The Governmment Should Review the Regulation to Postpone the Investment about Peat Regulation

The Governmment Should Review the Regulation to Postpone the Investment about Peat Regulation

InfoSAWIT, BOGOR –In a national seminar about Refleksi Kebijakan Pengelolan Lahan Basah Indonesia, held by Himpunan Ilmu Tanah Indonesia (HITI) in Bogor, Thursday (7/12/2017)., researcher of Lembaga Penyelidikan Ekonomi dan Masyarakat (LPEM), Faculty of Economy and Business, University of Indonesia (UI), Riyanto reminded, the government should be rational to publish the regulation so that it would not disturb the available and nowadays investment.

Until now, there are regulations that may stop the investment, such as, Government’s Regulation about the Protection and the Ecosystem Cultivation of Peat, No. 71/2014 jo.PP 57/2016.

“What needs to develop the infrastructure if the regulation makes the investors afraid? The government should be rational to see that the Government’s Regulation is not the instrument to support the economy and conservation simultaneously,” he said in the official statement to InfoSAWIT.

He continued, the goal of the regulation is to decrease the fire in the forest and areas. So referring to the goal, what is needed to regulate is the management of the fire not to happen.

He made analogy that the gas pump in the public place would be risky to be burnt and making the extraordinary impact compared to the forest. But, because of good management, the problems could be solved by the hardly perfect supervision. The government should have the good management about the peat cultivation so it would not interfere the running investment.

“The regulation that is not pro investment, of course, would be significantly influencing the economy, namely if the peat is substituted to be protected areas,” he said.

Based on the analysis done to the economy, the Government’s Regulation No 57 directly influences the width and the procurement of the material. It influences the larger economy and makes significant social consequence to the unemployment because of hiring.

In palm oil industries, the regulation influences the numbers of workers, reaching 1.116.170 men, the decreasing income of the people about Rp 15 billion, the decreasing gross domestic product, reaching Rp 46 billion, the decreasing output, reaching Rp 76,5billion. On the other hand, the industries could hire about 5,3million men and help more than 21 million men. (T2)

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