- The Draft Bill on Water Resources (“Draft Bill”) has still not been passed by the House of Representatives, in spite of the fact that Law No. 7 of 2004 on Water Resources was revoked way back in 2013.
- In response to the formulation of the Draft Bill, the Employers’ Association of Indonesia (“APINDO”) recently claimed that the various provisions which are set out under the Draft Bill are in fact unfair to businesses and detrimental to their operations as stakeholders. Moreover, Lucia Karina, a member of APINDO’s Public Policy Unit, recently claimed that businesses had to date not played any active part in deliberation meetings relating to the Draft Bill.
- The Draft Bill provisions which, it is claimed, are not favorable to businesses address the following areas: 1) The obligation for businesses to allocate at least 10% of their business profits to efforts at water-resource conservation, in spite of the fact that businesses which utilize surface water and groundwater are already subject to taxes of 10% and 20% respectively; and 2) No clear distinction is made under the Draft Bill between the social and economic functions of water resources, which arguably limits the participation of private parties in the management of water resources.
- For more on this story, see Hukumonline: “Apindo Nilai Draf RUU Sumber Daya Air ‘Cekik’ Dunia Usaha”.
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