all circumstances, you are strongly advised to consult a licensed Indonesian legal practitioner before taking any action that could adversely affect your rights and obligations under Indonesian law.

[1] Peraturan Kepala Badan Pengawas Tenaga Nuklir Nomor 1 Tahun 2022 tentang Penatalaksanaan Perizinan Berusaha Berbasis Risiko Sektor Ketenaganukliran

[2] Peraturan Pemerintah Nomor 5 Tahun 2021 tentang Penyelenggaraan Perizinan Berusaha Berbasis Risiko

[3] Peraturan Kepala Badan Pengawas Tenaga Nuklir Nomor 6 Tahun 2018 tentang Tata Cara Perizinan Berusaha Terintegrasi Secara Elektronik Sektor Ketenaganukliran

[4] Reg 1/2022 defines consumer goods as equipment or items known to contain Radioactive Substances or which are a result of activation or equipment or articles that produce ionizing radiation, the use of which in the community does not require supervision.

[5] Currently stipulated under Appendix II – Nuclear Sector of GR 5/2021

[6] Currently stipulated under Head of BAPETEN Regulation No 3 of 2021 / Peraturan Kepala Badan Pengawas Tenaga Nuklir Nomor 3 Tahun 2021 tentang Standar Kegiatan Usaha dan Standar Produk pada Penyelenggaraan Perizinan Berusaha Berbasis Risiko Sektor Ketenaganukliran

[7] To be stipulated specifically under Head of BAPETEN Regulation

[8] To be stipulated specifically under Head of BAPETEN Regulation

[9] To be provided for in more detail by a separate Bapeten Regulation

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09 Mar 2022
Risk-Based Licensing Framework Introduced for Indonesia’s Nuclear Sector

On 10 January 2022, the Nuclear Energy Regulatory Agency (“Bapeten”) issued Regulation No. 1 of 2022 on Business Licensing in the Nuclear Sector (“Reg. 1/2022”).[1] It creates a new framework for accommodating the nuclear sector within the risk-based licensing system introduced by Government Regulation No. 5 of 2021 (“GR 5/2021”).[2] It revokes the previous nuclear-sector licensing regulation, Bapeten Regulation No 6 of 2018.[3]

The new framework covers multi-sector licensing and approval, and encompasses licensing requirements, exceptions, applications for extension, supervision and sanctions.

Some key takeaways from Reg. 1/2022 are as follows:

A. Nuclear Sub-Sectors

Reg. 1/2022 categorizes nuclear utilization and business activities into a multiplicity of subsectors:

Subsector

Business Activity

Utilization of Ionizing Radiation Sources (“Subsector I”)
  1. Production of radioisotopes;
  2. Production of radioisotopes and radiopharmaceuticals;
  3. Production of radiopharmaceuticals;
  4. Production of equipment that uses radioactive substances;
  5. Production of consumer goods;
  6. Calibration through the use of ionizing radiation sources;
  7. Management of radioactive waste;
  8. Export of radioactive substances;
  9. Import and/or transfer of radioactive substances;
  10. Transfer of ionizing radiation generators;
  11. Production of ionizing radiation generators;
  12. Import or export of ionizing radiation generators;
  13. Export of consumer goods[4];
  14. Import or transfer of consumer goods;
  15. Education, research and/or developments relating to the use of ionizing radiation sources; and
  16. Other uses such as for nuclear medicine, radiotherapy, irradiation with irradiators, etc.

Nuclear Installations and Nuclear Materials (“Subsector II”)
  1. Nuclear reactors;
  2. Non-reactor nuclear installation (“INNR”); and
  3. Utilization of nuclear materials.

Nuclear Mineral Mining

(“Subsector III”)
  1. Construction work and mining of radioactive minerals;
  2. Processing of radioactive minerals;
  3. Processing of associated radioactive minerals; and Storage of associated radioactive minerals.

Supporting Activities for Nuclear Sector (“Subsector IV”)
  1. Nuclear Testing Institutes
  2. Nuclear Training Institutes

The licenses in Reg. 1/2022 do not appear to be exhaustive. For instance, in Subsector III, the procedures for obtaining a license for a radioactive mineral mining area (WPPMR) or a radioactive mining assignment license are not specified (these are to be dealt with later in the implementing regulation for Law No 4 of 2009 on Mineral and Coal Mining, as last amended by Law No 11 of 2020).

B. Business Licensing and Approvals

  1. 1. Licensing

Reg 1/2022 specifies the types of business undertaking permitted to participate in each subsector. It also stipulates the requisite licensing documentation applicable to each subsector:

Subsector

Type of Business Undertaking

Licensing Documents Required

Additional Requirements

Subsector I

Encompassing:

  1. Individuals;
  2. Business entities;
  3. Representative offices; and
  4. Foreign business entities
  1. Business registration number (“NIB”)
  2. License

License holder must comply with:

  1. Licensing requirements [5]
  2. Standards for business activities and products [6]
  3. Radiation and radioactive material safety and security requirements[7]

Subsector II

Limited to business entities
  1. NIB
  2. Multiple licenses concerning:
    1. Site;
    2. Construction;
    3. Commissioning;
    4. Operating license; and
    5. Decommissioning license

License holder must comply with:

