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SVLK, Job Creation Bill, and Revision of Mineral and Coal Law Madani’s Update Report, April- May 2020 Edition

Through Regulation No. 45 Year 2020, the Minister of Trade revoked the controversial Regulation No. 15 Year 2020 on Export Requirements for Forestry Industry Products that had removed the obligation to attach V-Legal, a document resulting from the Timber Legality Verification System (SVLK), for export of certain Indonesian timber products.

Cited as a measure to boost Indonesia’s export amidst economic slowdown due to COVID-19 pandemic, the previous regulation would have taken effect on May 27 2020 but is now countermanded. It means that all exports of forestry products still have to attach a V-Legal document.

Meanwhile, Omnibus Law/Job Creation Bill Discussion Continues. The Parliament will continue discussing one of the most controversial legislations in Indonesia, the Omnibus Law/Job Creation Bill despite heavy criticisms from labour organizations, academicians, and non-governmental organizations due to the Bill’s focus on boosting investment at the expense of labours and the environment, including forests. Civil society organizations have urged the Parliament to suspend the Bill’s discussion due to COVID-19 pandemic that hinders effective public participation.

Madani’s study found that if the Bill were enacted, which risks undermining forest protection, Indonesia would fall short of achieving the climate commitment in 2025.

Updates on Mineral and Coal Revision Bill. On May 12, 2020, the Parliament and the Government agreed to sign revisions of Mineral and Coal Act No. 4/2009 into law. In addition to the lack of public participation, civil society rejected the Bill because many articles were problematic. The Revised Law provide much privilege to 7 large mining companies which contracts (PKP2B) will have expired by 2025.

For more information, download the updated at the below.

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