There has been a lot of speculation recently around the details of the government's much anticipated Omnibus Laws. These are being drafted to cut red tape and improve Indonesia's investment climate and are expected to be delivered in three bills or clusters.

According to Kontan, the first cluster will be focused on simplifying business licensing and that includes Building Permits (IMB) and environmental impact and analysis (AMDAL.)

Clarification from the Ministry of Economic Affairs

Many interpreted this as meaning IMBs and AMDALs would no longer be needed, which was widely seen as opening a Pandora's Box of disorganized spatial and development planning.

But the Ministry of Economic Affairs has helped to clarify things in recent days.

Local news wires are running details of an official statement released by Secretary of the Coordinating Ministry for Economic Affairs (Sesmenko), Susiwijono, who clarified Environmental Permits and Building Permits would not be removed but instead they would be integrated into spatial planning (RDTR) and assessed according to 'business risks'.

 Standards based on business risk

"So the point is, we do not have to delete the Building Permit (IMB) and Environmental Permit (AMDAL) altogether, but what is done is to make a standard based on the risk of each business," he explained in his official statement.

SindoNews are reporting the first cluster of the Omnibus Law will address 52 laws and 770 articles and be divided into 18 sub-clusters, which will include Location, Environment, Buildings, Agriculture, Forestry, Marine Fisheries, Energy and Mineral Resources (ESDM), Nuclear, Industry, Trade, Health, Drugs and Food, Tourism, Education, Religious Affairs, Transportation, Public Works and Public Housing (PUPR), Post and Telecommunications, Defense and Security. 

Sources:  Ministry of Finance, SindoNews, Kontan, The Jakarta Post

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