Forestry Draft Bill Tightens Sustainability Indicators

Forest management sustainability indicators will be tightened for business license holders. This is one of the substances of the draft (“Forestry Draft Bill”) revision of Law No. 41 of 1999 on Forestry, as amended several times, most recently by Regulation of the Government in Lieu of Law No. 2 of 2022 on Job Creation (collectively referred to as “Law 41/1999”).

“We must create a roadmap for sustainable development that prioritizes environmental sustainability before addressing social and economic issues,” said Daniel Johan, a member of Commission IV of the House of Representatives of the Republic of Indonesia (“DPR RI”), to Hukumonline.

The regulation will require permit holders to meet sustainability indicators, including forest area restoration, carbon absorption, and biodiversity protection.

In addition, environmental impact analysis will be tightened when granting business permits in forest areas. The Forestry Draft Bill will be discussed again next month.