Since the Indonesian people inherit and receive natural resources in the form of invaluable forests as the blessing and mandate from God the Almighty, the forests must be managed and utilized properly on the basis of noble characters, as worship and manifestation of our thankful for God the Almighty.
In the framework of forest management and in order to obtain optimal benefit from forests and forest areas for the welfare of the society, principally all forests and forest areas can be managed by observing their nature, characteristics and priority as well as not changing their principal functions, namely conservation, protection and production functions. In relation thereto, the balance of the three functions needs to be maintained in the forest management.
With the enforcement of Law No. 41/1999 on forestry affairs, Articles 22, 27, 29, 33, 34, 36, 37 and 38 regulating forest arrangement and formulation of plans for the management of forests, forests and forest areas can be utilized by issuing business licenses to utilize areas, environmental services, timber forest products and non-timber forest products and licenses to collect timber forest products and non-timber forest products as well as licenses to lease forest areas. As a result, in addition to rights to utilize, license holders also must be responsible for all kinds of disturbances and damages of forests and forest areas entrusted to them.
In the convertible production forests and utilization of forest areas under the leasehold status, licenses to utilize timber and non-timber forest products can be is sued in accordance with the provisions on business licenses to utilize timber and non-timber forest products as stipulated in this government regulation.
State-owned enterprises (BUMN), regional administration-owned enterprises (BUMD) and Indonesian private-owned enterprises (BUMS) and cooperatives securing business licenses in the forestry affairs are obliged to cooperate with local community cooperatives and periodically empower the institutions to become solid, independent, professional cooperative business units so as to be on par with other economic players.
In order to ensure that the utilization of forests can achieve the expected objectives and targets, the government and regional governments are obliged to supervise.
In order to provide a legal foundation for the implementation of forest arrangement and formulation of plans for the management of forests, the utilization of forests and use of forest areas on the basis of a just principle needs to be stipulated by a government regulation.
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Activities of forest management include :
This government regulation only regulates the forest arrangement and formulation of plans for the management of forests as well as utilization of forests and the use of forest areas, while activities of forest rehabilitation and reclamation as well as forest protection and natural conservation are regulated by a separate government regulation.
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The delegation of activities of forest arrangement and formulation of plans for the management of forests, utilization of forest and use of forests in areas or forests of certain activities is based on the consideration about the close link of regional characteristics, social and environmental conditions and forest to forest conservation and public interests that need specific managerial capability.
The delegation of authority to the state-owned enterprises excludes from the public authority or general administration authority.
Forest arrangement and formulation of plans for the management of forests, utilization of forests and use of forest area, for special purposes can be stipulated in conservation, protected or production forests.
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Forest arrangement and formulation of plans for the management of forests, utilization of forests and use of forest areas for special purposes are executed by using the licenses as regulated in this government regulation.
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Forest arrangement constitutes the initial activity in the management of forests, covering the designing of management units by observing rights of communities and forest conditions, classification of forest resources in accordance with ecosystems and forest potentials and division of blocks into clusters.
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Clause a
Arrangement of natural reserve forests by designing natural borders and their existence is not allowed to result in changes, remains original in accordance with the initial condition of the said natural reserve habitat.
Clause b
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The determination of borders of the management areas which are arranged is based on maps of management units.
The management plan can be accompanied by stipulation of lay out of areas reflecting the enhancement of efficiency of functions, such as permanent location for monitoring biological resources and ecosystem in interests of educational research and natural sciences, including locations of research management and educational facilities.
The division of areas into blocks is adjusted to potentials and conditions of areas, which, among others, consist of habitat rehabilitation blocks, population rehabilitation blocks, animal habitat and population fostering blocks and other blocks adjusted to the need of biological resource conservation and their ecosystems.
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Clause a
Core zone constitutes part of national park areas which only can be utilized for interests of research and development supporting the utilization, science, education and/or cultivation supporting activities and as source of microorganism.
Clause b
Utilization zone constitutes part of national park areas which only can be utilized for operational activities of natural tourism and recreation, research and development supporting the utilization, education and/or cultivation supporting activities.
