“The Enactment of the Omnibus Law and its Amendments to the Spatial Land Law”
On 2 November 2020, the Indonesian Government enacted Law Number 11 of 2020 on Job Creation (the “Omnibus Law”). The Omnibus Law itself was passed by the Indonesian House of Representative on 5 October 2020.
The main purpose of the enactment of the Omnibus Law is to absorb as many Indonesian workforces as possible amid increasingly competitive environment and demands of economic globalization. For such purpose, the Omnibus Law has amended more than 70 Indonesian laws. The amendment aims to streamline business activities for easing investment either domestic or foreign, and hence, would attract more capital to create jobs for Indonesian citizens. These business activities are now predominantly regulated by the Central Government, departing from the previous regime where they were also shared by the Regional Government.
The laws and regulations which would take particular attention under this alert are concerning spatial land (“Spatial Land Law”).
We will focus on the important notes on amendments to the Spatial Land Law, as follows:
IMPORTANT NOTES ON AMENDMENTS TO THE SPATIAL LAND LAW
The following are main changes to the Spatial Land Law based on the Omnibus Law:
Licensing on Spatial Land Utilization
Spatial Utilization License is no longer required. Omnibus Law has governed new spatial land utilization permit, which are the Suitability of Spatial Utilization Activities and Business Licensing.
The authority to provide Suitability of Spatial Utilization Activities and technical assistance for a spatial planning for the purpose of accelerating the implementation of national strategic programs are now the central government’s authority. Further, the Omnibus Law requires local government to apply the Norm, Standard, Procedure and Criteria set by the central government based on government regulation. The provincial and regency/city spatial planning shall be determined no later than 4 (four) months since central government provide an approval of such spatial planning.
Based on the Omnibus Law, local spatial plan, which consists of provincial and regency/city spatial plan, shall conform and not contradict with the national spatial plan.
The Omnibus Law governed integrated spatial planning which consists of the following:
Integration of the national marine spatial planning (Rencana Tata Ruang Laut/ RTRL Nasional) with national land spatial planning (Rencana Tata Ruang Wilayah / RTRW Nasional);
Integration of the national strategic areas zonation planning (Rencana Zonasi Kawasan Strategis Nasional/ RZ KSN) with national strategic areas spatial planning (Rencana Tata Ruang Kawasan Strategis Nasional/ RTR KSN);
Integration of the coastal areas and small islands zonation planning (Rencana Zonasi Wilayah Pesisir dan Pulau-Pulau Kecil) with provincial land spatial planning (Rencana Tata Ruang Wilayah / RTRW Provinsi).
Under the Omnibus Law, the obligation to obtain Business Licensing for indigenous people on coastal areas and small islands are exempted and the indigenous people shall entitled to obtain legal aid and assistance. Also, Business Licensing for coastal areas utilization conducted by government agencies as well as utilization based on national strategic policy are replaced by confirmation.
Further, the provisions on spatial planning for provincial strategic areas and regency/city strategic areas are revoked. Therefore, the Omnibus Law only governed spatial planning for national strategic areas.
Moreover, Omnibus Law governed that the local spatial planning and detailed spatial planning (Rencana Detail Tata Ruang/ RTDR) shall be carried out by public consultations and the central government shall approved the detailed spatial planning. Detailed spatial planning is in digital data form. Therefore, it can be accessed and applied online.
Other Related Amended Provisions
The Omnibus Law revoked the provision that agropolitan or agrocity area is classified as rural area. Provisions regarding rural areas shall be further regulated under the government regulation.
The Omnibus Law revoked the provision regarding minimum requirements of 30% (thirty percent) of the forest area. However, the Omnibus Law governed more detailed consideration for the stipulation of a forest area.
The Omnibus Law governed provision regarding base map for compilation of spatial planning. If such base map is not yet available, then the compilation of spatial planning shall utilize another base map. However, the Omnibus Law does not stipulate further regarding the term “another base map”.
Please note that the information contained in this alert should be only used as a general guideline with respect to the subject hereof and may not contain legal advice for your specific cases. The information herein should not be used or relied upon in regard to any particular facts or circumstances without seeking legal advice from us. We will not be liable nor be responsible for any consequences, damages or other similar forms which may be suffered by any party who had used or relied upon this alert.
Nurjadin Sumono Mulyadi & Partners