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LAW OF THE REPUBLIC OF INDONESIA
No.41/1999

CONCERNING
FORESTRY AFFAIRS

BY THE GRACE OF GOD ALMIGHTY
THE PRESIDENT OF THE REPUBLIC OF INDONESIA,

Considering:

In view of:

With collective approval of
THE HOUSE OF REPRESENTATIVES OF THE REPUBLIC OFINDONESIA

DECIDES

To stipulate:

THE LAW ON FORESTRY AFFAIRS

CHAPTER I
GENERAL PROVISIONS

Part One
Definition

Article 1

Referred to in this law as:

Part Two
Principle and Purposes

Article 2

Forestry undertakings are based on the principles of benefit and sustainability, democracy, justice, togetherness, transparency and integratedness.

Article 3

Forestry undertakings are intended for the maximum just and sustainable prosperity of the people by means of:

a. guaranteeing the existence of forest with sufficient extent and proportional spread;

b. optimizing various forest functions, encompassing the functions of conservation, protection and production in order to acquire environmental, social, cultural and economic benefits in a balanced and sustainable manner;

c. promoting the supporting capacity of river basins;

d. promoting the capability of developing the capacity and potency of the community characterized by participation, justice and environment-oriented concept so that social and economic resilience and resilience against the impacts of external changes may be created; and

e. guaranteeing the distribution of just and sustainable benefits;

Part Three
Forest Control

Article 4

(1) All forests within the territory of the Republic of Indonesia, including the natural wealth contained therein, are controlled by the State for the maximum prosperity of the people.

(2) Forest control by the State as meant in sub-article (1) authorizes the government to:

(3) Forest control by the State continues to take into account the rights of the communities upholding customary laws as long as they actually still exist and their existence is recognized, and does not contradict with national interests.

CHAPTER II
STATUS AND FUNCTIONS OF FORESTS

Article 5

(1) On the basis of their status, forests comprise:

(2) State's forests as meant in sub-article (1) letter a may be in the form of custom-related forests.

(3) The government will stipulate the status of forests as meant in sub-articles (1) and (2); and custom-related forests will be stipulated as long as in accordance with the reality the communities upholding the customary laws concerned are still in existence and their existence is recognized.

(4) If in their development, the communities upholding customary laws concerned no longer exist, the right to manage custom-related forests will return to the government.

Article 6

(1) Forests have three functions, namely:

(2) The government stipulates forests on the basis of the chief functions as follows:

Article 7

Conservation forests as referred to in Article 6 sub-article (2) letter a comprise:

Article 8

(1) The government may stipulate certain forest areas for specific purposes.

(2) The stipulation of forest areas for specific purposes as meant in sub-article (1) is needed for public purposes such as:

(3) Forest areas for specific purposes as meant in sub-article (1) will not change the chief functions as forest areas as meant in Article 6.

Article 9

(1) For the purpose of regulating micro climate, aesthetic and water absorption, a certain area in every city is stipulated as a city forest.

(2) Further provisions as meant in sub-article (1) will be regulated in a government regulation.

CHAPTER III
FOREST MANAGEMENT

Article 10

(1) Forest management as meant in Article 4 sub-article (2) letter a is aimed at obtaining the maximum multi-purpose and sustainable benefit for the prosperity of the people.

(2) Forest management as meant in sub-article (1) encompasses the activities of:

CHAPTER IV
FOREST PLANNING

Part One
General

Article 11

(1) Forest planning is aimed at providing a guideline and direction which will guarantee the achievement of the goal of forestry undertakings as meant in Article 3.

(2) Forest planning is implemented in ways characterized by transparently, responsibility, participation, integratedness and with account being taken of the regional uniqueness and aspirations.

Article 12

Forestry planning as meant in Article 10 sub-article (2) letter a encompasses:

Part Two
Taking stock of forests

Article 13

(1) Forests are taken stock of to find out and obtain data and information about resources, potentials of forest natural wealth, and their environment in a complete manner.

