Investment Policy In Mineral And Coal Mining Threatens The Existence Of Environment After The Implementation Of Job Creation Law In Indonesia

Abstract

Indonesia possesses abundant natural resources in the form of minerals and coal mining. However, there is a need to increase investment in the mineral and coal mining sector to ensure it contributes to national development without solely relying on state revenue. Consequently, the Indonesian government introduced an investment policy that involved a comprehensive overhaul of the legal framework for mineral and coal mining. This initiative resulted in the creation of the Omnibus Law, later enacted as Law No.11 of 2020 concerning Job Creation. Nevertheless, the broad-reaching implications of this legislation on environmental sustainability are a cause for concern. The provisions within the law, which aim to simplify business licensing and facilitate land acquisition, conflict with numerous regulations in the forestry and environmental fields. As a result, this law possesses significant potential to cause widespread environmental damage, as it eliminates the requirement for environmental impact analysis (AMDAL) when obtaining business licenses and offers easy licensing for mining exploration within forest areas. It is crucial to recognize the importance of balancing economic development with environmental sustainability within the mining sector.