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Indonesia Plans to Relax Environmental Rules for Coal Mining

Coal News - Published on Mon, 17 Feb 2020

Image Source: FT
Indonesia plans to relax environmental rules to encourage investments in coal mining by cutting red tape. The Job Creation bill, submitted to parliament last week, aims to open up industries and includes proposals to relax the need for companies to conduct environmental studies and eases rules on coal mining. Types of businesses that require an environmental study, known as an AMDAL, will no longer be specified and subject to separate, lower level regulation. Currently, companies that exploit natural resources must conduct an AMDAL, which is intended to assess the impact of the investment on the environment and local community. As part of the bill, the government is also seeking to remove an existing rule allowing residents who may be affected by an investment to object during an AMDAL process.

It has drawn criticism from activists who say the government is putting profit ahead of protecting the archipelago's rich natural surroundings.

Indonesia is the world's biggest thermal coal exporter and the fuel accounts for around 60 percent of its energy mix, despite targets to use more renewables.

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Posted By : Nishith Sharma on Mon, 17 Feb 2020
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