(2) The act of taking stock of forests as meant in sub-article (1) is undertaken by means of surveys on the status and physical condition of forests, flora and fauna, human resources and the social condition of the community in and around forests.

(3) The act of taking stock of forests as meant in sub-article (2) comprises:

(4) The result of the act of taking stock of forests as meant in sub-articles (1), (2) and (3) is used among other things as a basis for confirmation of forest areas, the drawing up of a forest resources balance sheet and the drawing up of forestry plans and a system of information on forestry.

(5) Further provisions as meant in sub-articles (1), (2) and (3) will be regulated in a government regulation,

Part Three
Confirmation of Forest Areas

Article 14

(1) On the basis of the act of taking stock of forests as meant in Article 13, the government will undertake the confirmation of forest areas.

(2) The activity of forest area confirmation as meant in sub-article (1) is carried out to provide legal certainty on forest areas.

Article 15

(1) Confirmation of forest areas as meant in Article 14 is undertaken through the following process:

(2) Confirmation of forest areas as meant in sub-article (1) will be undertaken with account being taken of the regional spatial layout designing plan.

Part Four
Delineation of Use System of Forest Areas

Article 16

(1) On the basis of the result of confirmation of forest areas as meant in Articles 14 and 15, the government will undertake the delineation of the use system of forest areas.

(2) The delineation of the use system of forest areas encompasses the activities of stipulating the functions and uses of forest areas.

(3) Further provisions as meant in sub-article (1) and sub-article (2) will be regulated in a government regulation.

Part Five
Establishment of Forest Management Areas

Article 17

(1) The establishment of forest management areas is implemented for the levels of:

(2) The establishment of forest management areas at the management unit level will be implemented with account being taken of the characteristics of the land, the type of the forest, the functions of the forest, the condition of river basis, and the social, cultural, economic and institutional aspects of the local community, including the community upholding the customary laws and administrative boundaries of governments.

(3) The stipulation on the establishment of forest management units beyond the administrative boundaries of governments because of the conditions and characteristics and types of the forests will be specifically regulated by the Minister.

Article 18

(1) The government stipulates and maintains the sufficiency of the extent of forest areas and the closing of forests for each river basin and or island in order to optimize the environmental benefit, the social benefit and the economic benefit of the local community.

(2) The extent of a forest area which must be maintained as meant in sub-article (1) is a minimum of 30% (thirty percent) of the extent of the river basis and or the island with proportional spreading.

Article 19

(1) Changes in the designation and functions of forest areas are stipulated by the government on the basis of the result of an integrated research.

(2) Changes in the designation of forest areas a meant in sub-article (1) with a significant impact, an extensive scope and a strategic value will be stipulated by the government with the approval of the House of People's Representatives.

(3) The provisions on the procedure for the changes in the designation of forest areas and the changes in the functions of forest areas as meant in sub-articles (1) and (2) will be regulated in a government regulation.

Part Six
Drawing Up Of Forestry Plans

Article 20

(1) On the basis of the result of the act of taking stock of forests as meant in Article 13 and with account being taken of the factors of environment and social condition of the community, the government will draw up forestry plans.

(2) The forestry plans as meant in sub-article (1) will be drawn up in accordance with the period of time of planning, a geographical scale and also the chief functions of forest areas.

(3) Further provisions as meant in sub-article (1) and sub-article (2) will be regulated in a government regulation.

CHAPTER V
FOREST MANAGEMENT

Part One
General

Article 21

Forest management as meant in Article 10 sub-article (2) letter b encompasses the activities of:

a. forest arrangement and the drawing up of a forest management plan;

b. forest utilization and use of forest areas;

c. forest rehabilitation and reclamation, and

d. forest protection and nature conservation.

