-
7/31/2019 34_02_en
1/49
AUTHORIZED TRANSLATION
[NATIONAL CREST]PRESIDENT OF THE REPUBLIC OF INDONESIA
GOVERNMENT REGULATION OFTHE REPUBLIC OF INDONESIA
NUMBER 34 OF 2002REGARDING
FOREST ARRANGEMENT AND FOREST MANAGEMENT,FOREST UTILIZATION AND FOREST AREA USE PLANNING
THE PRESIDENT OF THE REPUBLIC OF INDONESIA,
Considering : that for implementation of Chapters V, VII and XV of Law Number 41 of 1999regarding Forestry, it is necessary to issue Government Regulation on ForestManagement and Forest Management, Forest Utilization and Forest AreaUse Planning.
In view of : 1. Article 5 paragraph (2) and Article 33 paragraph (3) of Constitution 1945
as already amended by virtue of the Third Amendment to Constitution1945;
2. Law Number 5 of 1960 regarding Agrarian Policy (State Gazette of theRepublic of Indonesia of 1960 Number 104, Supplement to State GazetteNumber 2034);
3. Law Number 5 of 1990 regarding Conservation of Bio Natural Resourcesand Ecosystem thereof (State Gazette of the Republic of Indonesia of1990 Number 49, Supplement to State Gazette Number 3419);
4. Law Number 24 of 1992 regarding Spatial Plan (State Gazette of theRepublic of Indonesia of 1992 . Number. 115, Supplement to StateGazette Number 3501);
5. Law Number 23 of 1997 regarding Environmental Management (StateGazette of the Republic of Indonesia of 1997 Number 68, Supplement to
State Gazette Number 3699);6. Law Number 22 of 1999 regarding Decentralization (State Gazette of the
Republic of Indonesia.of 1990 Number 49, Supplement to State GazetteNumber 3419):
7. Law Number 41 of 1999 regarding Forestry (State Gazette of theRepublic of Indonesia of 1999 Number 167, Supplement to State GazetteNumber 3888):
8. Law Number 18 of 200 I regarding Special Autonomy for Special RegionProvince of Aceh as Nanggroe Aceh Darussalam Province (StateGazette of the Republic of Indonesia of 2001 Number 114, Supplementto State Gazette Number 4131 ):
9. Law Number 21 of 2001 regarding Special Autonomy for Papua Province(State Gazette of the Republic of Indonesia of 2001 Number 135.
Supplement to State Gazette Number 4151).
HAS DECIDED:
To Stipulate : GOVERNMENT REGULATION ON FOREST ARRANGEMENT ANDFOREST MANAGEMENT, FOREST UTILIZATION AND FOREST AREAUSE PLANNING.
-
7/31/2019 34_02_en
2/49
CHAPTER IGENERALArticle 1
In this Government Regulation:1. Forest Arrangement shall mean design of forest management unit, covering the forest
resources grouping by type of ecosystem and potential contained therein for maximumsustainable benefit to the community.
2. Forest utilization shall mean any activities to utilize forest areas, environmental service,timber and non timber forest produce optimally and fairly for sustainable communitywelfare;
3. Protected forest area utilization shall mean any operation to use protected forest areawithout prejudice to its major function.
4. Production forest area utilization shall mean any operation to use growing !?pace foroptimum environmental, social and economic benefits without prejudice to its majorfunction.
5. Environment service utilization in protected forest shall mean any business operationutilizing environmental service potential without damage to environment and prejudice toforest major function.
6. Environment service utilization in production forest shall mean any business operationutilizing environmental service potential without damage to the environment and prejudiceto forest major function.
7. Timber forest produce utilization shall mean any business operation utilizing andexploiting timber forest produce without damage to the environment and prejudice toforest major function.
8. Non timber forest produce utilization shall mean any business operation utilizing andexploiting non timber forest produce without damage to the environment and prejudice tothe forest major function
9. Timber and or non timber forest product collection shall mean any forms of activity tocollect timber and or non timber forest produce without damage to environment andprejudice to the forest major function.
10. Forest utilization permits shall mean permits issued by competent official and consisting
of area utilization permits, environment service utilization permits, timber and or nontimber forest produce utilization permits and timber and or non timber forest productcollection permits in the designated forest areas.
11. Area utilization permit shall mean operation permit to utilize protected forest and orproduction forest area.
12. Environment Service Utilization Permit shall mean operation permit to utilize environmentof protected forest and or production forest.
13. Timber and or non timber Forest Product Utilization Permit shall mean permit to utilizeproduction forest of which the activities consist of harvesting or logging, planting,maintenance, security, processing and marketing of timber and or non timber forestproduce.
14. Timber and or non timber Forest Produce Utilization Permit in timber estate shall meanpermit to utilize production forest of which the activities consist of land preparation,
nursery, planting, maintenance, security. harvesting and logging, processing andmarketing of timber and non timber forest produce.
15. Timber forest produce collection permit shall mean permit to collect timber forest producecomprising harvesting, transportation, processing and marketing for a definite term and atdefinite volume within production forest.
16. Non timber forest produce collection permit shall mean permit in any forms of activity tocollect non timber forest produce such as rattan, honey, fruits, resin, medicinal herbs andso forth within the protected and or production forests.
17. Forest utilization permit shall consist of area utilization permit. environment serviceutilization permit, timber and non timber forest products utilization permit.
18. Forest area use shall mean any activity to use forest area for construction beyond forestryactivities without changing major status and function of such forest area.
19. Certificate of Forest Produce Legality (SKSHH) shall mean document stating legality of
transportation, control and ownership of forest produce as evidence of forest producelegality granted by the official so appointed.
-
7/31/2019 34_02_en
3/49
20. Forest Utilization Permit Dues (IIUPH) shall mean charges collection imposed on permitholder of forest utilization of a certain forest area paid in a lumpsum upon issue of permit.
21. Forest Resources Fees (PSDH) shall mean charges imposed as the intrinsic valuereplacement of forest produce collected from the state forest.
22. Afforestation Fund (DR) shall mean fund collected from permit holder of forest productsutilization permit of natural forest in terms of timber, for afforestation, forest rehabilitation
and supporting activities thereof.23. Individual shall mean any member of local community who is legally capacitate and a
Citizen of the Republic of Indonesia.24. Cooperatives shall mean corporate body with individuals as members or cooperative
corporate body operating based on cooperative principles and simultaneously serving ascommunity economic movement based on familiar principle.
