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Indonesia is entering a new era of environmental governance. As environmental, social, and governance (ESG) expectations continue to rise globally, governments are strengthening regulations to ensure businesses operate responsibly and minimise environmental impacts. In Indonesia, this commitment is reflected in the issuance of Minister of Environment/Environmental Control Agency Regulation (Permen LH/BPLH) No. 6 of 2026 concerning Environmental Supervision and Administrative Sanctions. The regulation represents more than a routine legislative update. It marks a significant shift towards a risk-based, transparent, and more enforceable environmental compliance system, reinforcing the government's ability to monitor business activities and respond more effectively to environmental violations. For organisations operating in Indonesia, particularly those in environmentally intensive industries, understanding this regulation is essential not only to remain compliant but also to strengthen long-term business resilience and ESG performance. What is Permen LH/BPLH No. 6 of 2026? Permen LH/BPLH No. 6 of 2026 is a ministerial regulation issued by the Ministry of Environment and the Environmental Control Agency (BPLH) that establishes procedures for environmental supervision and the implementation of administrative sanctions. The regulation provides a comprehensive framework governing how environmental compliance is monitored, how inspections are conducted, and how administrative enforcement measures are applied when businesses fail to meet their environmental obligations. Unlike previous regulations, this framework introduces a more structured and systematic supervision process by adopting a risk-based approach, enabling regulatory authorities to focus resources on activities that present the greatest environmental risks. The regulation also clarifies the respective responsibilities of the central government and regional authorities, ensuring greater consistency in environmental oversight throughout Indonesia. Ultimately, the regulation aims to improve environmental protection while providing greater legal certainty for both regulators and businesses. Permen LH/BPLH No. 6 of 2026 was therefore introduced to: strengthen environmental law enforcement; improve coordination between central and regional governments; establish a risk-based environmental supervision system; enhance legal certainty for businesses; improve consistency in inspection procedures; standardise the implementation of administrative sanctions; and ensure environmental supervision supports Indonesia's broader sustainable development agenda. The regulation also reflects Indonesia's growing commitment to international sustainability expectations, where regulators, investors, financial institutions, and global supply chains increasingly expect businesses to demonstrate effective environmental governance rather than merely obtaining permits. How Does This Regulation Fit into Indonesia's Environmental Regulatory Journey? The issuance of Permen LH/BPLH No. 6 of 2026 is part of a broader regulatory transformation that has taken place over the last several years. 2021 - Government Regulation No. 22 of 2021 introduced major reforms to environmental protection and management under the Job Creation Law. It replaced traditional environmental permits with Environmental Approval and integrated environmental compliance into Indonesia's new business licensing system. 2024 - The Ministry issued Permen LHK No. 14 of 2024, providing guidance on environmental supervision and administrative sanctions. While this regulation established important supervisory mechanisms, implementation revealed opportunities to improve consistency, inspection procedures, and coordination among authorities. 2025 - The Government introduced Government Regulation No. 28 of 2025, further strengthening Indonesia's Risk-Based Business Licensing system and requiring greater alignment across sectoral regulations. 2026 - To support these broader reforms, the Ministry issued Permen LH/BPLH No. 6 of 2026, replacing the previous ministerial regulation with a more comprehensive supervision and enforcement framework. Timeline of Indonesia's Environmental Supervision Reform Year Regulatory Milestone 2021 Government Regulation No. 22 of 2021 establishes Indonesia's modern environmental protection framework. 2021–2024 Environmental Approval becomes integrated into the OSS Risk-Based Licensing System. 2024 Permen LHK No. 14 of 2024 introduces procedures for environmental supervision and administrative sanctions. 2025 Government Regulation No. 28 of 2025 strengthens Indonesia's Risk-Based Business Licensing framework. 25 May 2026 Permen LH/BPLH No. 6 of 2026 is officially enacted. 15 June 2026 The regulation enters into force nationwide. Key Highlights of Permen LH/BPLH No. 6 of 2026 1. Risk-Based Environmental Supervision Environmental inspections are now prioritised based on: Business risk level Environmental complexity Compliance history PROPER performance Potential environmental impacts Companies with higher risks or repeated non-compliance are more likely to receive inspections. 