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Jakarta Post

Omnibus law to scrap permit requirements for ‘simple’ buildings: Minister

  • Marchio Irfan Gorbiano and Made Anthony Iswara

    The Jakarta Post

Jakarta   /   Thu, January 16, 2020   /   12:44 pm
Omnibus law to scrap permit requirements for ‘simple’ buildings: Minister Thick smog blankets high rise buildings in Jakarta's business district along Jl. Sudirman on Oct. 9, 2019. (JP/Dhoni Setiawan)

The government will ease permit requirements for the construction of small-scale buildings under a new omnibus law, Coordinating Economic Minister Airlangga Hartarto said on Wednesday.

Airlangga told reporters at the State Palace that authorities would not require permits for "simple" structures such as two-story buildings.

"For standard buildings that are already regulated and have prototypes, no further licensing will be needed," Airlangga said.

However, "highly complex" buildings will still require certification of occupancy (SLF) or a building permit (IMB), the minister said.

President Joko “Jokowi” Widodo’s second-term administration is preparing an omnibus bill that will include provisions aimed at improving the country’s ease of doing business by simplifying licensing to attract more investment.

The omnibus bill on job creation will also see environmental impact analyses (Amdal) and IMB requirements scrapped for low-risk investments. The Amdal and IMB requirements have been criticized by business players as unnecessary red tape.

Read also: Liberalization at what cost? Observers raise concerns over sustainability of investments

However, environmentalists and development planners have voiced opposition to the plan.

The Indonesian Forum for the Environment (Walhi) has lambasted the government’s plan, arguing that eliminating the IMB and Amdal requirements would harm the environment and people’s safety.

“We believe the government is destroying our environment by using foreign investment, when it should be protecting our natural resources by improving the overall system and strengthening law enforcement, particularly through environmental analyses,” Walhi campaigner Edo Rahman told The Jakarta Post in December.