25. Timber forest produce primary industry shall mean processing of log and or chippedtimber to the semi finished and finished products.
26. Non timber forest product primary industry shall mean processing of non timber forestproduce to semi finished and finished products.
27. Minister shall mean the Minister in charge of Forestry.
Article 2
(1) Forest arrangement and forest management, forest utilization and forest area useplanning shall become a part of the forest management activities.
(2) Activities in the forest arrangement and forest management, forest utilization and forestarea use planning as referred to in paragraph (1) shall be implemented in forest territoryin terms of Conservation Forest Management Unit or Unity (KPHK), Protected ForestManagement Unit or Unity (KPHL) and Production Forest Management Unit and Unity(KPHP).
Article 3
(1) Forest arrangement and forest management, forest utilization and forest area use
planning as referred to in Article 2 shall become the authority of the Central Governmentand Local Administration.
(2) The Government may delegate activities in forest arrangement and forest planning aswell as forest utilization and forest area use as referred to in paragraph (2) in a certainterritory or for a certain activity to the State Enterprises dealing with forestry.
Article 4
(1) For research, development, forestry education and training, religion and culture theMinister shall stipulate forest arrangement and forest management, forest utilization andspecially designated forest use planning.
(2) Forest arrangement and forest management, forest utilization and specially designatedforest area use planning as referred to in paragraph (1) for:a. research and development can be delegated to institutions dealing with research and
development;b. education and training be delegated to institutions dealing with education and training;c. religion and culture can be delivered to institutions dealing with religious and cultural
activities:
(3) Forest arrangement and forest management, forest utilization and specially designatedforest area use planning as referred to in paragraph (2) shall be stipulated by the Minister.
(4) Provisions on forest arrangement and forest management, forest utilization and speciallydesignated forest area use planning as referred to in paragraphs (1) and (2) shall be
stipulated by virtue of Decree of Minister.
-
7/31/2019 34_02_en
4/49
CHAPTER IIFOREST ARRANGEMENT AND FOREST MANAGEMENT PLANNING
Part OneForest Arrangement
Paragraph 1General
Article 5
(1) Forest arrangement as referred to in Article 2 shall be made at each forest managementunit in all forest areas.
(2) Forest areas as referred to in paragraph (I) shall include:a. conservation forests;b. protected forest; andc. production forest.
Paragraph 2Forest Arrangement in Conservation Forest
Article 6
Conservation forests as referred to in Article 5 paragraph (2) item a shall consist of:a. nature reserve forest area:b. nature preserve forest area: andc. hunting resort.
Article 7
(1) Forest arrangement in nature reserve forest areas as referred to in Article 6 item a shallconsist of:a. nature preserve forest arrangement; andb. wildlife reserve forest arrangement.
(2) Nature preserve forest arrangement as referred to in paragraph (1) item a shall contain thefollowing activities:a. determination of boundaries of arranged forest;b. inventory taking and identification of area potential and condition;c. inventory taking and identification of problems in the area and surrounding territory;d. forest history; ande. measuring and mapping.
(3) Wildlife reserve forest arrangement as referred to in paragraph 1 item b not only includesactivities as referred to in paragraph (2) but also:a. division of areas to blocks; andb. block pegging.
Article 8
(1) Forest arrangement in natural preservation forest area as referred to in Article 6 item bshall consist of:a. national park;b. forest park; andc. natural resort.
(2) Forest arrangement in national park area as referred to in paragraph (1) item a shall bemade at each management unit containing the following activities:a. determination of boundaries of arranged forest;b. inventory taking, identification and history of area condition;c. collection of social, economic and cultural data in the area and its surrounding;
d. division of area to zones;e. zone pegging; and
-
7/31/2019 34_02_en
5/49
f. measuring and mapping.
(3) Division of area to zones as referred to in paragraph (2) item d shall consist of:a. core zone;b. utilization zone; andc. other zones.
Article 9
(1) Forest arrangement in forest park area as referred to in Article 8 paragraph ( I ) item bshall be made at each management unit containing the following activities:a. determination of boundaries of arranged forest;b. inventory taking, identification and history of area condition;c. collection of social, economic and cultural data in the area and its surrounding;d. division of area to blocks;e. block pegging; andf. measuring and mapping.
(2) Division of area to blocks as referred to in paragraph (1) item d shall consist of:
a. utilization block:b. plant collection block;c. protection block; andd. other blocks.
Article 10
(1) Forest arrangement in natural resort area as referred to in Article 8 paragraph (I) item cshall be made at each management unit containing the following activities:a. determination of boundaries of arranged forest;b. inventory taking, identification and history of area condition;c. collection of social, economic and cultural data in the area and its surrounding;d. division of area to blocks;
e. block pegging; andf. measuring and mapping.
(2) Division of area to blocks as referred to in paragraph (1) item d shall consist of:a. intensive utilization block;b. limited utilization block; andc. other blocks.
Article 11
(1) Forest arrangement in hunting resort as referred to in Article 6 item c shall be made ateach management unit containing the following activities:a. determination of boundaries of arranged forest;
b. inventory taking, identification and history of area condition;c. collection of social, economic and cultural data in the forest and its surrounding;d. division of forest to blocks;e. block pegging; andf. measuring and mapping.
(2) Division of forest to blocks as referred to in paragraph (1) item d shall consist of:a. hunting block;b. utilization block;c. wildlife development block; andd. other blocks.
-
7/31/2019 34_02_en
6/49
Paragraph 3Forest Arrangement in Protected Forest
Article 12
(1) Forest arrangement in protected forest as referred to in Article 5 paragraph (2) item bshall be made at each management unit containing the following activities:
a. determination of boundaries of arranged forest;b. inventory taking, identification and history of area condition; .c. collection of social, economic and cultural data in the forest and its surrounding:d. division of forest to blocks;e. registration;f. measuring and mapping.
(2) Division of forest to blocks as referred to in paragraph (1) item d shall consist of:a. protection block;b. utilization block;c. other blocks.
Paragraph 4
Forest Arrangement in Production ForestArticle 13
(1) Forest arrangement in production forest as referred to in Article 5 paragraph (2) item cshall contain the following activities:a. determination of boundaries of arranged forest;b. inventory taking of forest potential and condition shall cover:
1. type. potential and distribution of flora:2. type, population and habitat of fauna;3. design of area extent boundary route and boundary within forest area, and
enclave boundary design;4. social, economic and cultural aspects of community;5. land status, use and coverage~
6. type of land, field gradient and topography;7. climate:8. human resources (demography):9. hydrologic condition, landscape and natural phenomena.
c. forest history;d. division of forest to blocks and plots;e. block and plot pegging:f. territory opening and management facilities;g. registration: andh. measuring and mapping.
