Update on Indonesia's Job-Creation Law for the Natural Resources Sector
In the wake of the issuance of Law No. 11 of 2020 on Job Creation (“Job-Creation Law”), the Indonesian Government has issued a series of implementing regulations that apply to the new framework.
In terms of the natural resources sector, the Job-Creation Law amends various laws that apply to the areas of forestry, agriculture and maritime affairs and fisheries, specifically:
- Law No. 41 of 1999 on Forestry (“Law 41/1999”);
- Law No. 18 of 2013 on the Prevention and Eradication of Forest Destruction (“Law 18/2013”);
- Law No. 39 of 2014 on Plantations (“Law 39/2014”);
- Law No. 29 of 2000 on Plant Variety Protection (“Law 29/2000”);
- Law No. 22 of 2019 on Sustainable Agricultural Cultivation Systems (“Law 22/2019”);
- Law No. 19 of 2013 on the Protection and Empowerment of Farmers (“Law 19/2013”);
- Law No. 13 of 2010 on Horticulture (“Law 13/2010”);
- Law No. 18 of 2009 on Animal Husbandry and Health, as amended by Law No. 41 of 2014 (“Law 18/2009”);
- Law No. 31 of 2004 on Fisheries (“Law 31/2004”); and
- Law No. 32 of 2014 on Maritime Affairs (“Law 32/2014”).
As a consequence of the substantial changes introduced under the new framework of the Job-Creation Law, the following implementing regulations to that address these changes as they apply to the natural resources sector (“Implementing Regulations”) have now been introduced:
- Regulation of the Government No. 23 of 2021 on the Organization of Forestry (“Regulation 23/2021”);
- Regulation of the Government No. 26 of 2021 on the Organization of the Agricultural Sector (“Regulation 26/2021”); and
- Regulation of the Government No. 27 of 2021 on the Organization of Maritime and Fisheries Sector (“Regulation 27/2021”).
In order to analyze these new legal frameworks, this edition of Indonesian Law Digest (“ILD”) offers a comprehensive summary of the Implementing Regulations. For further reading, please kindly see on the Indonesian legal center “Hukum Online” on the original website is in this link : Job-Creation Law Updates and you will have to be a registered as member
In line with the spirit of the Job-Creation Law, the new Implementing Regulations offer a more relaxed and convenient regime as a part of efforts aimed at attracting investors to the country, specifically within the natural resources sector. For example, under the new legal frameworks, land procurement can now be undertaken by private-sector actors. Even better, any uses of forest areas that do not involve forestry activities and that were not granted any permits prior to the issuance of the Job-Creation Law can now be granted official forest-area approvals. Business actors also no longer have to worry when felling any trees within the context of land clearing. Instead, under the new regime, business actors will be able to pay forest resource provision (Provisi Sumber Daya Hutan/PSDH) and/or reforestation funds (Dana Reboisasi/DR).
However, as well as the various conveniences provided under the new legal frameworks, business actors are still required to comply with a number of strict obligations and/or stipulated standards. In this context, it is important to note that increasing worker protections and welfare; the facilitation, empowerment and protection of micro- and small-scale enterprises and cooperatives, as well as the acceleration of nationally strategic projects are also enshrined under the Job-Creation Law.
Source : Indonesian legal center “Hukum Online”.
