PP 57/2016 Fraudulent Regulation for Investment

By : Herry Barus And Aldo Bella Putra | Friday, December 08 2017 - 21:00 IWST

INDUSTRY.co.id - Bogor - Government Regulation (PP) on protection and management of peat ecosystems contained in PP 71/2014 jo.PP 57/2016 is still a scary regulation for investors amid the hard work of the Jokowi-JK government to improve infrastructure to attract investors.

This was raised in a National Seminar on Reflection on Policies on the Management of Wetlands of Indonesia held by Soil Science Association of Indonesia (HITI) in Bogor, Thursday (7/12/2017)

Researcher of Institute for Economic and Social Research (LPEM) Faculty of Economics and Business University of Indonesia (UI) Riyanto warned, the government needs to be rational in issuing regulations in order not to interfere with the investment that has been running.

What the use of building infrastructure is if the existing regulation makes investors fear. The government should be rational to see that this PP is not yet an instrument capable of supporting economic and conservation activities simultaneously, Riyanto said.

Riyanto revealed that the purpose of this regulation is to reduce land and forest fire disasters (karhutla). If you look at the objectives, what should be regulated is the management of fire prevention.

Riyanto argued that gas stations in the general area are more at risk of high fires and tremendous impacts than forests. It's just that, because there is good management, the problems can be overcome with almost perfect level of supervision.

The government should have good management related to peatland management so as not to interfere with the interests of the existing investment.

These non-pro-investment rules will have a significant impact on the economy, especially if many peatlands are converted into protected functions.

Based on an analysis of the economic impacts, the provisions in PP 57 have a direct impact on the reduction of the land area and the provision of raw materials. This has an impact on the macro economy as well as providing uniform social consequences for unemployment due to termination of employment.

In the palm oil industry, this regulation has an impact on the decline in the labor force of 1,116,170 people, the decrease of the community's income by 15 trillion, the decrease of the national GDP of Rp 46 trillion and the decrease of national output of Rp 76.5 trillion. Yet on the other hand the industry is able to absorb the workforce of about 5.3 million people and support more than 21 million people.

While for Industrial Timber Estate, PP 57 resulted in the decrease of wood production as industrial and paper raw material by 26,46 million m3 of timber. If rupiah reach Rp 76 trillion and the number of workers who will lose their livelihood reaches 610 thousand inhabitants. It is conceivable if the PP realized how big the economic, social and investment threats would come true.

Director of the Directorate of Agricultural Policy and Policy Studies IPB Dr Dodik Ridho Nurrochmat said, many regulations are not in sync with the needs of this country. This is due to a lack of understanding from policymakers.

Such a policy is dangerous because it makes the direction of state development unclear because of its overlap. Rules,

News Comment

Today's Industry

President Joko Widodo

Jumat, 24 September 2021 - 20:15 WIB

Indonesia Has Enormous Potential to Become Global Maritime Axis, President Jokowi Says

Indonesia, the world’s largest archipelagic country with 17,000 islands, a coastline of more than 108,000 kilometers and the world’s largest marine biodiversity, should become the world’s…

Minister of Finance Sri Mulyani Indrawati/ Photo by: PR of Cabinet Secretariat.

Jumat, 24 September 2021 - 18:48 WIB

State Budget Performance Improves; Economic Recovery Makes Headway: Sri Mulyani

The realization of this year’s State Budget until August 2021 has shown good performance, marked by maintained growth in expenditure realization of Rp1,560.8 trillion or a growth of 1.5 percent,…

President Jokowi accompanied by Cabinet Secretary Pramono Anung to conduct a working visit to Cilacap regency, Central Java province (23/09/2021). (Photo by: Presidential Secretariat’s Press, Media, and Information Bureau/Laily Rachev)

Jumat, 24 September 2021 - 17:10 WIB

President Jokowi Kicks Off C. Java Working Visit

President Joko “Jokowi” Widodo on Thursday (23/09) accompanied by Cabinet Secretary Pramono Anung left for Cilacap regency, Central Java province for a working visit.

President Joko Widodo delivers his remarks through video conference at the 76th UNGA General Debate Session on Thursday (09/23) Western Indonesia Time. Photo by: PR of Ministry of Foreign Affairs.

Jumat, 24 September 2021 - 16:37 WIB

President Jokowi: Inclusiveness is Top Priority for Indonesia’s G20 Presidency

Indonesia will make the best endeavor to ensure that the G20 can benefit all countries, President Joko “Jokowi” Widodo has stated.

Indonesian Ambassador to the United Nations Darmansjah Djumala receives award from the IAEA and the FAO in Vienna, Austria, Monday (20/9). (Photo: PR of BRIN)

Rabu, 22 September 2021 - 19:30 WIB

Indonesia Wins Award on Food Plant Breeding from FAO, IAEA

Indonesia has received an outstanding achievement award from the Food and Agriculture Organization (FAO) and the International Atomic Energy Agency or IAEA.