(2) Division of blocks to working plots as referred to in paragraph (I) item e shall take intoaccount:
a. area extent;b. forest produce potential; andd. ecosystem conformity.
Part TwoForest Management Planning
Article 14
(1) Forest management plan shall be made based on forest arrangement at each forestmanagement unit or unity as referred to in Articles 8 through 13, by taking into accountcommunity's aspiration, participation and cultural value as well as environmental condition.
(2) Forest management planning as referred to in paragraph (1) shall comprise:
a. long term forest management plan containing macro activity plan regarding guidelines,orientation as well as principles of forest management to attain objective of forest
-
7/31/2019 34_02_en
7/49
management within 20 (twenty) years shall be prepared by agency responsible forProvincial forestry and ratified by the Minister;
b. medium term forest management plan containing outline of long term forestmanagement planning within of 5 (five) years shall be prepared by agencyresponsible for Provincial forestry and ratified by the Minister;
c. short term forest management plan containing detailed operational plan being
elaboration of management plan within I (one) year shall be prepared by agencyresponsible for Provincial forestry and ratified by the Governor:
(3) Forest management plan as referred to in paragraph (2) shall contain planning,organizing, implementation, evaluation, control, supervision being basis of forestmanagement activities.
(4) Guidelines on forest management planning as referred to in paragraph (2) shall bestipulated by virtue of Decree of Minister.
CHAPTER IIIFOREST UTILIZATION
Part One
GeneralArticle 15
(1) Forest utilization as referred to in Article 2 shall be aimed at obtaining optimum benefit forfair welfare of the entire community by maintaining forest preservation.
(2) Sustainable forest utilization as referred to in paragraph (1) shall fulfill .criteria andindicators of sustainable management.
(3) Criteria and indicators as referred to in paragraph (2) shall include economic, social andecological aspects.
(4) Criteria and indicators as referred to in paragraph (3) shall be stipulated by virtue of
Decree of Minister. .
Article 16 .
Forest utilization as referred to in Article 15 can be made at any forest areas unless naturepreserve forest, core zone and jungle zone at national park.
Part TwoForest Utilization in Conservation Forest
Article 17
Forest utilization in conservation forest shall be stipulated by virtue of the prevailing legislation.
Part ThreeForest Utilization in Protected Forest
Paragraph 1General
Article 18
(1) Forest utilization in protected forest can be in terms of:a. area utilization:b. environmental service utilization; orc. non timber forest produce collection.
(2) Forest utilization in protected forest as referred to in paragraph (1) can only be made inutilization block.
-
7/31/2019 34_02_en
8/49
Paragraph 2Area Utilization in Protected Forest
Article 19
(1) Area utilization in protected forest as referred to in Article 18 paragraph (1) item a shall bein terms of any kinds of business using the area without prejudice to its major function.
(2) Area utilization as referred to in paragraph (1) shall comprise:a. medicinal herbs culture;b. ornamental plant culture;c. mushroom culture;d. bee culture;e. wildlife breeding culture; orf. swallow nest culture. .
(3) The implementation of area utilization in protected forest shall not:a. use any mechanical and heavy equipment;b. construct any permanent facility and infrastructure; and/orc. disturb the area function.
(4) Medicinal herbs, ornamental plant and mushroom culture as referred to in paragraph (2)items a, band c shall comprise nursery, planting, maintenance, harvesting, security,processing and marketing.
(5) Bee culture as referred to in paragraph (2) letter d shall comprise construction of bee hive,maintenance, harvesting, security, processing and marketing.
(6) Wildlife breeding culture as referred to in paragraph (2) item e shall comprise wildlifereproduction and or growing.
(7) Swallow nest culture as referred to in paragraph (2) item f shall comprise maintenance,harvesting and security as well as marketing.
Paragraph 3Environmental Service Utilization in Protected Forest
Article 20
(1) Environmental service utilization as referred to in Article 18 paragraph (1) item b shall beany business utilizing environmental service potential without damage to the environmentand prejudice to its major.
(2) In environmental service potential utilization as referred to in paragraph (l) no facility norinfrastructure which may change the landscape shall be constructed.
(3) Utilization of environmental service in protected forest as referred to in paragraph (I) shall
be in terms of among others:a. natural resort;b. challenging sport resort;c. water utilization;d. carbon trade; ore. forest and environment salvation.
Paragraph 4Non Timber Forest Produce Collection in Protected Forest
Article 21
(1) Non timber forest produce collection in protected forest as referred to in Article 18paragraph (1) item c can be made by collecting the existing non timber forest produce in
natural manner without harming its major function.
-
7/31/2019 34_02_en
9/49
(2) Non timber forest produce collection in protected forest as referred to in paragraph (I)shall be among others:a. taking rattan;b. taking honey:c. picking fruits and various other forest produce: ord. unprotected wild fauna traditional hunting.
(3) The community shall not collect any forest produce which is legally restricted.
Paragraph 5Permit of Forest Utilization in Protected Forest
Article 22
(1) Forest utilization in protected forest as referred to in Article 18 paragraph (1) shall besubject to permit.
(2) Permit of forest utilization in protected forest as referred to in paragraph (I) shall consist of:a. permit of area utilization in protected forest;b. permit of environmental service utilization in protected forest;
c. permit of non timber forest produce collection In protected forest.
(3) No permit of forest utilization in protected forest can be granted in any forest area alreadyfurnished with forest utilization permit.
(4) No permit of forest utilization in protected forest can be transferred without any writtenconsent of the issuing agency.
(5) The area already furnished with forest utilization permit in protected forest shall not serveas any collateral nor be encumbered.
Article 23
(1) The permit of area utilization in protected forest as referred to in Article 22 paragraph (2)item a shall be effective for no longer than 5 (five) years for a maximum extent of 50 (fifty)hectares.
(2) The permit of environmental service utilization in protected forest as referred to in Article22 paragraph (2) item b shall be effective for no longer than 10 (ten) years for a maximumextent of 1000 (one thousand) hectares.
(3) The permit of non timber forest produce collection in protected forest as referred to inArticle 22 paragraph (2) item c shall be effective for no longer than 1 (one) year providedthat it is within the given quantity, type and location. .
Article 24
(1) The Minister shall stipulate treatment for area utilization, environmental service utilizationand non timber forest produce collection according to business location and or type.