Clause c
Other zones are zones outside the core and utilization zones which due to their functions and conditions, are stipulated as certain zones such jungle zones, traditional utilization zones, rehabilitation zones and others.
See explanation of Article 7 paragraph (2)
Clause a
Utilization blocks are designated to activities of natural tourism, including the building of tourism facilities and infrastructures.
Clause b
Plant collection blocks are designated to collections of plants.
Clause c
Protection blocks are designated to protection of plants and animals from the influence of the said activities.
Clause d
Other blocks are part of universal forest-park areas of the other condition thus needing special treatment, such as traditional utilization blocks, rehabilitation blocks and others.
See explanation of Article 7 paragraph (2).
Clause a
Intensive utilization blocks constitute part of natural tourism parks utilized for natural tourism activities, including fulfillment of their facilities and infrastructures.
Clause b
Limited utilization blocks constitute part of natural tourism parks utilized for natural tourism activities with special or certain activities.
Clause c
Other blocks are part of natural tourism parks whose condition and potential need to be functioned specifically, such as protection and rehabilitation blocks.
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Clause a
Hunting blocks constitute part of hunting park areas designated to hunting activities.
Clause b
Utilization blocks constitutes part of hunting park areas designated to activities of fulfillment of hunting tourism facilities and infrastructures.
Clause c
Other blocks are part of hunting park areas with the field condition designated to special activities, such as security for animals or people.
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Clause a
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Clause b
Activities of utilization of forests and use of forest are possible to execute in utilization blocks.
Clause c
Activities of rehabilitation of forest damages resulting from forest fire or forest destructive activities are possible to execute in other blocks.
Clause a
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Clause b
Results of the inventory are contained in minutes used for interests of forest arrangement and formulation of plans for forest management, exploitation of forests and use of forest areas.
Clause c
Making minutes of production forests constitutes an activity to prepare inventory in the framework of collecting data on conditions, potentials and other data in blocks and clusters.
Clause d
Production forests are divided into blocks by observing potentials and conditions of forests in the framework of exploitation of forests, use of forest areas, reclamation of forests as well as protection of forests and natural conservation.
The division of areas into blocks and the division of blocks into clusters are in accordance with potentials and conditions of forests.
Clause e
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Clause f
Opening of forest areas constitutes an activity of development of infrastructures of forest management and is not logging activities but constitutes an activity to facilitate the implementation of forest management, such as road for the purpose of inspection or patrol.
Clause g
Registration constitutes an activity of recording of results of making of compartments, minutes and opening of forest areas.
Clause h
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Criteria for eternal forest management cover economic, social and ecological aspects that include:
a. stable forest areas;
b. sustainable production;
c. social benefits to communities living around forests; and
d. the environment supporting the life buffer system.
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Exploitation of forests in conservation forests includes:
The legislation in force is the legislation effective in the eco-tourism management field in utilization zone of national parks, universal forest parks, eco-tourism parks, and hunting of hunted animals.
Exploitation of forests in protected forests aims at enhancing welfare of communities, particularly communities living around forests and at the same time raising public awareness of maintaining and enhancing functions of protected forests as a mandate to realize natural resource and environmental conservation for the current and next generations.
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In a decision on the issuance of business license to utilize areas in protected forests, the utilization of areas can include activities of cultivation of medicinal herbs, decorative plants, mushroom and honey production.
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In order to support the enrichment of wild animals in protected forests, facilities and infrastructures in the form of stalls and semi-natural facilities and infrastructures can be built.
Wild animals used for the enrichment business are obtained from nature in accordance with laws in force.
Swallow breeding business is executed naturally in, among others, caves without building facilities and infrastructures.
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Clause a
Eco-tourism business is a business using potentials of landscape convenience and beauty. Semi-permanent facilities and infrastructures can be built in the ecotourism business.
Clause b
In operating the challenging sport business, licensees can use natural facilities and infrastructures and are prohibited from building facilities and infrastructures.
The challenging sport business in protected forests includes sport business of mountain bicycle, rapids crossing, mountain side and mountain climbing.
Clause c
Water exploitation business is applied to springs coming out naturally. In order to support the water exploitation business, only water channeling facilities in the form of pipe can be built, while water processing facilities are built outside protected forests.