  1. Licensing requirements
  2. Standards for business activities and products
  3. Nuclear installation and materials safety and security requirements[8]

Subsector III

Limited to business entities
  1. NIB
  2. License

License holder must comply with:

  1. Licensing requirements
  2. Standards for business activities and products
  3. Nuclear mineral mining safety and security requirements[9]

Subsector IV

Encompassing:

  1. Individuals;
  2. Business entities;
  3. Representative offices; and
  4. Foreign business entities
  1. NIB
  2. Certificate of compliance with standards

Certificate holder must comply with:

  1. Standards for business activities and products

  1. 2. Approvals

Reg. 1/2022 also provides that certain activities, including those listed below, will require additional Bapeten Approval:

Category

Approval for

Modification for utilization of Ionizing radiation sources
  1. Modification

Nuclear installation
  1. Site evaluation
  2. Design modification
  3. Other modifications
  4. Utilization
  5. Decommissioning
  6. Re-Operation

Nuclear mining

  1. Design modifications
  2. Approval for other modifications
  3. Utilization of radioactive associated minerals
  4. Permanent disposal
  5. Mine decommissioning

Exports and imports
  1. Export and import of ionizing radiation sources
  2. Export and import of nuclear materials or radioactive materials

Reshipment
  1. Reshipment of ionizing radiation sources and used nuclear materials

3. Post-Expiry Obligations

Upon expiry or termination of licenses specified in Subsectors I, II or III, license holders are obliged to obtain a declaration of removal from BAPETEN, as described below:

Subsector

Bapeten Declaration

Requirement

Subsector I

Declaration of removal
  1. Report on final handling of ionizing radiation power plant or radioactive substances;
  2. Report on the measurement of radiation exposure or radioactive substance contamination; and/or
  3. Ionizing radiation source facility decommissioning implementation report.

Subsector II

Declaration of removal
  1. Results of the decommissioning of nuclear installation;
  2. Results of the handling of radioactive waste;
  3. Environmental permit implementation report in accordance with environmental protection and management regulations; and
  4. Results of measurement of exposure to radiation and radioactive contamination on and off the site.

Subsector III

Declaration of removal

4. Licensing

The licenses, certificates of standards compliance, approvals or declarations stated above must be applied for via the integrated OSS-RBA system introduced by GR 5/2021, and will be subject to Bapeten approval. A license fee is also payable by the applicant.

The validity period, required steps and the application review process will vary according to the license applied for (e.g., between 36 and 48 months for a nuclear installation-related license, counting from receipt of correct and complete application documents; in practice, however, the process is likely to be more protracted than suggested by Reg. 1/2022).

  1. ABNR Commentary

Reg. 1/2022 functions as an implementing regulation for licensing in the nuclear sector following the introduction of risk-based licensing by GR 5/2021. Given the understandably heavy regulation of the nuclear sector, the framework provided by Reg. 1/2022 encompasses a complex system of checks and monitoring requirements that apply before, during and after engagement in the sector.

Reg. 1/2022 therefore finds itself walking a fine line between the government’s reasonable concern for nuclear safety-related considerations on the one hand and its strong motivation, encapsulated in GR 5/2021, to facilitate and de-regulate business on the other.

By partnerMr. Ayik Candrawulan Gunadi(agunadi@abnrlaw.com) and associateMr. Kenny Adrianus (kadrianus@abnrlaw.com).

This ABNRNewsand its contents are intended solely to provide a general overview, for informational purposes, of selected recent developments in Indonesian law. They do not constitute legal advice and should not be relied upon as such. Accordingly, ABNR accepts no liability of any kind in respect of any statement, opinion, view, error, or omission that may be contained in this legal update. In all circumstances, you are strongly advised to consult a licensed Indonesian legal practitioner before taking any action that could adversely affect your rights and obligations under Indonesian law.

[1] Peraturan Kepala Badan Pengawas Tenaga Nuklir Nomor 1 Tahun 2022 tentang Penatalaksanaan Perizinan Berusaha Berbasis Risiko Sektor Ketenaganukliran

[2] Peraturan Pemerintah Nomor 5 Tahun 2021 tentang Penyelenggaraan Perizinan Berusaha Berbasis Risiko

[3] Peraturan Kepala Badan Pengawas Tenaga Nuklir Nomor 6 Tahun 2018 tentang Tata Cara Perizinan Berusaha Terintegrasi Secara Elektronik Sektor Ketenaganukliran

[4] Reg 1/2022 defines consumer goods as equipment or items known to contain Radioactive Substances or which are a result of activation or equipment or articles that produce ionizing radiation, the use of which in the community does not require supervision.

[5] Currently stipulated under Appendix II – Nuclear Sector of GR 5/2021

[6] Currently stipulated under Head of BAPETEN Regulation No 3 of 2021 / Peraturan Kepala Badan Pengawas Tenaga Nuklir Nomor 3 Tahun 2021 tentang Standar Kegiatan Usaha dan Standar Produk pada Penyelenggaraan Perizinan Berusaha Berbasis Risiko Sektor Ketenaganukliran

[7] To be stipulated specifically under Head of BAPETEN Regulation

[8] To be stipulated specifically under Head of BAPETEN Regulation

[9] To be provided for in more detail by a separate Bapeten Regulation