PUBLICATIONS

The Job Creation Bill (RUU Cipta Kerja) is considered to have the potential to weaken the protection of natural forests and the environment. If enacted and implemented, it could increase the risk of natural forest loss and undermine Indonesia’s ability to achieve its climate commitments (NDC targets) in the forestry sector. Based on simulation results, five provinces are at risk of losing all of their natural forests due to deforestation by 2056: Riau (by 2032), Jambi and South Sumatra (by 2038), Bangka Belitung (by 2054), and Central Java (by 2056).

Furthermore, the opportunity to protect 3.4 million hectares of natural forest located within oil palm concession areas—an opportunity that could be realized under the momentum of the palm oil moratorium—would be lost, particularly in light of efforts to meet the increased domestic biodiesel consumption target by 2024. If the Bill is implemented, the deforestation quota of 3.25 million hectares between 2020 and 2030—required to meet the forestry sector’s NDC target—would be exceeded by 2025, given that Indonesia’s average annual deforestation rate from 2006 to 2018 was 688,844.52 hectares per year.

This analysis simulates scenarios of natural forest loss due to deforestation if provisions within the Job Creation Bill that risk weakening forest protection are enacted. Provisions with the potential to trigger deforestation and forest/land fires include the removal of the minimum 30% forest area requirement per watershed and/or island; the elimination of the strict liability principle for permit holders in cases of forest and land fires within their concession areas; the removal of the requirement to obtain an Environmental Permit; and the abolition of sanctions such as the suspension and revocation of Environmental Permits.

The weakening of these regulations is feared to encourage massive expansion of oil palm plantations into natural forests and forest areas, exacerbated by biodiesel consumption targets (B30–B100) and the expiration of Presidential Instruction (Inpres) No. 8 of 2018 on the palm oil moratorium. In light of these risks and the vital role of natural forests, the Parliament and the Government of the Republic of Indonesia are urged to halt deliberations on the Job Creation Bill that would weaken environmental and natural forest protection.