Job Creation Law Reduce Fines for Corporations Violating Spatial Planning Permit

IDNEWSNOW.COM, Jakarta – The omnibus law on job creation that was recently passed by the House of Representatives (DPR) on Monday, October 5, 2020, will greatly diminish the punishment or fines subjected to corporations that violate the spatial planning regulation. 

The latest Article 17 (37) in the omnibus law states that corporations violating the law will be handed criminal fines only up to one-third of the initial punishment. Prior to the changes, it initially subjected violating corporations to three-times of the fines aimed towards individuals. 

Contrasting with the lightened fines for corporations, fines for individuals are increased while incarcerations for individuals relatively remain the same with some being reduced. This is due to the changes in the Spatial Planning Law because of Job Creation law. 

However, drastic changes in the Job Creation Law involves permits filed by corporations as Article 1 (32) of the Spatial Planning Law states:

“Spaces utilization permit is the required permit to conduct activities on utilized spaces that adheres to the provisions of the legislation.” 

The Job Creation Law has changed that policy to “suitability of activities” which means the criminal provisions are no longer based on the violation of the permits but violations of these “suitabilities” that has changed it into 

“Suitability of Spatial Utilization Activities is the suitability of the plan for spatial use activities with the spatial plan,” the new law defined.

FAJAR PEBRIANTO

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