(2) The stipulation of treatment for area utilization as referred to in paragraph (1) shall be asfollows:a. no tree logging;b. non eroding land tilling technique;c. non-use of pesticide and insecticide;d. non-use of mechanical equipment; ande. operation below gradient of 25%.
(3) Stipulation on treatment for environmental service utilization as referred to in paragraph (I)
shall not change the landscape and environment as well as procure conservation of theenvironment preservation supporting elements.
-
7/31/2019 34_02_en
10/49
(4) Stipulation on treatment of non timber forest produce as referred to in paragraph (I) shall
be as follows:a. no tree logging;b. no disturbance to collected potential preservation; andc. no mechanical equipment.
Part FourForest Utilization in Production Forest
Paragraph 1General
Article 25
(1) Forest utilization in production forest shall be made by maintaining preservation of andimprovement in its major function.
(2) Forest utilization in production forest may be in terms of:a. area utilization;b. environmental service utilization;
c. timber forest produce utilization; .d. non timber forest produce utilization;e. timber forest produce collection; orf. non timber forest produce collection.
Paragraph 2Area Utilization in Production Forest
Article 26
(1) Area utilization in production forest as referred to in Article 25 paragraph (2) item a shallbe made by utilizing the growth space not disturbing major function of the area.
(2) Area utilization as referred to in paragraph (1) shall be in terms of among others:
a. medicinal herbs culture:b. ornamental plants culture;c. under vegetation food crops culture;d. mushroom culture;e. bee culture;f. wildlife breeding or culture: org. swallow nests culture.
(3) Medicinal herbs, ornamental plants and food crops culture in production forest as referredto in paragraph 2 items a, b, and c shal1 include nursery, planting, maintenance, security,harvesting, processing and marketing.
(4) Bee culture in production forest as referred to in paragraph (2) item e shall include making
of bee hives, maintenance, harvesting and security.
(5) Wildlife culture in production forest as referred to in paragraph (2) item f shall bereproduction and or growing of wildlife in production forest.
(6) Swallow nests culture in production forest as referred to in paragraph (2) item g shallinclude maintenance, security and harvesting.
Paragraph 3Environmental Service Utilization in Production Forest
Article 27
(1) Environmental service utilization in production forest as referred to in Article 25 paragraph
(2) item b shall be any forms of business in utilizing environmental service potentialwithout damaging landscape and environment.
-
7/31/2019 34_02_en
11/49
(2) Environmental service utilization in production forest as referred to in paragraph (1) shall
be in terms of:a. natural resort;b. challenging sport;c. water utilization;
d. carbon trade; ore. forest and environment salvation.
Paragraph 4Timber and Non Timber Forest Produce Utilization
in Production ForestArticle 28
Timber and Non-timber Forest Produce Utilization in Production Forest as referred to inArticle 25 paragraph (2) items c and d shall consist of:a. timber and or non-timber forest produce utilization in natural forest shall also be referred
to as natural forest utilization;b. timber and or non-timber forest produce utilization in timber estate shall also be referred
to as timber estate utilization.
Article 29
(1) Timber forest produce utilization in natural forest as referred to in Article 28 item a shallcomprise logging, transportation, planting, maintenance, security, processing andproduce marketing.
(2) Timber forest produce utilization in natural forest can only be made at the forest area withpotential for timber forest produce utilization.
(3) Criteria of natural forest potential which can be utilized as referred to in paragraph (2)shall be stipulated by virtue of Decree of Minister.
(4) The natural forest area which does not fulfill the criteria of potential for timber forestproduce utilization shall be rehabilitated.
(5) Non timber forest produce utilization in natural forest as referred to in Article 28 item acan be in terms of among others of utilization of:a. rattan. sago, thatch palm, bamboo including felling, rejuvenation, maintenance.
security. processing and produce marketing.b. resin, tree bark, leaf, fruit or seed, including harvesting, maintenance, processing,
produce marketing.
(6) Further provisions on timber and or non-timber forest produce utilization in natural forestas referred to in paragraphs (l), (2) and (5) shall be stipulated by virtue of Decree of
Minister.
Article 30
(1) Timber and or non-timber forest produce utilization in timber estate as referred to inArticle 28 item b shall comprise land preparation, nursery, planting, maintenance, security,harvesting or produce felling, processing and marketing.
(2) Timber and or non-timber forest produce utilization in timber estate may be in terms of:a. similar species; andb. mix of various species.
(3) Forest produce utilization in timber estate shall be made at empty land, sedge grass field
and or bushes in production forest.
-
7/31/2019 34_02_en
12/49
(4) Further provisions as referred to in paragraphs (1) and (2) shall be stipulated by virtue ofDecree of Minister.
Article 31
In case of forest area use in production forest area which will be furnished with forest
utilization permit, the Minister shall coordinate the same with the relevant agencies.
Paragraph 5Forest Produce Collection in Production Forest
Article 32
(1) Timber forest produce collection as referred to in Article 25 paragraph (2) item e shall beaimed at fulfilling the individual needs and or serving as public facility for people livingaround the forest.
(2) Non-timber forest produce collection in referred to in Article 25 paragraph (2) item f canbe for commercial purposes.
(3) Non-timber forest produce collection in production forest as referred to in paragraph (2)shall be among others collection of rattan, honey, resin, fruits or seeds, leaves, plantsunder vegetation.
(4) Non-timber forest produce collection as referred to in paragraph (2) for plants and wildlifeshall be stipulated pursuant to the prevailing legislation.
(5) Timber and non-timber forest produce collection in production forest as referred to inArticle 25 paragraph (2) items e and f shall comprise the following activities:a. timber forest produce collection from natural forest; andb. non-timber forest produce collection from natural forest.
(6) Further provisions as referred to in paragraphs (1) and (2) shall be stipulated by virtue of
Decree of Minister.
Paragraph 6Permit of Forest Utilization in Protected Forest
Article 33
(1) Forest utilization in production forest as referred to in Article 25 paragraph (2) shall besubject to permit.
(2) Permit of forest utilization in production forest as referred to in paragraph (I) shall consistof:a. area utilization permit;b. environmental service utilization permit:c. timber forest produce utilization permit;
d. non timber forest produce utilization permit;e. timber forest produce collection permit:f. non-timber forest produce collection permit:
(3) Timber and non-timber forest produce utilization permits as referred to in paragraph (1)items c and d shall not be issued for any area already furnished with timber and non-timber forest produce utilization permit or timber forest produce collection permit.
