Adianto P. Simamora, Jakarta – While in the past businesses in Jakarta have largely had their way on environmental issues, that could change as the city administration discusses tightening rules on development.

The Jakarta government is currently reviewing procedures for businesses applying for Environmental Impact Analysis (Amdal) approval. The administration may also begin requiring developers to put up money to ensure compliance with all environmental requirements.

"We are still formulating a mechanism," Environmental Management Board head Budirama Natakusumah told The Jakarta Post on Thursday.

Offering an example, Budirama said if a company was required to establish a waste management facility as part of a development, it would have to deposit money in the amount of the projected cost of constructing the facility.

"If the developers meet all the requirements, we will return the money. If they fail, we will use the money to build the facilities for them," he said.

He said in the past businesses violated Amdal requirements because of the lack of sanctions. "We can no longer allow such practices to take place. It will just further damage the city's environment," he said.

Andreas Pramudianto from the University of Indonesia, who is also a government consultant for the Environmental Impact Analysis, expressed doubts over the proposal.

"The problems are where will the money be deposited and how will it be returned. The administration must create a clear mechanism. This is about money, we have to be careful," he told the Post.

A 2002 gubernatorial decree on the Amdal requires developers to inform the public of proposed projects and consult with residents in areas affected by the development as part of feasibility studies necessary for Amdal approval.

The Amdal is meant to help the city administration decide on whether to allow or reject a project.

However, Andreas said both the city and businesses largely ignored the environmental analysis. "It's a poorly kept secret that many existing establishments have yet to have their Amdal documents approved," he said.

While many environmentalists initially welcomed the busway development, they complain that the administration failed to perform an Amdal. The result, they say, has been a worsening of traffic along several busway corridors as a result of the failure to perform proper feasibility studies.

When asked about these charges, Budirama of the Environmental Management Board said the busway was a special exception because it was "an urgent project".

The central government also has a special commission to audit environmental impact analyses before awarding permits to businesses.

However, a survey by the State Ministry for the Environment released in May showed the commission had done little to stop environmental degradation in the country.

The survey found 75 percent of the 474 municipalities in Indonesia had no Amdal commissions. Of the original 119 Amdal commissions set up around the country, only half are still functioning and more than three-quarters of the 119 are issuing documents of "poor" or "extremely poor" quality.