[Jakarta, 15 April 2020] The Job Creation Bill, which is currently being forced onto the legislative agenda by the Government and the House of Representatives (DPR), risks becoming a blunder for Indonesia’s economic growth and could undermine the country’s climate commitments.
“The bill lacks a high level of urgency, as it is not relevant to the complexity of Indonesia’s current economic and social conditions. Therefore, its deliberation should be halted. Reforming governance in the natural resource sector through the enactment of a Basic Law on Natural Resource and Environmental Management, along with strengthening the Corruption Eradication Commission (KPK), should instead be the priority for both the Government and the DPR to improve the national economy. This is especially important given that Indonesia’s economic model remains heavily dependent on natural resource extraction and lacks innovation,” said M. Teguh Surya, Executive Director of Yayasan Madani Berkelanjutan, during an online discussion titled “The Job Creation Bill and Risks to Indonesia’s Forests and Climate” on 15 April 2020.
“From an investment perspective, Indonesia ranks third in Asia as one of the most attractive destinations. However, corruption remains the number one obstacle—this is the root problem that must be addressed first. A concrete step that the government and legislators can take is to follow up on the results of the regulatory harmonization study on natural resource governance reform prepared by the KPK in 2018. The findings of that study could then be formulated into an Omnibus Law on Natural Resource Management. This is far more urgent than the Job Creation Bill, as there are overlapping regulations across 26 existing laws,” Teguh added.
Meanwhile, M. Arief Virgy, Insight Analyst at Yayasan Madani Berkelanjutan, stated that the Job Creation Bill poses a serious risk to Indonesia’s climate commitments, particularly in the forestry sector.
“Based on Madani’s analysis, there are five key findings explaining why the Job Creation Bill could hinder and even derail Indonesia’s climate commitments. If the provisions that weaken protections for natural forests and the environment are implemented, the risk of natural forest loss will accelerate. First, five provinces are at risk of losing all of their remaining natural forests due to deforestation. Second, four provinces face the threat of natural forest loss outside the PIPPIB (the moratorium area for primary forests and peatlands). Third, the deforestation quota of 3.25 million hectares—which must not be exceeded to meet the forestry sector’s Nationally Determined Contribution (NDC) target—will be surpassed by 2025. Fourth, the opportunity to save 3.4 million hectares of natural forest already located within oil palm plantations will be lost. Fifth, natural forest cover in 45 watersheds in West Papua is projected to decline to just 0–20 percent by 2058 if PIAPS and PIPPIB areas fail to receive effective protection,” explained M. Arief Virgy.
“The Job Creation Bill risks weakening forest and environmental protection regulations. Considering that existing regulations are already insufficient and frequently violated, weakening environmental safeguards in the name of boosting investment is an economic growth blunder and will increase disaster risks,” M. Arief Virgy added.
Based on these findings, the DPR should halt deliberations on the Job Creation Bill. This discussion, organized by Yayasan Madani Berkelanjutan, was not part of an official public consultation by the DPR, but rather an effort by civil society to remain critical of policies issued by the government.
Contacts:
M. Teguh Surya
Executive Director, Yayasan Madani Berkelanjutan
Phone: +62 812 9480 1453
Email: teguh@madaniberkelanjutan.idM. Arief Virgy
Insight Analyst, Yayasan Madani Berkelanjutan
Phone: +62 859 2614 0003
Email: virgy@madaniberkelanjutan.idLuluk Uliyah
Senior Media Communication, Yayasan Madani Berkelanjutan
Phone: +62 815 1986 8887
Email: luluk@madaniberkelanjutan.id