Article 34
(1) Permit of forest utilization in production forest cannot be transferred without any writtenconsent of the issuing agency.
(2) Permit of forest utilization in production forest shall not constitute any proprietary right toforest area.
-
7/31/2019 34_02_en
13/49
(3) Any forest area furnished with permit of forest utilization in production forest cannot be
made as collateral nor encumbered to any other party.
(4) Plants produced from permit of forest produce utilization in timber estate can becomecollateral provided the permit is still effective.
Article 35
(1) Permit of area utilization in production forest as referred to in Article 33 paragraph (2) itema shall be effective for not more than 5 (five) years provided that:a. maximum extent is 50 (fifty) hectares;b. each individual or cooperative may have maximum 2 (two) permits in 1 (one)
District/Town;
(2) Permit of environmental service utilization in production forest as referred to in Article 33paragraph (2) item b shall be effective for not more than 10 (ten) years provided that:a. maximum extent is 1000 (one thousand) hectares:b. each individual, cooperative, state-enterprise, regional-state enterprise or Indonesian
private-company may have maximum 2 (two) permits in 1 (one) Province;
(3) Permit of timber forest produce utilization in natural forest as referred to in Article 33paragraph (2) item c shall be effective for not more than 55 (fifty five) years.
(4) The permit of non-timber forest produce utilization in natural forest as referred to in Article33 paragraph (2) item d shall be effective for not more than 10 (ten) years.
(5) The permit of forest produce utilization in timber estate as referred to in Article 33paragraph (2) items c and d shall be effective for not more than 100 (one hundred) years.
(6) The timber and non-timber forest produce collection permit as referred to in Article 33paragraph (2) items e and f shall be effective for not more than 1 (one) year provided that:
a. maximum extent is 20 (twenty) m3 for timber forest produce collection from directfelling;
b. maximum is 20 (twenty) tons for non timber forest produce.
Part FivePermit
Paragraph 1Permit Holder
Article 36
(1) Area utilization permit can be granted to:a. individual: andb. cooperative.
(2) Environmental service utilization permit can be granted to:a. individual;b. cooperative.c. Indonesian Private-Company; andd. State-Enterprise and Regional-State Enterprise.
(3) Timber forest produce utilization permit can be granted to:a. individual:b. cooperative.c. Indonesian Private-Company; andd. State-Enterprise and Regional-State Enterprise.
(4) Non-timber forest produce utilization permit can be granted to:a. individual;
-
7/31/2019 34_02_en
14/49
-
7/31/2019 34_02_en
15/49
b. Governor with carbon copies to Minister, District Head or Mayor and agency beingresponsible for local forestry if within cross district/town area in one province;
c. Minister with carbon copies to Governor and District Head or Mayor if within the cross-provincial area.
Article 42
Permit of timber forest produce utilization in natural forest or timber estate shall be granted bythe Minister based on the recommendation of District Head of Mayor and Governor.
Paragraph 4Procedure for and Requirements of Application for Permit
Article 43
(1) Area utilization permit, environmental service utilization permit, non-timber forest produceutilization permit and timber and or non-timber forest produce collection permit shall begranted by filing an application.
(2) Application for permit as referred to in paragraph (1) shall be as follows:
a. Application for permit as referred to in Articles 37, 38, 39, 40 and 41 shall be filed toDistrict Head or Mayor with carbon copies to Minister, Governor and agency beingresponsible for local forestry.
b. application for permit as referred to in Articles 37, 38, 39, 40 and 41 shall be filed toGovernor with carbon copies to Minister, District Head or Mayor and agency beingresponsible for local forestry.
c. Application for permit as referred to in Articles 37, 38, 39, 40 and 41 shall be filed tothe Minister with carbon copies to Governor, District Head or Mayor and agency beingresponsible for local forestry.
(3) Plant of timber forest produce utilization in natural forest or timber estate as referred to inArticle 42 shall be granted through tender.
(4) The tender as referred to in paragraph (3) shall be made by the Minister.
(5) Requirements of application for forest utilization permit tender of timber forest produceutilization as referred to in paragraphs (1) and (3) shall be stipulated by virtue of decree ofthe Minister.
Article 44
Bidding in timber forest produce utilization permit tender as referred to in Article 42 shall bestipulated as follows:a. The Minister shall stipulate criteria of production forest which can be tendered, area
status and bidders;b. The Minister shall extensively announce extent of forest area to tender;c. the interested parties shall file requests for becoming bidders;
d. the bidders shall be given opportunity to make site visit and seek for necessary data:e. the Minister shall stipulate the awardee.
Article 45
Any permit of forest utilization with change of landscape and impact on environment shallrequire Analysis on Environmental Impacts pursuant to the prevailing legislation.
Part SixRights and Obligations of Forest Utilization Permit Holders
Paragraph 1Rights of Forest Utilization Permit Holders
Article 46
(1) Each forest utilization permit holder shall be entitled to operate as licensed.
-
7/31/2019 34_02_en
16/49
(2) In the operation as referred to in paragraph (1), the forest utilization permit holder shall be
entitled to take benefit from its business yields.
Paragraph 2Obligations of Forest Utilization Permit Holder
Article 47
(1) Each forest utilization permit holder shall:a. prepare action plan of the entire work area for the permit effectiveness period;b. start concrete field activities at the latest 3 (three) months as of the permit issue;c. peg the working area at the latest 3 months as of the permit issue unless for forest
produce collection permit;d. make periodic progress report;e. protect the work area against any disturbance:f. for permit holder in terms of Corporate Body, manage finance pursuant to the
prevailing forestry accounting standard;g. employ the professionals in forestry and other qualified workers according to need;h. pay Forest Resources Fee (PSDH).
(2) Holder of area utilization permit or environmental service permit shall in addition toperforming the obligations as referred to in paragraph (I) pay Forest Utilization PermitDues (IIUPH).
(3) State-Enterprises, Regional-State Enterprises and Private Companies being holders ofenvironmental service permits shall in addition to performing the obligations as referred toin paragraphs (1) and (2) cooperate with local cooperative in not later than 1 (one) yearafter recei ving the permits.
