JOINT DECREE OF
THE MINISTER OF FORESTRY
No. 1132/KPTS-II/2001
AND
THE MINISTER OF INDUSTRY AND TRADE
No. 292/MPP/KEP/10/2001

CONCERNING
DISCONTINUATION OF LOG/CHIP RAW MATERIAL EXPORTS

THE MINISTER OF FORESTRY AND THE MINISTER OF INDUSTRY AND TRADE,

Considering :

• a. that policies on the export of logs/chip raw materials have been misused by illicit timber companies and illegal traders that threaten the conservation of forestry resources and the environment;
• b. that is this connection, it is necessary to stipulate a policy to put an end on the export of logs/chip raw materials.

In view of :

• 1. Law No. 5/1990 on the conservation of bio-natural resources and their ecosystem (Statue Book of 1990 No. 49, Supplement to Statute Book No. 3419);
• 2. Law No. 7/1994 on the ratification of Agreement Establishing The World Trade Organization (Statue Book of 1994 No. 57, Supplement to Statute Book No. 3564);
• 3. Law No. 10/1995 on customs (Statue Book of 1995 No. 75, Supplement to Statute Book No. 3612);
• 4. Law No. 41/1999 on forestry (Statue Book of 1999 No. 167, Supplement to Statute Book No. 3888);
• 5. Presidential Decree No. 228/M/2001 on the formation of the Mutual-Help Cabinet.

DECIDES:

To Stipulate:

THE JOINT DECREE OF THE MINISTER OF FORESTRY AND THE MINISTER OF INDUSTRY AND TRADE ON THE DISCONTINUATION OF LOG/CHIP RAW MATERIAL EXPORTS

Article 1

(1) The export of logs/chip raw materials from the whole territory of the Republic of Indonesia shall be stopped.

(2) The stoppage as referred to in paragraph (1) shall be valid until the time limit stipulated later on.

Article 2

Referred to as :

(1) Log shall be part of tree cut into a trunk or trunks excluding branch or twig, with a minimum diameter of 30 cm and with the length not limited, of all types of wood contained in headings number 4403.

(2) Chip raw material (BBS) shall be wood with a diameter of 29 cm or below and with the length not limited, of all types of wood contained in headings number 4403 up to 4404.

(3) Export shall be the act of releasing goods from the customs area.

(4) Log/chip raw material exporter shall be corporate body already obtaining a recommendation of fulfilling special requirements to export logs/chip raw materials and notification on export plan.

Article 3

(1) All recommendation of fulfilling special requirements to export logs/chip raw materials issued by the Ministry of Forestry without notification on export plan issued by the Minister of Industry and Trade shall be declared null and void.

(2) All notifications on export plan issued by the Minister of Industry and Trade without L/C (Letter of Credit) from a foreign buyer shall be declared null and-void.

Article 4

Log/chip raw material exporters that are already in possession of L/C from a foreign buyer, before the stipulation of this joint decree, shall :

• 1. report their export plan to the Ministry of Industry and Trade and the Ministry of Forestry;
• 2. realize their export no later than October 31, 2001.

Article 5

Violation of Article 1 of this joint decree shall lead to the imposition of criminal sanction pursuant to Law No. 10/1995.

Article 6

This joint decree shall begin to take effect on the date of stipulation.

Stipulated in Jakarta
On October 8, 2001
THE MINISTER OF INDUSTRY AND TRADE
Sgd.
RINI M.S. SOEWANDI
THE MINISTER OF FORESTRY
Sgd.
MUHAMMAD PRAKOSA