Part Two
Forest Arrangement and Drawing Up of Management Plan

Article 22

(1) Forest arrangement will be implemented in the framework of a more intensive management of forest areas in order to acquire a bigger and more sustainable benefit.

(2) Forest arrangement encompasses the division of forest areas into blocks on the basis of the ecosystem, types, functions and forest utilization plans.

(3) The blocks as meant in sub-article (2) will be divided into parcels on the basis of management intensity and efficiency.

(4) On the basis of the blocks and parcels as meant in sub-article (2) and sub-article (3), a forest management plan will be drawn up for a specific period of time.

(5) Further provisions as meant in sub-articles (2), (3) and (4) will be regulated in a government regulation.

Part Three
Forest Utilization and Use of Forest Areas

Article 23

Forest utilization as meant in Article 21 letter b is aimed at acquiring optimum and just benefit for the welfare of the entire community with the sustainability being maintained.

Article 24

Forest area utilization may be applied to all forest areas with the exception of nature reserve forests and the nucleus zones and jungle zones in a national park.

Article 25

The utilization of a nature conservation forest area and a nature reserve forest area as well as a hunting park will be regulated pursuant to the prevailing laws.

Article 26

(1) The utilization of protective forests may be in the form of area utilization, environmental service utilization and collection of non-timber forest products.

(2) The utilization of protective forests is conducted by means of granting area utilization business license, environmental service utilization business license and non-timber forest product collection license.

Article 27

(1) A business license for area utilization as meant in Article 26 sub-article (2) can be granted to:

(2) A business license for environmental service utilization as meant in Article 26 sub-article (2) can be granted to:

(3) A license for the collection of non-timber forest products as meant in Article 26 sub-article (2) can be granted to:

Article 28

(1) The utilization of production forests may be in the form of utilization of areas, utilization of environmental services, utilization of timber and non-timber forest products and the collection of timber and non-timber forest products.

(2) The utilization of production forests will be implemented through the granting of a business license for area utilization, a business license for environmental service utilization, a business license for timber forest product utilization, a business license for non-timber forest product utilization, a license for the collection of timber forest products and a license for the collection of non-timber forest products.

Article 29

(1) A business license for area utilization as meant in Article 28 sub-article (2) can be granted to:

(2) A business license for environmental service utilization as meant in Article 28 sub-article (2) can be granted to:

(3) A business license for non-timber forest product utilization as meant in Article 28 sub-article (2) can be granted to:

(4) A business license for timber forest product utilization as meant in Article 28 sub-article (2) can be granted to:

(5) A license for the collection of timber and non-timber forest products as meant in Article 28 sub-article (2) can be granted to:

Article 30

In the framework of the economic empowerment of the community, every state-owned enterprise, enterprise owned by a regional administration and Indonesian privately-owned company obtaining a business license for environmental service utilization and a business license for timber and non-timber forest product utilization will be obligated to cooperate with the cooperatives of the local community.

Article 31

(1) To guarantee the principles of justice, equity and sustainability, a business license for forest utilization is limited by with the consideration of the aspects of forest sustainability and business certainty.

(2) The limitation as meant in sub-article (1) will be regulated in a government regulation.

Article 32

Holders of licenses as regulated in Articles 27 and 29 are obligated to maintain, take care of and conserve the forests of their business locations.

Article 33

(1) The business of utilization of forest products encompasses the activities of planting, maintaining, harvesting, processing and marketing of forest products.

(2) Harvesting and processing of forest products as meant in sub-article (1) cannot exceed a sustainable supporting capacity of a forest.

(3) Regulation, fostering and development of forest product processing as meant in sub-article (2) will be regulated by the Minister.

Article 34

The management of a forest area for specific purposes as meant in Article 8 may be granted to:

Article 35

(1) Every holder of a business license for forest utilization as meant in Articles 27 and 29 will be subjected to the imposition of business license contribution fees, royalty, reforestation funds, and performance guarantee funds.