2. Stronger Government Authority The Ministry may take over supervision from regional governments if: Serious environmental violations occur Local governments fail to conduct supervision Environmental damage exceeds regional capacity Major legal violations are identified This significantly strengthens central government intervention. 3. Two Types of Environmental Inspections The regulation introduces two supervision mechanisms: Regular Supervision Site inspections Virtual inspections Report reviews Incidental Supervision Public complaints Suspected violations Reports from industrial estate management Direct assignment by the Minister 4. Expanded Powers for Environmental Inspectors Environmental inspectors (PPLH) are authorised to: Enter facilities Review documents Collect environmental samples Take photographs and videos Inspect equipment Stop ongoing environmental violations immediately when necessary 5. Clearer Administrative Sanctions Administrative sanctions now include: Written Warning Government Coercive Measures Administrative Fine Suspension of Business Licence Revocation of Business Licence Administrative fines may reach up to IDR 3 billion, depending on the severity and type of violation. What's New Compared with Permen LHK No. 14 of 2024? Aspect Permen LHK No. 14/2024 Permen LH/BPLH No. 6/2026 Regulatory approach Environmental supervision More comprehensive supervision and enforcement Inspection approach Conventional Risk-based inspection planning Central Government intervention Limited Stronger takeover authority for serious violations Inspection method Mostly field inspections Field inspections, virtual inspections, and document review OSS integration Limited Mandatory integration with OSS Inspector authority General Expanded investigative authority Administrative sanctions Available More structured with clearer enforcement process Environmental evidence Less detailed Standardised reporting and evidence collection Which Industries Will Be Most Affected? The regulation applies broadly to businesses requiring environmental approvals. Industries with significant environmental impacts should pay particular attention, including: Palm Oil & Agriculture Mining & Minerals Forestry & Timber Manufacturing Food & Beverage Chemical Industry Pulp & Paper Energy & Power Generation Oil & Gas Industrial Estates Waste Management Infrastructure & Construction Logistics & Ports Companies managing wastewater, emissions, hazardous waste (B3), biodiversity, peatlands, mangroves, coral reefs, or other sensitive environmental aspects will likely face greater scrutiny How Should Companies Prepare? Businesses should move beyond minimum regulatory compliance and establish robust environmental governance systems. Key actions include: Review Environmental Permits Ensure Environmental Approval, Business Licences, and technical approvals remain valid and reflect current operations. Conduct Compliance Gap Assessments Evaluate compliance against legal obligations, permit conditions, and environmental management plans (AMDAL, UKL-UPL, RKL-RPL). Strengthen Environmental Monitoring Regularly monitor wastewater, emissions, hazardous waste, biodiversity, and other environmental performance indicators. Improve Documentation Maintain complete, organised, and inspection-ready environmental records. Prepare for Environmental Inspections Develop internal procedures, conduct mock inspections, and ensure personnel are prepared for both scheduled and unannounced inspections. Permen LH/BPLH No. 6 of 2026 marks a significant shift in Indonesia's environmental enforcement framework. By introducing risk-based supervision, stronger inspection powers, enhanced OSS integration, and clearer administrative sanctions, the regulation encourages businesses to adopt a more proactive and systematic approach to environmental compliance. For organisations operating in environmentally sensitive sectors, early preparation is essential not only to avoid regulatory sanctions but also to enhance operational resilience, improve ESG performance, and build long-term stakeholder trust. Reference : JDIH KLH/BPLH

Press Release - GSDC 2026 Tangerang, Indonesia – 25 June 2026 – Peterson Solutions Indonesia reaffirmed its commitment to advancing sustainable development through its participation in the Global Sustainable Development Congress (GSDC) 2026, held from 22–25 June 2026 at the Indonesia Convention Exhibition (ICE BSD), Tangerang. Throughout the four-day congress, Peterson Solutions Indonesia participated as an exhibitor, hosting a dedicated booth that served as a platform for discussion, collaboration, and networking with stakeholders from industry, academia, government, international institutions, and global organisations. The company's presence reflected its ongoing commitment to expanding strategic partnerships that support the implementation of more sustainable and resilient business practices. The Global Sustainable Development Congress is an international forum that brings together global leaders to exchange ideas, innovative solutions, and collaborative initiatives aimed at accelerating the achievement of the Sustainable Development Goals (SDGs). The event featured a comprehensive programme of conferences, panel discussions, workshops, and cross-sector networking sessions. Four Days of Collaboration and Knowledge Exchange Day One – 22 June 2026 The congress officially opened with keynote sessions featuring global leaders