Indonesia: Proposed deregulation of environmental protections in Omnibus Bill on Job Creation may have severe environmental & human rights repercussions, investors warn
"Open letter on the Omnibus Bill on Job Creation", October 2020
[...] [T]he undersigned global investors, are writing to express our concern over the proposed deregulation of environmental protections in the Omnibus Bill on Job Creation. While we appreciate the Indonesian government’s efforts to align regulations and address bottlenecks to attract more foreign direct investment, we are concerned by certain modifications which could be potentially detrimental from an environment, social, and governance perspective if implemented.
Specifically, we fear that proposed changes to the permitting framework, environmental compliance monitoring, public consultation and sanctioning systems will have severe environmental, human rights and labor-related repercussions that introduce significant uncertainty and could impact the attractiveness of Indonesian markets.
[...]
We urge the government of Indonesia to:
- Preserve and advance legislation that supports the conservation of forests and peatlands
- Retain and strengthen legislation that upholds human rights and the customary land rights of Indigenous peoples, honoring the principle of Free, Prior and Informed Consent
- Hold proper consultations with environmental and civil society groups and investors on the Omnibus Bill on Job Creation before further progressing its implementation
- Retain a long-term view when developing plans for economic recovery from Covid-19, ensuring social and environmental considerations are central to Indonesia’s recovery