(2) Every holder of a business license for forest utilization as meant in Articles 27 and 29 is obligated to provide investment funds for forest conservation expenses.

(3) Every holder of a license for forest product collection as meant in Articles 27 and 29 will be subjected only to the imposition of royalty.

(4) Further provisions as meant in Sub-article (1), sub-article (2) and sub-article (3) will be regulated in a government regulation.

Article 36

(1) A titled forest will be utilized by the holder of the title on the land concerned, in accordance with its function.

(2) titled forest functioning as protection and conservation may be utilized as far as the function is not harmed.

Article 37

(1) The utilization of custom-related forests by the community upholding the customary laws concerned will be in keeping with their functions.

(2) Customs-related forests with the protection and conservation functions may be utilized as far as the functions are not harmed.

Article 38

(1) The use of forest areas for non-forestry construction purposes will be confined only to the production and protection forest areas.

(2) The use of a forest area as meant in sub-article (1) may be undertaken without altering the chief function of a forest area.

(3) The use of a forest area in the interest of mining activities may be undertaken through the granting of a lease use license by the Minister with account being taken of the extent of the area, the specific period and environmental sustainability.

(4) Mining with an open mining pattern will be prohibited in a protective forest area.

(5) The granting pf a lease-use license as meant in sub-article (3) with a significant impact, a wide scope and a strategic value will he undertaken by the Minister with the approval of the. House of People's Representatives.

Article 39

Implementation provisions on the utilization of forests and the use of forest areas as meant in Article 27, Article 29, Article 34, Article 36, Article 37 and Article 38 will be regulated further in a government regulation.

Part Four
Forest Rehabilitation and Reclamation

Article 40

Forest and land rehabilitation is aimed at restoring, maintaining and promoting the functions of forests and land so that their supporting capacity, productivity and role in supporting the system of life buffer will be sustained.

Article 41

(1) Forest and land rehabilitation will be undertaken by means of the following activities:

(2) The rehabilitation activities as meant in sob-article (1) will be conducted in all forests and forest areas with the exception nature reserves and nucleus zones of national parks.

Article 42

(1) Forest and land rehabilitation will be conducted on the basis of the specific biophysical conditions.

(2) The participative approach in the context of developing potentials and empowering the community will be prioritized in the implementation of forest and land rehabilitation.

(3) Further provisions as meant in sub-article (1) and sub-article (2) will be regulated in a government regulation.

Article 43

(1) Everyone owning, managing and or utilizing critical and non-productive land will be obligated to undertake forest rehabilitation for protection and conservation purposes.

(2) In implementing the rehabilitation as meant in sub-article (1), everyone may apply to non-government organization, other parties and the government for assistance, services and support.

Article 44

(1) Forest reclamation as meant in Article 21 letter c encompasses undertakings to improve or restore damaged forest land and vegetation so that they can perform their function to the optimum in accordance with their designation.

(2) The reclamation activities as meant in sub-article (1) encompasses taking stock of the location, determination of the location, planning and implementation of reclamation.

(3) Further provisions as meant in sub-article (1) and sub-article (2) will be regulated in a government regulation.

Article 45

(1) It is compulsory that the use of forest areas as meant in Article 38 sub-article (1) which results in forest damage should entail reclamation and or rehabilitation in accordance with the pattern stipulated by the government.

(2) It is compulsory that the reclamation of a forest area which is formerly a mining area should be implemented by the holder of a mining license in accordance with the stages of the mining activities.

(3) Parties using a forest area for purposes beyond forestry activities causing changes in land surface and resulting in land covering are obligated to pay reclamation and rehabilitation bonds.

(4) Further provisions as meant in sub-articles (1), (2) and (3) will be regulated in a government regulation.

Part Five
Forest Protection and Nature Conservation

Article 46

The implementation of forest protection and nature conservation is aimed at maintaining the forests, forest areas and their environment so that their functions of protection, conservation and production may be performed in an optimum and sustainable manner.