from government, industry, academia, and international organisations. Discussions highlighted the importance of global collaboration, innovation, and sustainable investment as key drivers for achieving the SDGs. On the opening day, Peterson Solutions Indonesia welcomed delegates to its exhibition booth to discuss sustainability solutions and sustainable supply chain development. Day Two – 23 June 2026 The second day marked a key milestone for Peterson Solutions Indonesia as Romain Pradier, Senior Program Manager & Sustainability Consultant, joined the congress as a speaker in the session entitled "Building Resilient Sustainable Supply Chains." During his presentation, Romain emphasised the importance of building resilient supply chains by strengthening supplier capabilities, enhancing data transparency, and implementing credible verification and certification processes. He also highlighted that resilient supply chains should be built upon three key pillars environmental resilience, economic resilience, and social resilience to generate long-term value for businesses while creating positive impacts for people and the environment. In addition to the speaking session, Peterson Solutions Indonesia's booth continued to serve as a hub for discussions on ESG strategy, supply chain resilience, responsible sourcing, and opportunities for collaboration with organisations committed to sustainability. Day Three – 24 June 2026 The third day focused on panel discussions, workshops, and business networking sessions exploring sustainability implementation, green innovation, sustainable finance, and stronger collaboration between the public and private sectors. Peterson Solutions Indonesia continued to engage with prospective strategic partners while showcasing its sustainability consulting services to visitors. Day Four – 25 June 2026 The final day of the congress provided an opportunity to strengthen the relationships established throughout the event. Closing sessions reinforced the importance of collective action and cross-sector collaboration in driving sustainable development. Peterson Solutions Indonesia concluded its participation with optimism about future partnerships that will contribute to sustainable business transformation in Indonesia and beyond. Strengthening Collaboration for a More Sustainable Future Peterson Solutions Indonesia's participation in the Global Sustainable Development Congress 2026 reflects the company's commitment to being a trusted partner in supporting sustainability transformation across industries. Through its presence as an exhibitor, active engagement in international discussions, and thought leadership demonstrated by Romain Pradier's presentation, Peterson Solutions Indonesia aims to strengthen collaboration with stakeholders in building more resilient, transparent, and sustainable supply chains that create lasting value for businesses, communities, and the environment. About Peterson Solutions Indonesia Peterson Solutions Indonesia is a sustainability consulting company that supports organisations in implementing Environmental, Social, and Governance (ESG) strategies, sustainable supply chain management, decarbonisation, certification, risk management, and other strategic solutions that help businesses achieve responsible and sustainable growth.

Based on Minister of Law Regulation No. 49 of 2025 | Deadline : 30 June 2026 Indonesia has taken a significant step in tightening corporate compliance. Through the Ministry of Law, the Government has issued Minister of Law Regulation (Permenkum) No. 49 of 2025, which came into effect on 17 December 2025. This regulation replaces Minister of Law Regulation No. 21 of 2021 and introduces fundamental changes to the annual reporting obligations of all Limited Liability Companies (PT) and Foreign Investment Limited Liability Companies (PT PMA) operating in Indonesia. For business operators and foreign investors, this represents a systemic change with a direct impact on the continuity of company operations. 1. What Is an Annual Report? An Annual Report is an official document that must be prepared by the Board of Directors of every limited liability company, containing a summary of performance, financial condition, and management’s accountability for the company’s operations during one financial year. Key Components of the Annual Report: • Audited Financial Statements (Balance Sheet, Profit and Loss Statement, Cash Flow Statement) • Report by the Board of Directors on the running of the company • Report by the Board of Commissioners on the oversight of management • Disclosure of Beneficial Owner information • Business plans and future projections 2. Latest Update from the Indonesian Government The Government of Indonesia officially enacted Permenkum No. 49 of 2025 on 17 December 2025. This regulation revokes and replaces Permenkum 21/2021 Annual Reporting Is Now Mandatory in Digital Form The most crucial change is that the Annual Report is no longer sufficient to be kept internally. Every PT and PT PMA must now upload their annual report to the Government’s SABH (Legal Entity Administration System) or AHU Online system. This applies without exception, including for companies that have not made any changes during the financial year. 3. Comparison of Old Rules vs New Rules Aspect Before (Permenkum 