The implementation of Indonesia’s Job Creation Law (Undang-Undang Cipta Kerja) has fundamentally altered the nation’s approach to development, notably repositioning environmental interests from their erstwhile paramount status. A key manifestation of this shift is the controversial replacement of the traditional ‘Environmental Permit’ (Izin Lingkungan) with a new ‘Environmental Approval’ (Persetujuan Lingkungan). Furthermore, the regulation now permits the substitution of core zones or designated conservation areas to facilitate National Strategic Projects (PSN).
Mas Achmad Santosa, CEO of the Indonesia Ocean Justice Initiative (IOJI), articulated his concerns following the launch of his book, “New Legal Paradigm to Address Climate Crisis,” in Jakarta on Thursday (4/12). “There are indeed several regulations that now provide exceptions for National Strategic Projects. The commander is no longer ecology; it is now the PSN,” Santosa remarked, highlighting a significant reordering of priorities. He warned that if this trend persists, it will inevitably lead to widespread ecological disaster.
To avert such a crisis, Santosa, affectionately known as Ota, advocates for a groundbreaking shift in Indonesian environmental law. He proposes a new legal paradigm that firmly places ecological interests at the pinnacle of all development considerations—a principle he terms ecological primacy. This principle directly challenges the recent permit transformation, as Ota contends that the switch from Environmental Permit to Environmental Approval effectively subordinates ecological concerns to the pursuit of investment.
Under the new framework, after initial environmental compliance is ensured, the Ministry of Environment (KLH) transfers the permitting authority to institutions responsible for issuing ‘Business Permits’ (Perizinan Berusaha). A critical flaw in this system, according to Ota, emerges if environmental violations occur. The KLH, despite its mandate, is no longer empowered to revoke the environmental approval; that authority now rests with the business permit-issuing body. “The bargaining power of officials issuing business permits is considerably weaker than that of investors. They simply don’t dare to revoke an investment,” he stated, underscoring a potential loophole for environmental accountability.
KLH States Change Does Not Reduce Substance
In contrast to these concerns, Deputy Minister of Environment Diaz Hendropriyono previously offered an alternative perspective on the terminological change. He asserted that the alteration does not diminish the substance, legal force, or essential nature of the instruments designed for controlling environmental impact. Diaz emphasized that the ‘Environmental Approval’ can only be granted after a proposed activity is rigorously deemed environmentally feasible.
As quoted from the Constitutional Court’s website, Diaz clarified, “Environmental approval can only be issued after the activity plan is declared environmentally sound through a stringent and scientifically-based Environmental Impact Analysis (AMDAL) or Environmental Management and Monitoring Efforts (UKL-UPL) process.” He further affirmed that without adherence to these vital environmental aspects, business permits simply cannot be issued, suggesting that robust safeguards remain in place despite the procedural changes.
Summary
Undang-Undang Cipta Kerja Indonesia mengubah pendekatan pembangunan dengan memposisikan kembali kepentingan lingkungan. Perubahan krusial adalah penggantian Izin Lingkungan menjadi Persetujuan Lingkungan, serta izin substitusi kawasan konservasi untuk Proyek Strategis Nasional (PSN). CEO IOJI, Mas Achmad Santosa, mengkritik bahwa PSN kini mengungguli ekologi, berpotensi menyebabkan bencana ekologi. Ia mengusulkan paradigma hukum baru bernama ‘ecological primacy‘ untuk memprioritaskan kepentingan ekologi di atas investasi.
Santosa menyoroti bahwa dalam kerangka baru, KLH tidak berwenang mencabut persetujuan lingkungan, kewenangan itu beralih ke lembaga penerbit Perizinan Berusaha yang dinilai lebih lemah terhadap investor. Namun, Wakil Menteri Lingkungan Hidup Diaz Hendropriyono menyatakan bahwa perubahan terminologi ini tidak mengurangi substansi atau kekuatan hukum instrumen pengendalian dampak lingkungan. Diaz menegaskan Persetujuan Lingkungan hanya dapat diberikan setelah kegiatan dinyatakan layak lingkungan melalui proses AMDAL yang ketat. Tanpa kepatuhan aspek lingkungan, izin usaha tidak dapat dikeluarkan.