Article 47

The protection of forests and forest areas constitutes undertakings to:

Article 48

(1) The government regulates forest protection, both inside and outside forest areas.

(2) Forest protection in a state's forest is implemented by the government.

(3) Holders of forest utilization business licenses as meant in Article 27 and Article 29 and parties receiving forest management authority as meant in Article 34 will be obligated to protect the forests in their working areas.

(4) Forest protection in a titled forest will be conducted by the title holder.

(5) To guarantee that forest protection will be implemented in the best manner possible, the community will be involved in efforts to undertake forest protection.

(6) Further provisions as meant in sub-articles (1), (2), (3), (4) and (5) will be regulated in a government regulation.

Article 49

Title or license holders will be responsible for forest fires in their working areas.

Article 50

(1) Everyone is prohibited to damage forest protection infrastructure and facilities.

(2) everyone granted an area utilization business license, an environmental service utilization business license, a timber and non-timber forest product utilization business license will be prohibited to undertake activities causing forest damage.

(3) Everyone is prohibited to:

(4) The provision on taking out, carrying and or transporting protected plants and or animals is regulated pursuant to the prevailing laws.

Article 51

(1) To guarantee the implementation of forest protection certain forestry officials, in accordance with the nature of their jobs, will be granted specific police authority.

(2) Officials granted specific police authority as meant in sub-article (1) are authorized to:

CHAPTER VI
FORESTRY RESEARCH AND DEVELOPMENT, EDUCATION AND TRAINING, AND COUNSELLING

Part One
General

Article 52

(1) Sustainable forest management requires human resources with a good quality characterized by mastery of science and technology based on the faith in and devoutness to God the Almighty through the implementation of forestry research and development, education and training and counselling in a sustainable manner.

(2) In implementing forestry research and development, education and training and counselling, it is compulsory that science and technology, traditional wisdom and the socio-cultural condition of the community should be taken into account.

(3) In implementing forestry research and development, education and training and counselling, the government is obligated to prevent the wealth of uniquely Indonesian germ plasma from being stolen.

Part Two
Forestry Research and Development

Article 53

(1) Forestry research and development are aimed at developing national capacity and the culture of science and technology in forest management.

(2) Forestry research and development are aimed at promoting the capacity in forest management in translating into reality sustainable forest management and increasing the added value of forest products.

(3) The implementation of forestry research and development will be undertaken by the government and may be conducted in cooperation with universities, the business world and the community.

(4) The government will encourage and create a condition conducive to the improvement of the capacity and to control, develop and utilize the science and technology in forestry.

Article 54

(1) The government, along with the business world and the community, will publish the result of forestry research and development and develop a system of information and services on the result of the forestry research and development.

(2) The government is obligated to protect the discoveries made in science and technology in the forestry sector pursuant to the prevailing laws.

(3) A license to undertake forestry researches in Indonesia may be granted to foreign researchers with reference to the prevailing laws.

Part Three
Forestry Education and Training

Article 55

(1) Forestry education and training are aimed at developing and promoting the quality of human resources in forestry characterized by skill, professionalism, dedication, honesty and lofty character.

(2) Forestry education and training are aimed at establishing human resources with a mastery and capability of utilizing and developing science and technology in just and sustainable forest management based on faith in and devoutness to God the Almighty.

(3) The implementation of forestry education and training will be undertaken by the government, the business world and the community.

(4) The government will encourage and create a condition conducive to the implementation of forestry education and training in the framework of promoting the quantity and quality of human resources.

Part Four
Forestry Counselling

Article 56

(1) Forestry counselling is aimed at promoting knowledge and skills and changing the attitude and behaviour of the community so that they will be willing and able to support forestry development on the basis of the faith in and devoutness to God the Almighty and the awareness of the significance of forestry resources to human life.

(2) The implementation of forestry counselling will be undertaken by the government, the business world and the community.

