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Since the early 1960's, the Petroleum and Refinery Industry have made significant investments in environmental abatement contro I and treatni en t systems, particularly with respect to hazardous wastes such as catalysts and sludges, which this paper focuses on.In Indonesia, the Government has recognized the need for environmental protection within the Refinery Industry and has introduced regulations which, in a first phase of implementation, rely on voluntary compliance.Indonesia's environmental regulations regarding hazardous and toxic waste management incorporate many features of the USEPA's regulations concerning the same wastestreams.The Government's (BAPEDAL) Regulation Number 19, 1994, Regarding Hazardous and Toxic Waste Management classifies the following :- residues of oil emulsions and sludges resulting from the exploration, production, and m cnntenmce of production facilities as hazardous under Waste Code D220, and- catalysts, aclivated carbon, and sludges resulting from Petroleum refining as hazardous under Waste Code D221.The management of these two wastestreams is of particular importance to Refinery Managers because of the costs of treatment and disposal, and costs associated with remediation measures in site specific cases.To summarize the implications of existing environmental programs, and future investments in pollution control technology and systems, wc find that :- waste treatment is expensive, and- waste minimization is cost effective.