Water exploitation business does not include exploitation of water for non-commercial purposes and/or daily life of communities living around the forests.
Clause d
Carbon trading business is a business to provide services for absorbing and/or storing carbon by forests, including the maintenance, preservation and rehabilitation of forest ecosystems.
Carbon trading business can be executed in all forest functions in state forest and/or right forests.
Carbon trading business can be executed by the government and carbon emission industries in form of both investments in projects for enhancing capacity of carbon absorption and/or storage, preventing carbon emission from forests and compensation for the lost of other benefits in connection with the provision of the said services.
Clause e
Forest and environment rescuing business is a business in the form of rehabilitation and/or rescue of areas and land.
Forest and environment rescuing business constitutes a non-commercial business or compensation for rescuing or repairing the environment.
Collection of non-timber forest products in protected forests only can be done by communities living around the forests for fulfilling their daily economic life.
Hunting of wild animals in protected forests is basically a business to hunt potentials of unprotected wild animals.
In order to fulfill the daily need of communities living around forests, traditional hunting by using traditional tools can be done.
The said legislation is the legislation effective in the field of biological resource conservation and their ecosystems.
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Including into permits which cannot be issued in areas already burdened by forest exploitation license is license to collect forest products subjected to the limit of volume.
For example, other licenses cannot be issued to part of protected forest areas having landscape beauty and/or uniqueness for the development of eco-tourism and issuance of environmental-service business license.
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The certain quantity is applied to every kind of non-timber forest products, such as honey, rattan and others.
Locations are not overlapping with business licenses to utilize areas and/or environmental services of eco-tourism business.
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Clause a
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Clause b
In order to maintain the conservation of forest pro-ducts, the collected non-timber forest products may not exceed the potential of growth available in nature.
Clause c
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Forest exploitation business in production forests in the form of cultivation of medicinal herbs, decorative plants, food crops, mushroom and honey production can be granted in one license.
Processing and marketing activities are executed outside production forests.
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Facilities and infrastructures in the form of fence and base camp can be built for animal cultivation or breeding business in production forests.
Wild animals used for the cultivation or breeding business can be obtained from nature in accordance with legislation in force.
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Clause a
Eco-tourism business includes business to utilize potential of landscape and natural beauty.
Eco-tourism business in production forest is allowed to build eco-tourism facilities and infrastructures.
Clause b
Challenging sport business in protected forests include sport business of mountain cycle, rapid crossing, mountain side and mountain climbing.
Facilities and infrastructures can be build in the operation of challenging sport business.
Clause c
Water exploitation business is applied to water flowing out of or passing forests naturally and the business can be executed by building water collection and distribution facilities and infrastructures.
Clause d
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Clause e
Forest and environmental rescue business is business in the form of rehabilitation and/or rescue of areas and land.
Forest and environmental rescue business is not a commercial business or compensation for rescuing or repairing the environment.
Clause a
Timber and/or non-timber forest -product exploitation business in natural forests was previously called Forest Concession (HPH). Timber forest-product exploitation business in natural forests is basically provided for felling wood and non-wood by means of selective felling on the basis of forest conservation, with the obligation to rejuvenate naturally and artificially and maintain forests.
Clause b
Timber and/or non-timber forest-production exploitation business in timber estate was previously called Timber Estate Concession (HPHT) or Industrial Timber Estate Concession (HPHTI). At the moment of harvesting of products, timber and non-timber forest-product exploitation business in timber estate is basically executed by means of complete felling with replanting or is the same as the definition of complete felling with artificial rejuvenation.
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Non-timber plants are in the form of sago, bamboo, rattan and others.
Clause a
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Clause b
Mixed plants are plants being combination of kinds of forest plant commodities.
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Related institutions are, among others, institutions responsible in the energy and mineral resource field.
The volume allowed w the collection of timber forest products is adjusted to the need for house or public facilities.
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Being handed over is only limited to transaction.
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The period is adjusted to the plan for kinds of principal plants.
Clause a
The quantity excludes those resulting from felling waste and trees felling naturally.
Clause b
The quantity and weight of the respective kinds are adjusted to potentials of non-timber forest products.
Individuals given business license to utilize area or license to collect are individuals in or around the forests.
