Environmental Management Act 1997 (No. 23 of 1997).

This Act aims at creating an environmentally sustainable development through means of an environmental planning policy, and the rational exploitation, development, maintenance, restoration, supervision and control of the environment.
The Act is divided into the following Chapters: General Provisions (I); Principles, Objective, and Target (II); Community Rights, Obligations and Role (III); Environmental Management Authority (IV); Preservation of Environmental Functions (V); Environmental Compliance Requirements (VI); Environmental Dispute Settlement (VII); Investigation (VIII); Criminal Provisions (IX); Transitional Provisions (X); Closing Provisions (XI).
The natural resources shall be controlled by the State, the arrangements thereof being determined by the Government. To this end the latter shall: (a) regulate and develop policies in the scheme of environmental management; (b) regulate the supply, allocation, use and management of the environment, and the re-use of natural resources, including genetic resources; (c) regulate legal actions and legal relations between persons and/or other legal subjects as well as legal action regarding natural resources and artificial resources, including genetic resources; (d) control activities which have social impact; (e) develop a funding system for efforts to preserve environmental functions. Further provisions establish the principles and criteria that the Government shall take into account in exercising its functions and stress the importance of the collaboration of local authorities in assisting the Central Government. Particular attention should be paid also to the importance given by the Act to the role that communities should play in the environmental management. Every business and/or activity which should have an impact on the environment is subject to an environmental impact analysis to obtain a licence to conduct such business or activity. In issuing a licence the following should be taken into account: (a) spatial management plans; (b) community opinion; (c) considerations and recommendations of authorized officials who are involved with such business and/or activity. Further provisions concern the environmental dispute settlement either out of Court or through the Court, as well as investigation powers of the Republic of Indonesia National Police Investigators and offences and penalties.