(4) Holders of permit of timber forest produce utilization permit in natural forest or timberestate shall in addition to performing the obligations as referred to in paragraph (1):a. pay Forest Utilization Permit Dues (IIUPH);
b. prepare:1. Action Plan of Timber Forest Produce Utilization (RKUPHHK) for all work areas
for the effectiveness period of permit in not later than 1 (one) year after the permitissue;
2. the First 5-(five)-Year Action Plan in not later than 3 (three) months as ofratification of RKUPHHK);
3. annual Action Plan filed in not later than 2 (two) months prior to start of that of thecurrent year to file to the Minister for approval.
c. manage the forest produce administration;d. measure or test forest produce;e. pay Afforestation Fund;f. apply silviculture system by location and species to develop;g. provide and supply timber raw materials for forest produce primary industry.
(5) Holders of permit of non-timber forest produce utilization permit shall in addition toperforming the obligations as referred to in paragraph (1):a. pay Forest Utilization Permit Due (IIUPH);b. prepare:
1. Action Plan of Non-timber Forest Produce Utilization (RKUPHHBK) for 10 (ten)years in not later than 1 (one) year after the permit issue;
2. The First 5-(five)-Year Action Plan in not later than 3 (three) months as ofratification of RKUPHHBK:
3. Annual Action Plan, filed in not later than 2 (two) months prior to the start of thatof current year.
c. manage non-timber forest produce administration;d. measure and test non-timber forest produce;
e. ensure raw material supply for of non-timber forest produce primary industry;
-
7/31/2019 34_02_en
17/49
(6) State-Enterprises. Regional-State Enterprises and Private-Companies being holders oftimber and or non timber forest produce utilization permits shall in addition to performingthe obligations as referred to in paragraphs (1) and (4) and (5) cooperate with localcooperative community in not later than 1 (one) year after receiving the permits.
(7) Cooperation as referred to in paragraphs (3) and (6) shall be in terms of:
a. placement;b. business cooperation in forest produce utilization.
(8) Holders of forest produce utilization permit shall cultivate timber estate at least 50% (fifty)percent of total vegetation extent based on planting cycle of area extent within not laterthan 5 (five) years as of the issue of forest produce utilization permit.
Paragraph 3Forest Utilization Dues
Article 48
(1) Forest Utilization Dues being non tax state revenue originating from forest resources shallconsist of:
a. Forest Utilization Permit Dues (IIUPH);b. Forest Resources Fee (PSDH): andc. Afforestation Fund (DR).
(2) Forest Utilization Permit Dues (IIUPH) as referred to in paragraph (1) item a shall beimposed on the holders of forest utilization permit based on extent of forest given in thatpermit.
(3) Forest Utilization Permit Dues (IIUPH) as referred to in paragraph (1) shall be collected ina lumpsum upon permit issue.
(4) Forest Resources Fee (PSDH) as referred to in paragraph (1) letter b shall be imposed onthe holders of forest utilization permit.
(5) Forest Resources Fee (PSDH) collection of timber forest produce originating from naturalforest shall be based on:a. cruising report of trees to fell for medium log;b. production report for log;c. plotting remainder report; andd. other forest produce report.
(6) Forest Resources Fee (PSDH) collection of timber forest produce originating from timberestate shall be based on cruising report of trees to fell.
(7) Each timber and non-timber forest produce originating from forest area use permit orforest area undergoing any designation change to non-forest area and charged by the title
to land shall be subject to Forest Resources Fee (PSDH) and or Afforestation Fund (DR).
(8) Provisions on imposition. collection, payment, management, supervision and control oflIUPH, PSDH and DR as referred to in paragraph (1) shall be stipulated by virtue of theprevailing legislation.
Part SevenPermit Nullification
Article 49
(1) Forest utilization permit can be nullified in case of:a. expiration;b. revocation by issuing authority as sanction;
c. return of permit by the permit holder with the written statement to the issuing authorityprior to expiration thereof; or
-
7/31/2019 34_02_en
18/49
d. attainment of allowable volume or weight in the forest produce collection permit.
(2) Before receiving the returned permit as referred to in paragraph (1) item c,comprehensive audit shall first be made.
(3) Based on the audit as referred to in paragraph (2), the issuing authority may accept or
accept conditionally or deny the permit return.
(4) Nullification of permit based on paragraph (1) shall not release the permit holder from:a. paying all financial liabilities and fulfilling other obligations stipulated by the
Government or Local Administration:b. executing all given provisions in relation to the expiration of permit in accordance with
the prevailing provision.
(5) Upon the nullification of permit as referred to in paragraph (1) immovable goods and orplants already built and or planted within the work area shall become the state' s property.
(6) Upon nullification of permit as referred to in paragraph (1) the Government and or LocalAdministration shall not be responsible for obligations of the permit holder to any third
party.
Part EightExtension of Permit
Article 50
(1) Area utilization permit, environmental service utilization permit, timber and non-timberforest produce utilization permit, and timber and non-timber forest produce collectionpermit can be extended if expired.
(2) Permit extension as referred to in paragraph (1) can be granted in case of fulfilling ofpermit extension requirements as follows:a. for area utilization permit, environment service permit, non timber forest produce
utilization permit as well as timber and non-timber forest produce collection permit,evaluation of performance of permit holder stipulated by the Minister;
b. for permit of timber forest produce utilization in natural forest or permit of timber forestproduce utilization permit in timber estate, evaluation of performance of permit holderby the Minister and for sustainable forest utilization certificate from the Minister.
(3) To request for permit extension already fulfilling the requirements as referred to inparagraph (2), the following provision shall apply:a. extension of area utilization permit, environmental service permit, non timber forest
produce utilization permit and timber and non-timber forest produce collection permitshall be granted by:1) District Head/Mayor with carbon copies to Minister, Governor and agency being
responsible for local forestry if within the territory of district/town;
2) Governor with carbon copies to Minister, District Head Mayor and agency beingresponsible for local forestry if cross-district/town territory in one province;
3) Minister with carbon copies to Governor and District Head/Mayor if crossprovincial area.
b. extension of permit of timber forest produce utilization in natural forest or permit oftimber forest produce utilization in timber estate shall be granted by the Minister afterrecommendation from District Head/Mayor and Governor.
(4) Request for extension of timber forest produce utilization permit not fulfilling therequirements as referred to in paragraph (2) item b shall be denied and the work areathereof shall be offered in tender by the Minister.
(5) Procedure for and requirements of permit extension as referred to in paragraph (2) item b
and paragraph (4) shall be stipulated by virtue of decree of Minister.
-
7/31/2019 34_02_en
19/49
Part NineEmpowerment of Local Community in and or around Forest
Article 51
(1) Empowerment of local community in and or around forest shall be aimed at improving theability of the community institutional capability in forest utilization.