(3) The government will encourage an create a condition conducive to the implementation of forestry counselling activities.

Part Five
Financing and Infrastructure

Article 57

(1) The business circles in the forestry sector will be obligated to provide investment funds for research and development, education and training and counselling in forestry.

(2) The government will allocate forest areas to be used for and support the activities of research and development, education and training and counselling in forestry.

Article 58

Further provisions on research and development, education and training and counselling in forestry will be regulated in a government regulation.

CHAPTER VII
SUPERVISION

Article 59

Forestry supervision is aired at observing, tracing and evaluating the implementation of forest management so that its purpose may be achieved maximally and at the same time constitutes a feedback for further improvement and or betterment of forest management.

Article 60

(1) The government and regional administrations are obligated to undertake forestry supervision.

(2) The community and or individuals will participate in forestry supervision.

Article 61

The government is obligated to undertake supervision over forest management undertaken by a regional administration.

Article 62

The government, regional administrations and the community will undertake supervision over forest management and or utilization undertaken by a third party.

Article 63

In implementing forestry supervision as meant in Article 60 sub-article (1), the government and regional administrations are authorized to undertake monitoring, ask for information and undertake supervision over the implementation of forest management.

Article 64

The government and the community will undertake supervision over the implementation of forest management with national and international impacts.

Article 65

Further provisions on forestry supervision will be regulated in a government regulation.

CHAPTER VIII
DELEGATION OF AUTHORITY

Article 66

(1) In the framework of forestry affairs operation, the government will delegate some of its authority to regional administrations.

(2) The implementation of the delegation of some of the authority as meant in sub-article (1) is aimed at promoting the effectiveness of forest management in the framework of the development of regional autonomy.

(3) Further provisions as meant in sub-articles (1) and (2) will be regulated in a government regulation.

CHAPTER IX
COMMUNITY UPHOLDING CUSTOMARY LAWS

Article 67

(1) The community upholding customary laws, as far as in actuality they still exist and their existence is recognized, will be entitled to:

(2) Confirmation of the existence and the abolition of a community upholding customary laws as meant in sub-article (1) will be stipulated in a regional regulation.

(3) Further provisions as meant in sub-articles (1) and (2) will be regulated in a government regulation.

CHAPTER X
COMMUNITY PARTICIPATION

Article 68

(1) The community is entitled to enjoy environmental quality produced by a forest.

(2) Other than the rights as meant in sub-article (1) the community may:

(3) The community inside and around a forest will be entitled to obtain compensation because of the loss of their access to the surrounding forest as a means of livelihood to fulfil the needs in their lives as a result of the stipulation of a forest area, pursuant to the prevailing laws.

(4) Everyone is entitled to obtain compensation because of the loss of the title over their own land as a result of the stipulation of a forest area pursuant to the prevailing laws.

Article 69

(1) The community will be obligated to take part in looking after a forest area and preventing it from being disturbed and damaged.

(2) In implementing forest rehabilitation, the community may apply to non-government institutions, other parties or the government for service assistance and support.

Article 70

(1) The community will take part in forestry development.

(2) The government is obligated to encourage the participation of the community through various efficient and effective activities in the forestry sector.

(3) In the framework of boosting the participation of the community the government and regional administration may be assisted by a forum of forestry observers.

(4) Further provisions as meant in sub-articles (1) and (2) will be regulated in a government regulation.

CHAPTER XI
CLASS ACTION

Article 71

(1) The community is entitled to file a class action to the court and or report to law enforcers forest damage harming the life of the community. .

(2) The right to file a class action as meant in sub-article (1) will be confined to the lawsuit over forest management which does not conform to the prevailing laws.

Article 72

If it is known that the community suffers from forest pollution and or damage in such a way that the life of the community is affected, government institutions or the institutions of regional administrations responsible in the forestry sector may take action in the interest of the community.

