The Impact of the Job Creation Law on Environmental Sustainability and Forest Resources in Indonesia
Keywords:
Job Creation Law, deforestation, biodiversity loss, environmental licensing, forest governanceAbstract
The enactment of Indonesia’s Job Creation Law has triggered significant debate regarding its implications for environmental sustainability and forest resource management. This study aims to critically analyze the transformation of environmental licensing instruments under the law, focusing on their ecological, legal, and socio-political impacts. Using a normative legal research approach combined with secondary data analysis from Statistics Indonesia (BPS), the Ministry of Environment and Forestry, and international organizations, this research evaluates changes in regulatory frameworks, deforestation trends, and biodiversity risks. The findings indicate that the replacement of environmental permits with environmental approvals, the adoption of a risk-based licensing model, and the partial decriminalization of environmental violations weaken preventive mechanisms in forest governance. Data show that in 2024 alone, gross deforestation reached 216,200 hectares with net losses of 175,400 hectares, reflecting a continuous negative trend despite reforestation programs. Furthermore, BPS data reveal critical declines in flagship species such as the Sumatran tiger, elephant, and orangutan, whose populations remain under severe pressure due to habitat loss and fragmentation. These outcomes suggest that the Job Creation Law, while designed to accelerate investment, has unintentionally exacerbated ecological vulnerabilities and biodiversity loss. The study concludes that sustainable development in Indonesia requires re-strengthening legal safeguards, enhancing monitoring capacity, and ensuring meaningful public participation to balance economic growth with long-term environmental resilience.
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Copyright (c) 2025 Fredella Mu’allimah Al Farabi, Dina Alya Maisan, Raden Miko Ardiansyah J., Harlian Satria Wilwatikta, Raihan Perdana Putra (Author)
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