(2) The Government and or Local Administration shall facilitate improvement in communityinstitutional capability as referred to in paragraph ().
(3) Further provisions as referred to in paragraphs (1) and (2) shall be stipulated by virtue ofDecree of Minister.
CHAPTER IVFOREST PRODUCE PRIMARY INDUSTRY
Part OneGeneral
Article 52
(1) Forest produce primary industry shall be aimed at:
a. increasing value added of forest produce: andb. using raw materials efficiently.
(2) Forest produce primary industry shall consist of:a. timber forest produce primary industry: andb. non-timber forest product primary industry.
(3) Capacity of forest produce primary industry permit shall not exceed sustainable forestbearing capacity.
(4) Raw material source of forest produce primary industry may originate from natural forest,timber estate. title forest and timber yield of plantation.
Article 53
Arrangement, promotion and development of forest produce primary industry shall be aimedat:a. realizing efficient, productive and highly competitive industry;b. preventing damage to forest resources and environmental pollution;c. securing sources of raw material for sustainable forest management.
Article 54
(1) Authority of arrangement, promotion and development of forest produce primary industryshall be stipulated by the Minister in respect of all industries dealing with:a. processing log to sawn wood;
b. processing log to chips, veneer. plywood, laminating veneer lumber; andc. processing non timber raw material directly collected from forest.
(2) Authority of arrangement. promotion and development of forest produce industryregulated by the Minister being responsible for industry shall include all industries otherthan those as referred to in paragraph (I).
(3) To preserve forest resources and continuous raw materials supply, each pulp and paperindustry development shall timber estate.
(4) In addition to paragraph (3), to fulfill raw materials for pulp and paper industry, permitholders can cooperate with timber forest produce utilization permit holders and or importthe raw materials.
-
7/31/2019 34_02_en
20/49
Article 55
(1) Industrial operation permits and timber and non-timber forest produce primary industryexpansion permits can be granted to:a. individuals:b. cooperatives:
c. State-Enterprises:d. Regional-State Enterprises;e. Indonesian Private-Companies.
(2) Sawmill operation permits with annual production capacity up to 2000 (two thousand)cubic meter can be granted to:a. individuals;b. cooperatives.
(3) Industrial registration certificates for small-scale non timber forest produce primaryindustry can be granted to:a. individuals;b. cooperatives.
(4) Provisions on forest produce primary industry criteria as referred to in paragraphs (1), (2)and (3) shall be stipulated by virtue of Decree of the Minister.
Part TwoTimber Forest Produce Primary Industry Permit
Article 56
Each establishment or expansion of timber forest produce primary industry shall requireindustrial operation permit or expansion permit for timber forest produce primary industry.
Article 57
(1) Industrial operation permit and timber forest produce primary industry expansion permitshall be effective indefinitely pursuant to provisions of this Government Regulation.
(2) Evaluation of timber forest produce primary industry shall be made at least quarterly.
(3) Criteria of and procedure for evaluation of timber forest produce primary industry shall bestipulated by virtue of decree of Minister.
Part ThreeProcedure for and Requirements of Request for Timber Forest
Produce Primary Industry Operation PermitArticle 58
(1) Request for timber forest produce primary industry operation permit and expansion permitfor:a. sawmill with annual production capacity up to 6000 (six thousand) cubic meters shall
be filed to Governor with carbon copies to Minister and District Head/Mayor.b. Timber forest produce primary industry directly processing log and or chip to chip
timber, veneer and plywood as well as laminating veneer lumber with annualproduction capacity up to 6000 (six thousand) cubic meter shall be filed to Governorwith carbon copies to Minister and District Head/Mayor.
c. Timber forest produce primary industry directly processing log and or chip to sew log,chip timber, veneer and plywood as well as laminating veneer lumber with annualproduction capacity up to 6000 (six thousand) cubic meter shall be filed to Ministerwith carbon copies to Minister being responsible for industrial affairs and Governor.
d. all forest produce industries as referred to in items a. b and c shall be filed to the
Minister being responsible for industrial affairs with carbon copies to the Minister,Governor and District Head/Mayor.
-
7/31/2019 34_02_en
21/49
(2) Requirements of request for timber forest produce primary industry operation permit and
expansion permit as referred to in paragraph (I) items a, band c shall be stipulated byvirtue of Decree of Minister.
Article 59
(1) Request for timber forest produce primary industry operation permit and or expansionpermit as referred to in Article 58 paragraph (I) items a. band c shall be furnished _with-continuous timber raw material supply guarantee.
(2) Provisions on continuous timber raw material security guarantee as referred to inparagraph (I) shall be stipulated by virtue of Decree of Minister.
Part FourNon Timber Forest Produce Primary Industry Permit
Article 60
(1) Any small-scale non-timber forest produce primary industries shall have the industrialregistration certificates treated as industrial operation permits.
(2) Each establishment or expansion of medium and large scale non timber forest produceprimary industry shall have industrial operation permit or expansion permit
(3) Further provisions on non timber forest produce primary industry operation permit asreferred to in paragraphs (1) and (2) shall be stipulated by virtue of Decree of Minister.
Article 61
(1) Small-scale non timber forest produce primary industry registration certificate, industrialoperation permit and non timber forest produce primary industry expansion permit shallbe effective for indefinite term pursuant to provisions of this Government Regulation.
(2) Performance evaluation of non timber forest produce primary industry shall be madeevery 3 (three) years.
(3) Guidelines on performance evaluation of non timber forest produce primary industry asreferred to in paragraph (2) shall be stipulated by virtue of Decree of Minister.
Part FiveProcedure for and Requirements of Non-Timber Forest
Produce Primary Industry Operation PermitArticle 62
(1) Request for small-scale non-timber forest produce primary industry registration certificate,non timber forest produce primary industry operation permit and expansion permit there
of shall be filed to the Governor with carbon copies to Minister and District Head/Mayor.
(2) Requirements of small-scale non timber forest produce primary industry registrationcertificate, non timber forest produce primary industry operation permit and expansionpermit shall be stipulated by virtue of Decree of Minister.
Article 63
Request for small-scale non timber forest produce primary industry registration certificate, nontimber forest produce primary industry operation permit and expansion permit as referred to inArticle 62 shall be furnished with the explanation of fulfillment and origin of raw materials.
-
7/31/2019 34_02_en
22/49
Part SixPermit Issuing Authority
Article 64
(1) Operation permit for sawmill with annual production capacity up to 6000 (six thousand)cubic meters and small-scale, medium-scale and large-scale non timber forest produce
primary industry registration certificate shall be granted by Governor by taking intoaccount technical suggestions and consideration from the authority being responsible forforestry affairs at district/town and approval from the Minister.
