Administrative and Environmental Law Review (Jun 2022)

Investment Licensing and Environmental Sustainability in the Perspective of Law Number 11 The Year 2020 Concerning Job Creation

  • Rahmat Saputra,
  • Rama Dhianty

DOI
https://doi.org/10.25041/aelr.v3i1.2472
Journal volume & issue
Vol. 3, no. 1
pp. 25 – 38

Abstract

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This article examines the impact of regulatory changes on investment activities and environmental sustainability in Indonesia, particularly based on the Law No. 11 of 2020 concerning Job Creation, which utilizes the omnibus law method. This law represents a significant overhaul of the investment licensing framework and introduces substantial amendments to environmental regulations, notably revising, omitting, and repealing several provisions of Law No. 32 of 2009 concerning Environmental Protection and Management (PPLH). The primary objectives of this research are to analyze the new investment licensing arrangements under Law No. 11 of 2020 and to assess the implications for environmental sustainability following its enactment. Employing a normative legal research methodology, this research utilizes legal, historical, and conceptual approaches to address its aims. Findings suggest that the regulatory reforms introduced by Law No. 11 of 2020 could substantially influence investment patterns within the country. Investors generally seek regulations that are clear, consistent, and non-conflicting; however, the reduction in community involvement in the Environmental Impact Assessment (AMDAL) process, as stipulated by the amendment to Article 26 of Law No. 32 of 2009 by the Job Creation Act, raises concerns about the effectiveness of environmental governance. Despite these changes, the sustainability assessment criteria in Law No. 11 of 2020 and its derivatives ostensibly remain aligned with existing environmental prevention instruments, covering planning, utilization, control, maintenance, supervision, and law enforcement. Nevertheless, the diminished role of directly affected communities in the AMDAL process is a significant alteration that could affect the quality and acceptability of environmental assessments and subsequent activities.

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