The cooperatives, mean local community cooperatives operating m the forestry business.
Clause a
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Clause b
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Clause c
License to utilize environmental services in the form of rehabilitation and rescue of areas and land or repair of the environment can be issued to investors or foreign investors being limited liabilities companies in the form of Indonesian statutory body.
Clause d
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Business license to utilize timber forest products in timber estate can be issued to investors or foreign investors being limited liabilities companies in the form of Indonesian statutory body.
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The minister can delegate in phases and selectively the authority to issue business licenses to utilize timber forest products in natural forests or business license to utilize timber forest products in timber estate to regions, dependent on the readiness of the relevant regions m the institutional aspect, vision or mission.
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Clause a
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Clause b
The real activities mean the supply of mechanical equipment minimally as high as 50% of the equipment units stipulated in the working areas as well as the build mg of facilities and infrastructures, in the case of holders of business licenses to utilize timber forest products.
Clauses c
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Clauses d
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Clause e
Forest protection includes:
Clause f
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Clause g
The forestry professionals mean forestry scholars and middle-level technical personnel that include graduates of Senior High Forestry School (SKMA), Forestry Diplomas and personnel graduating from forestry educational and training courses, such as grader, cruiser and scaler.
Other personnel mean experts in the environmental, social, economic and legal affairs.
Clause h
PSDH is paid before the forest products are carried or processed or used.
Contribution to business license to utilize forest is paid fully before the license is issued.
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Clause a up to e
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Clause f
The silvycultur system is a forest cultivation system or planting technique starting from the selection of seeds or offsprings, seedling, planting, maintenance of plants and harvesting.
Clause g
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Clause a
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Clause b
Business cooperation in segment of activities of forest-product exploitation business is in the form of business activities, such as the arrangement of borders of working areas, border of working blocks and clusters, opening of forest areas, felling or harvesting of forest products, land preparation, perfection, making inventory of potentials of forest products, procurement of seeds and offsprings, planting and enrichment, clearing, transport, processing of forest products, marketing of forest products and other supporting activities.
Paragraph 8
Some 50% (fifty percent) of the total size of plant areas which must be planted over 5 (five) years means:
50% x 5 years x the size of area
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Circle (Year)
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Burdened by land title/right can be in the form of certificate, such as proprietary right, right to use land for business purpose and right to use.
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Clause a
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Clause b
Field inspection is executed firstly before the license is revoked.
Clause c
The written statement is accompanied by sufficiently clear reasons.
Clause d
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Clause a
In the case of licensees not yet settling their financial liabilities upon the expiration or revocation of then licenses, the government or regional governments can take coercive actions such as confiscation of movable goods belonging to the licensees in accordance with laws m force.
Clause b
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Movable goods still belong to licensees.
The third parties include creditors and business partners.
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Local communities are communities living in and; or around forests that constitute an unit of social community based on the similarities in the source of earning de pendent on forests, history, domicile commitment as well as regulation of collective life order in an institutional forum.
Empowerment of local communities constitutes efforts to enhance the capability and independence in utilizing forests.
The empowerment can be realized through socially beneficial forests.
Facilitation by the government and/or regional government is executed in accordance with the respective scopes of authority, such as recognition to legality status, institutional fortification, production counseling, technology counseling, education and training, access to the market as well as the granting of rights in the utilization.
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Forest-product primary industry is the forest-product upstream industry as meant in Law No. 41/1999 on forestry affairs. The efficient use of raw materials means the use of raw materials for minimizing waste and producing highly valuable products.
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In order to meet the need for raw materials of the forest- product primary industry, the eternally supporting capability of forests must be observed.
In certain cases aiming at enhancing competitiveness, raw materials of the primary industry can originate from import.
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Timber sewing industry with a production capacity of up to 2,000 (two thousand) cubic meters per annum is only designated to the fulfillment of domestic need.
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Supply of timber raw materials can originate from:
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Technical consideration of the Minister is provided in the framework of ensuring the sustainable supply of raw materials.
Consideration of governors i provided in the framework of synchronizing regional development and expansion.
The business certainty means certainty for business activities, certainty for business time and certainty for legal guarantee for business.
