Striking a Balance: Streamlining Environmental Licensing for Business Growth and Environmental Protection in Indonesia

Abstract

Indonesia's environmental licensing process is critical for regulating business activities and safeguarding the environment. This analysis explores the interaction between this process and the government's recent efforts to enhance "ease of doing business." Before streamlining measures, obtaining environmental permits was a complex and time-consuming ordeal. Businesses faced difficulties meeting stringent requirements and navigating a bureaucratic labyrinth. The "ease of doing business" provisions aim to simplify procedures and expedite permit acquisition, ideally without compromising environmental protection. The paper emphasizes the importance of achieving a balance between efficiency and environmental protection. While streamlining can improve business competitiveness, a decline in environmental impact assessment quality could have negative consequences. The discussion also explores the various obstacles hindering the current licensing process, including complex bureaucracy, high costs, and limited interagency coordination. To overcome these challenges, the paper suggests measures to simplify procedures, improve communication between government agencies, and raise environmental awareness among businesses. By effectively integrating ease of doing business with environmental considerations, Indonesia can create a more efficient licensing system that fosters sustainable economic growth.