Potential Conflicts Between the Omnibus Law and the Paris Agreement in Indonesia’s Environmental Policy

Abstract

This article discusses the potential conflicts between certain provisions in Law No. 11 of 2020 on Job Creation (Omnibus Law) which has been revised in Law No. 6 of 2023, and the Paris Agreement, an international treaty binding countries to reduce greenhouse gas emissions and combat climate change. Several provisions in the Omnibus Law relax environmental regulations, such as reducing the requirements for Environmental Impact Analysis (Amdal), eliminating environmental permits as a prerequisite for business licenses, accelerating the conversion of forest land, and simplifying the permitting process in the extractive sector. These provisions could lead to increased deforestation and carbon emissions, which contradict Indonesia’s obligations under Articles 4 and 5 of the Paris Agreement to reduce emissions and protect forests. Through the ratification of the Paris Agreement via Law No. 16 of 2016, Indonesia committed to taking concrete steps to mitigate greenhouse gas emissions. However, policies in the Omnibus Law risk undermining this commitment by weakening environmental safeguards. This article emphasizes the need for a reevaluation of national regulations to ensure alignment with international obligations, as well as the importance of maintaining Indonesia’s credibility in the global fight against climate change