Page 69 - e-KLIPING KETENAGAKERJAAN 25 FEBRUARI 2020

stringent Environment Impact Analysis and building permit requirements would
result in unsustainable growth.

Businesses, however, have welcomed the bill due to the focus on streamlining
business licenses, making Indonesia more open to foreign investment and a more
flexible labor market.

The omnibus bill on job creation would amend 73 laws and consists of 15 chapters
and 174 articles. The government and businesspeople consider Indonesia to be
over-regulated with a total of 43,511 central government regulations as well as
ministerial-, agency- and regional-level rules.

The landmark bill will affect every single Indonesian as it covers a wide range of
issues from business and education to halal certification and regional government
powers. Below is The Jakarta Post's guide to the 1,028-page omnibus bill on job
creation.

Made with Flourish

Relaxation of environment standards

The omnibus bill on job creation significantly relaxes environmental standards for
business activities that require an environmental impact analysis (Amdal). The bill
amends Article 23 in Law 32/2009 on environmental protection and management
that lays out the criteria that businesses must follow to request an Amdal prior to
operation.

The criteria includes changes in the natural landscape, resource exploitation,
pollution, socio-cultural impact, conservation and cultural heritage, security risks,
plants and animals, among others.

The omnibus bill stipulates that only businesses that "have important effects on the
environment, social, economic and culture" will require an Amdal. Details on this
stipulation will be regulated in a Government Regulation (PP).

Furthermore, the people who live in surrounding areas of business activities that
require an Amdal would no longer be able to appeal the document, according to
amendments to Article 26 of Law 32/2009. Environmental experts will also no longer
be involved in environmental impact analysis, the omnibus bill reveals.

The Amdal assessment committees, which comprise the environment agency,
related technical institutions, environment and technical experts, environmental
organizations and public representatives, are revoked in the draft bill.

Revocation of building permits

Page 68 of 125.