Coastal Management

As an archipelago State it is surprising that Indonesia has never had specific legislation in place to manage such a vast and potentially long-term sustainable economic resource. The basic numbers here of 17,504 islands and more than 81,000 km of coastline serve to highlight the huge economic potential of proper and effective coastal management. The current legislative framework sees Indonesia’s vast coastal resources fall under Law No. 84 of 1992 on Spatial Planning.

Unfortunately, the Spatial Planning Law has focused almost exclusively on land-based spatial planning at the expense of any serious contemplation of Indonesia’s vast coastal resources. Commission IV of the House of Representatives (DPR) is currently debating the Bill on Coastal Management and if the Bill successfully passes the DPR then the new regulatory framework for coastal management will provide clearer mechanisms for the exploitation of coastal resources and legal certainty for investors. The exploitation of Indonesia’s coastal resources is expected to generate trillions of Rupiah in the future.

In the absence of a national regulatory framework on coastal management the regions have attempted to compensate for this deficiency by issuing Regional Regulations. To date 6 Regions have issued regulations; Gorontalo Province, Southeast Sualwesi Province, West Tanjungjabung Municipality, East Kotawaringin Municipality, Maros Municipality, and Gorontalo Municipality.

The Bill is comprehensive and addresses not only the exploitation of coastal resources but also issues of conservation, reclamation, and rehabilitation. The rights and access of the community is also regulated, as are the criminal sanctions for breach of the provisions. These criminal sanctions provide for fines up to IDR 2 billion and terms of imprisonment of up to 10 years.

The need for a specific coastal management law is likely to drive the passage of this Bill through the DPR.