While the new omnibus law would ease restrictions that had been identified as obstacles to job-creating investment and higher productivity, which could boost growth and reduce poverty, one concern related to environmental standards, said IMF mission chief for Indonesia Thomas Helbling.

“The implementing regulation that is now underway should be guided by the need to ensure sustainable and inclusive growth,” he told The Jakarta Post through email on Wednesday. “It should be applied in a consistent and transparent fashion.”

The omnibus bill, passed into law on Oct. 5, has sparked widespread public protests and labor strikes as it is considered as undermining labor rights and weakening environmental protection. Protests entered their third week as thousands of students and workers took to the street on Tuesday.

Businesses considered low-risk will only need to register before they begin operations, according to the new law. Meanwhile, businesses considered medium-risk need to follow a set of standards, and only high-risk investment required an environmental permit.

Environmental studies are only required for investments considered to be high-risk. Investment permit procedures by provincial and local governments will be standardized, with the central government able to take over in certain cases.

The law raises the fines for environmental damage, with those burning forests facing 15 years of imprisonment and fines of Rp 7.5 billion.

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