Article 73

(1) In the framework of exercising the responsibility in forest management, the organizations in the forestry sector will be entitled to file a class action in the interest of conserving the functions of forests.

(2) The organizations in the forestry sector entitled to file a class action as meant in sub-article (1) must fulfil the following requirements:

CHAPTER XII
SETTLEMENT OF FORESTRY DISPUTES

Article 74

(1) The settlement of forestry disputes may be sought through the court or out of court on the basis of a voluntary choice of the disputing parties.

(2) If an effort to settle a forestry dispute out of court is chosen, the lawsuit through the court may be filed after the disputing parties fail to reach an agreement.

Article 75

(1) The settlement of forestry disputes out of court will not apply to criminal acts as regulated in this law.

(2) The settlement of forestry disputes out of court is aimed at reaching an agreement on the return of a particular right, the amount of compensation and or the kind of act which must be taken to restore the functions of a forest.

(3) In settlement of forestry disputes nut of court as meant in sub-article (2), services from a third party appointed Jointly by the parties and or assistance rendered by non-government organizations may be used to help settle forestry disputes.

Article 76

(1) The settlement of forestry disputes through the court is aimed at obtaining a ruling on the return of a right, the amount of compensation and or a particular act which Must be taken by the losing party in the dispute.

(2) In addition to the ruling on a particular act to take as meant in sub-article (1), the court may stipulate the payment of coercion money any arrears in the implementation of the said particular act every day.

CHAPTER XIII
INVESTIGATION

Article 77

(1) Other than investigating officers of the Police Force of the State of the Republic of Indonesia, certain civilian civil servant officials whose scope of duty and responsibility encompasses forest management will be specialty authorized as investigators as meant in the Criminal Procedural Code.

(2) Civilian civil servant officials as meant in sub-article (1) will be authorized to:

(3) Civilian civil servant investigating officials as meant in sub-article (1) will notify the beginning of an investigation and submit the result of their investigation to a public prosecutor, pursuant to the Criminal Procedural Code.

CHAPTER XIV
CRIMINAL PROVISIONS

Article 78

(1) Whoever deliberately violates the provisions as meant in Article 50 sub-article (1) and Article 50 sub-article (2) will be threatened with the punishment of a maximum imprisonment of 10 (ten) years and a maximum fine of Rp 5,000,000,000.00 (five billion Rupiah).

(2) Whoever deliberately violates the provisions as meant in Article 50 sub-article (3) letters a, b or c, will be threatened with the punishment of a maximum imprisonment of 10 (ten) years and a maximum fine of Rp 5,000,000,000.00 (five billion Rupiah).

(3) Whoever deliberately violates the provision as meant in Article 50 sub-article (3) letter d will be threatened with the punishment of a maximum imprisonment of 15 (fifteen) years and a maximum fine of Rp 5,000,000,000.00 (five billion Rupiah).

(4) Whoever, owing to his negligence, violates the provision as meant in Article 50 sub-article (3) letter d will be threatened with the punishment of a maximum imprisonment of 5 (five) years and a maximum fine of Rp 1,500,000,000.00 (one billion five hundred million Rupiah).

(5) Whoever deliberately violates the provision as meant in Article 50 sub-article (3) letter e or letter f will be threatened with the punishment of a maximum imprisonment of 10 (ten) years and a maximum fine of Rp 5,000,000,000.00 (five billion Rupiah).

(6) Whoever deliberately violates the provisions as meant in Article 38 sub-article (4) or Article 50 sub-article (3) letter 8, will be threatened with the punishment of a maximum imprisonment of 10 (ten) years and a maximum fine of Rp 5,000,000,000.00 (five billion Rupiah).

(7) Whoever deliberately violates the provision as meant in Article 50 sub-article (3) letter h will be threatened with the punishment of a maximum imprisonment of 5 (five) years and a maximum fine of Rp 10,000,000,000.00, (ten billion Rupiah).

