The omnibus bill on job creation has caused yet another controversy as it would loosen and even strip measures on environmental oversight, including the requirement for businesses to obtain an Environmental Impact Analysis (Amdal) document.

Under the bill, regional administrations would be stripped of their power to manage forests and the environment and the central government would be the only authority on spatial planning and land and forest management.

Article 18 of the draft bill, which would revise Law No. 26/2007 on spatial planning, includes a stipulation that, in the case of overlapping claims over spatial planning in forests, a presidential regulation would be issued.

The central government's authority would also be strengthened under Article 23 of the bill, which calls for a revision of Law No. 32/2009 on environmental management and protection. The article would diminish the role of regional administrations in overseeing the environment.

Waste-dumping permits are currently acquired through governors, mayors or regents. Under the omnibus bill, the central government would hand out the permits.

Environmental restoration funds that companies must prepare would have to be deposited at banks selected by the central government. Currently, regional leaders select the banks.

Businesses would be obliged to protect the environment and fined should they break the rule, but all oversight would be conducted by the government.

Indonesian Center for Environmental Law (ICEL) executive director Raynaldo Sembiring said the omnibus bill largely reduced existing safeguards needed to protect the environment from business practices.

He said that while Amdal provided academic analysis, environmental permits should be the guiding principle of environmental business practices.

“When this is eliminated, we will have lost an instrument to stop the effects of environmental degradation as stipulated in the law on environmental protection,” Raynaldo told The Jakarta Post.

He said the lack of environmental safeguards would make it more difficult to ensure that corporations avoid polluting, which in turn could increase costs and cause conflicts in the affected areas.

Raynaldo also doubted the government's ability to properly monitor thousands of companies, a burden that is currently shared by regional administrations.

Environment and Forestry Minister Siti Nurbaya said the omnibus bill aimed to protect citizens.

“No ordinary citizen will be punished for making a living from the forest,” she said on Friday.

She added that there was still room for improvement and the potential for further revisions.

Separately, Andi Akmal Pasluddin, a member of the House of Representatives Commission IV overseeing agriculture, the environment, forestry and oceans, said the commission would study any revisions related to the elimination of environmental permits.

“A lot of corporations were found to have violated [the Environmental Protection Law], and if it [the environmental permit] is eliminated, it will worsen environmental damages,” the Prosperous Justice Party (PKS) politician said, adding that it would not be fair to trade environmental protection for investment.

Daniel Johan, another House Commission IV member, said although the omnibus bill was expected to attract investment and create jobs, the environment should remain a greater priority.

“This draft bill was made to strengthen the nation’s industries, but it could also lead to us to major environmental disasters,” the National Awakening Party (PKB) politician said.

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