Clause a
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Clause b
Parties obliged to formulate and convey RPBBI are industries processing timber and non-timber forest products directly. RPBBI constitutes a raw-material supply controlling system.
Clause c
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Clause d
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Based on land title/right means evidence of land title, such as certificate (certificate of proprietary right, right to use for business purposes and right to use).
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Institutional development is executed through activities of counterpart, service and support in the form of technical assistance, training as well as financial aid.
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Clause a
The strategic development is activities of the use of forest areas having considerable influence on the advancement of national economy, public welfare of both the current and next generations and/or in the framework of maintaining the integrity of territory of the Unitary State of the Republic of Indonesia.
Clause b
Limited public interests are interests of all layers of communities whose development is executed and owned by government institutions or groups of communities and not used for profit taking.
Clauses a
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Clauses b
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Clause c
Mining activities include general, oil and gas and geothermal mining activities.
Clause d
The electricity activity is everything related to the provision (generation and distribution) and utilization of electrical energy. Renewable-energy technology installations include Solar Power Plants (PLTS), Wind Power Plants (PLTB), Mini-hydro Power Plants (PLTMO and Micro-hydro Power Plants (PLTMH) as well as geothermal utilization.
Clause e
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Clause f
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Forest-product administration includes administrative activities of production planning, harvesting or felling, marking, measuring and testing, transport/circulation and collection, processing and reporting.
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Forest products originating from right forests include wood coming from land not burdened by land title.
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Heads of villages of officials of the same level must issue the certificates of origin.
Accompanied collectively means that the transport, control or possession of forest products must be accompanied and completed physically by legitimate documents at the same time and place, as evidence, and cannot be supplemented (at the same time and place) physically.
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Clause a and b
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Clause c
The certificate of origin applies to wood and non wood originating from plantations, compounds and secondary crops.
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The export is banned for reducing pressure on forests.
Forest products are marketed to meet the need for raw materials of industries and communities in the framework of eternal forest management.
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Illegitimate forest products can have the status of finding, confiscation or seizure.
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The policy is a regulation or stipulation of guidelines in activities of forest arrangement and formulation of plans for the management of forests, utilization of forests and the use of forest areas.
The third parties mean BUMN, BUMD, BUMS, individuals and cooperatives.
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The success of eternal forest management is reflected by the performance of forest management evaluated by criteria and indicators of eternal forest management, which is proven by certificate of eternal forest management by independent appraisal institutions accredited by the Minister.
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The warning constitutes an initial step as the basis for correction or imposition of sanctions.
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License to utilize forests is revoked unless the licensing procedure is according to this government regulation.
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The sanction is imposed on the basis of the weight of their violations. Violations of the serious category are subjected to a sanction of revocation, violations of the moderate category are subjected to reduction of working areas, those of the light category are subjected to administrative sanction in the form of fine, while violations of the lighter category are subjected to sanction of suspension of activities and/or administrative service.
In order to realize the good public-administration principles, the imposition of sanction in the form of revocation on licensees committing violations of the serious category or reduction of working areas on those committing violations of the moderate category must be preceded by the issuance of warnings 3 (three) times consecutively.
The fulfillment of the imposed sanction does not abolish obligations of licensees to pay forestry levies in accordance with the provisions.
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Clause a
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Clause b
Working equipment which is used must not cause impacts on forest damage and conservation.
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Clause a
Holders of business license to utilize areas or business licenses to use environmental services are not subjected to administrative sanction m the form of reduction of working areas as high 20% at the maximum, as long as the licensees can prove that the failure to fulfill the obligation is attributable to force majeure.
Force majeure includes natural disaster and/or fire.
Clause b
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Clause a
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Clause b
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Clause c
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Clause d
Criteria for leaving working areas or jobs before the license expires are as follow:
Clause e
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Clause f
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Clause a
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Clause b
Report on the Change in Processed Forest-Products (LMHHO) is a report containing supply, stock, domestic and foreign marketing as well as the use of processed forest-products for self-consumption.
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Clauses a
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Clauses b
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Clause c
Environmental damages exceeding the tolerable limit of the quality of the environment are subjected to sanctions in accordance with legislation in force.
Clauses d
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Clauses e
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