(8) Whoever violates the provision as meant in Article 50 sub-article (3) letter I will be threatened with the punishment of a maximum imprisonment of 3 (three) months and a maximum fine of Rp 10,000,000.0o (ten million Rupiah).

(9) Whoever deliberately violates the provision as meant in Article 50 sub-article (3) letter j will be threatened with the punishment of a maximum imprisonment of 5 (five) years and a maximum fine of Rp 5,000,000,000.00 (five billion Rupiah).

(10) Whoever deliberately violates the provision as meant in Article 50 sub-article (3) letter k will be threatened with the punishment of a maximum of 3 (three) years in prison and a maximum fine of Rp 1,000,000,000.00 (one billion Rupiah).

(11) Whoever deliberately violates the provision as meant in Article 50 sub-article (3) letter I will be threatened with the punishment of a maximum imprisonment of 3 (three) years and a maximum fine of Rp 1,000,000,000.00 lone billion Rupiah).

(12) Whoever deliberately violates the provision as meant in Article 50 sub-article (3) letter m will be threatened with the punishment of a maximum imprisonment of 1 (one) year and a maximum fine of Rp 50,000,000.00 (fifty million Rupiah).

(13) Criminal acts as meant in sub-articles (1), (2), (3), (4), (5), (6) , (7), (9), (10) and (11) are crimes and the criminal acts as meant in sub-articles (8) and (12) are violations.

(14) In the case of criminal acts as meant in Article 50 sub-articles (1), (2) and (3), if they are committed by and or on behalf of statutory bodies or business undertakings, the charges and the criminal sanctions will be addressed to the management, either individually or jointly, while the punishment will conform to the threat of punishment of each plus 1/3 (one third) of the punishment passed.

(15) All forest products resulting from crimes and violations and or the equipment, including the transportation equipment used to commit the crimes and or violations as meant in this article, will be seized for the State.

Article 79

(1) State's assets in the form of forest products and other goods in the form of both discovered and or seized goods resulting from crimes or violations as meant in Article 78 will be auctioned for the State.

(2) The parties with merit in efforts to save State's assets as meant in sub-article (1) will be given an incentive, which will be set aside from the proceeds of the said auction.

(3) Further provisions as meant in sub-article (2) will be regulated by the Minister.

CHAPTER XV
COMPENSATION AND ADMINISTRATIVE SANCTIONS

Article 80

(1) Every act in violation of the laws regulated in this law, regardless of the criminal sanctions as regulated in Article 78, obliges the party responsible for the act to pay compensation in accordance with the extent of damage or the consequence caused to the State for costs of rehabilitation, forest condition restoration or other necessary acts.

(2) Every holder of a business license for are utilization, a business license for environmental service utilization, a business license for forest product utilization or a license for the collection of forest products regulated in this law will be subject to an administrative sanction if they violate the provisions outside the criminal provisions as regulated in Article 78.

(3) Further provisions as meant in sub-articles (1) and (2) will be regulated in a government regulation.

CHAPTER XVI
TRANSITIONAL PROVISIONS

Article 81

Forest areas already appointed and or stipulated on the basis of the prevailing laws prior to the enforcement of this law will remain valid on the basis of this law.

Article 82

All enforcement regulations of the existing laws in the forestry sector will remain effective until the issuance of enforcement regulations based on this law as far as they do not contradict this law.

CHAPTER XVII
CLOSING PROVISIONS

Article 83

When this law comes into effect,

Article 84

This law will take effect as from the date of promulgation.
For public cognizance, this law will be promulgated by publishing it in the Statute Book of the Republic of Indonesia.

Ratified in Jakarta
On September 30, 1999

PRESIDENT OF THE REPUBLIC OF INDONESIA
sgd.
BACHARUDDIN JUSUF HABIBIE

Promulgated in Jakarta
On September 30, 1999

THE MINISTER/STATE SECRETARY OF THE REPUBLIC OF INDONESIA
sgd.
MULADI