21/2021) After (Permenkum 49/2025) Annual Report Not required to be reported to the system MUST be uploaded to SABH/AHU Online Annual General Meeting of Shareholders (RUPS) Internal record sufficient Must be notarised and reported Beneficial Owner Voluntary Mandatory disclosure, with a dedicated document Sanctions No automatic block Automatic SABH access block Corporate changes Single registration pathway Two pathways: Approval & Notification 4. Timeline and Milestones Peterson Solutions Indonesia, as an experienced consultant in analysis and report preparation, is ready to support your company end-to-end in completing the analysis and report in line with the agreed timeline. With the combination of Peterson Solutions Indonesia’s technical expertise and active collaboration with the client’s team, this process is designed to be efficient, transparent, and to produce a high-quality, timely report ensuring your company receives accurate analysis that can be implemented immediately. 5. Consequences of Late or Non-Reporting Sanctions for non-compliance under Permenkum 49/2025 are immediate, automatic, and have a significant operational impact. This is not merely an administrative fine — it is a freeze on the company’s ability to operate legally. SABH/AHU Online Access Block The most critical consequence is the automatic blocking of access to the SABH system. When SABH access is blocked, the company will be unable to carry out: • Amendments to the Articles of Association (name, domicile, capital, etc.) • Changes to or additions of Directors and Commissioners • Changes to the shareholder structure • Company restructuring processes • Filing for company dissolution • All other corporate changes In other words, your company becomes legally frozen. You cannot make any corporate decisions until compliance is restored. Ready to start a timely, accurate, and professional analysis and annual report for your company? Peterson Solutions Indonesia is ready to be your partner please schedule a consultation session with our team of experts! 📞 Telp: +62 21 2270 8913 📧 Email: enurhadi@onepeterson.com / marketing-indonesia@onepeterson.com🌐 Web: petersonindonesia.com Let’s make this a high-quality annual report before the 30 June deadline. Discuss your company’s needs with Peterson Solutions Indonesia today! Legal References Minister of Law Regulation No. 49 of 2025 | Law No. 40 of 2007 on Limited Liability Companies | BKPM Regulation No. 5 of 2025 | Government Regulation No. 5 of 2021 (OSS-RBA)

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The water footprint quantifies the quantity of water utilized to generate each of the products and services we consume. It can be quantified for a specific operation, like as cultivating rice, for a product, such as a pair of jeans, for the gasoline we put in our cars, or for a multinational corporation as a whole. Services Water Footprinting The water footprint quantifies the quantity of water utilized to generate each of the products and services we consume. It can be quantified for a specific operation, like as cultivating rice, for a product, such as a pair of jeans, for the gasoline we put in our cars, or for a multinational corporation as a whole. The water footprint can also reveal how much water a country – or the world as a whole – consumes from a certain river basin or aquifer. The water footprint enables us to provide answers to a variety of concerns posed by businesses, governments, and individuals. For instance: Where does my company's activities or supply chain rely on water? How effectively do rules safeguard our water resources? How reliable are our food and energy sources? Can I lower my personal water footprint and contribute to the management of water for both humans and nature? Depending on the question, the water footprint can be quantified in cubic metres per tonne of production, per hectare of agriculture, per unit of currency, as well as other functional units. The water footprint enables us to comprehend how our scarce freshwater resources are being consumed and contaminated. The influence varies on where and when the water is extracted. If it originates from a region where water is already scarce, the repercussions may be severe and demand intervention. There are three components to the water footprint: green, blue, and gray. Together, these components provide a complete picture of water usage by identifying the source of water consumed, whether as precipitation/soil moisture, surface water, or groundwater, and the volume of fresh water necessary for the absorption of contaminants. Direct and indirect usage of water The water footprint considers both the direct and indirect water use of a process, product, or industry, as well as water consumption and pollution along the entire production cycle, from the supply chain to the final consumer. It is also feasible to use the water footprint to calculate the quantity of water needed to generate all the goods and services used by an individual, a community, a nation, or the whole human population. This also comprises the direct water footprint, which is the amount of water used directly by the individual(s), and the indirect water footprint, which is the sum of the water footprints of all consumed products.

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