(2) Timber forest produce primary industry operation permit and expansion permit directlyprocessing log and or chip timber to chip wood, veneer and plywood, laminating veneerlumber with annual production capacity up to 6000 (six thousand) cubic meters shall begranted by Governor by taking into account technical suggestions and consideration fromthe authority being responsible for forestry affairs at district/town and approval from theMinister.
(3) Timber forest produce primary industry operation permit and expansion permit directlyprocessing log and or chip to sawn wood, chip wood, veneer and plywood, laminating
veneer lumber with annual production capacity up to 6000 (six thousand) cubic metersshall be granted by Minister by taking into account the consideration of Governor.
(4) All forest produce primary industry operation permits other than those as referred to inparagraphs (1), (2) and (3) shall be granted by the Minister being responsible for industryaffairs by taking into account considerations of Minister and Governor.
Part SevenRights and Obligations of Permit Holder
Article 65
Each holder of timber and non timber forest produce primary industry operation permit shallbe entitled to:
a. security of business in running its business; and orb. services from the Government and Local Administration.
Article 66
(1) Timber and non timber forest produce primary industry operation permit holders shall:a. run their business in accordance with their permits:b. prepare and submit Annual Industry Raw Materials Fulfillment Plan (RPBBI);c. assist in empowering the community around the industrial location:d. submit periodic report to permit issuing authority and agency authorized to promote
and develop forest produce primary industry.
(2) Further provisions on obligations of timber and non-timber forest produce primary industry
operation permit holders as referred to in paragraph (I) shall be stipulated by virtue ofDecree of Minister.
CHAPTER VTITLE FOREST
Article 67
(1) Title forest shall be forest situated on a piece of land charged with title to land.
(2) Title forest as referred to in paragraph (1) shall be proven by the title or right to the land.
Article 68
Title forest shall be utilized by title holder.
-
7/31/2019 34_02_en
23/49
Article 69
(1) Utilization of title forest functioning as conservation and protection shall be made inaccordance with the prevailing legislation.
(2) The status of title forest functioning as conservation and protection as referred to as
paragraph (I) can be changed to forest area.
(3) In the event the status of title forest is changed to forest area as referred to in paragraph(2) the Government shall compensate the title holder in accordance with the prevailinglegislation.
(4) In the event the title forest functions as conservation or protected area the Governmentcan provide incentive for the title holder.
Article 70
(1) In respect of utilization of title forest functioning as production forest, any activity toproduce the forest produce in accordance with the potential and land bearing capacity
can be performed.
(2) Government. Provincial Administration. District or Town Administration shall develop titleforest through the institutional development.
Article 71
(1) Title forest utilization guidelines as referred to in Article 68 shall be stipulated by virtue ofDecree of Minister.
(2) District or Town Administration shall stipulate implementing directives of title forestutilization based on utilization guideline as referred to in paragraph (1).
CHAPTER VIFOREST AREA USE
Article 72
(1) Forest area use shall be aimed at arranging use of any part of forest area selectively fordevelopment outside the forestry without changing status and function.
(2) Forest area use for development outside forestry can only be made within:a. protected forest; andb. production forest.
(3) Forest area use as referred to in paragraph (2) shall include the use for:a. strategic purpose: and or
b. limited public interest.
(4) Forest area use for strategic purpose as referred to in paragraph (3) item a shall include:a. religious interest;b. defense and security:c. mining:d. power development and renewable energy technology installation;e. telecommunication network construction; orf. water supply network construction.
(5) Forest area use for limited public interest as referred to in paragraph (3) item b shallinclude construction of among others:a. public road and railways:
b. water supply and or sewer:c. drainage;
-
7/31/2019 34_02_en
24/49
d. water reservoir;e. public facilities;f. telecommunication repeater:g. radio station; andh. television relay station.
(6) Forest area use as referred to in paragraphs (4) and (5) shall be further stipulated byvirtue of Decree of President.
CHAPTER VIIFOREST PRODUCE DISTRIBUTION AND MARKETING
Article 73(1) To protect the state's rights to the forest produce and forest conservation, forest produce
distribution and marketing shall be made through the forest produce administration.
(2) All forest produce originating from state forest shall be measured and tested by thecompetent officer.
(3) The physical timber forest produce already measured and tested as referred to in
paragraph (2) shall be marked for legality.
Article 74
(1) Forest produce originating from title forest shall be subject to measuring and typedetermination.
(2) Measurement and forest produce type determination as referred to in paragraph (1) shallbe made by the competent officer.
(3) Forest produce already measured as referred to in paragraph (2) shall be provided withCertificate of Origin (SKAU) issued by Village Head or official of equal rank and thecertificate shall serve as forest produce legality certificate.
Article 75
(1) Each transportation. control or ownership of forest produce shall be furnished with forestproduce legality certificate issued by the competent official.
(2) Each transportation of forest produce as referred to in paragraph (1) shall be made toaddressee written in Forest Produce Legality Certificate (SKSHH) or Plant and WildlifeTransportation Certificate (SA TS).
(3) In case of difference between substance of forest produce legality certificate document asreferred to in paragraph (1) and physical condition of type, quantity and volume of forestproduce, the forest produce shall be declared not having any legal certificate.
(4) Documents to furnish with the transported. controlled or owned forest produce as referredto in paragraph (1) shall be:
a. Forest Product Legality Certificate (SKSHH) for forest produce originating from thestate forest;
b. Plant and Wildlife Transportation Certificate (SA TS) for plants and wildlife:c. Certificate of Origin (SKAU) for forest produce originating from title forest.
(5) SKSHH, SATS or SKAU shall be valid and used for transporting the timber and nontimber forest produce or plant and wildlife within the territory of the Republic of Indonesia.
(6) Blank form of SKSHH and SATS shall be printed by the Printing Company so appointed
by Minister.
-
7/31/2019 34_02_en
25/49
(7) Further provisions on forest produce administration as referred to in Article 73 paragraph(1) shall be stipulated by virtue of Decree of Minister.
Article 76
Forest produce in terms of Jog and chip timber raw material shall not be exported.
Article 77
(1) Authority to arrange. promote and develop marketing of timber and non-timber forestproduce not processed yet to domestic market and forest produce primary industry as rawmaterial shall be with the Minister.
(2) Authority to arrange. promote and develop marketing of timber and non-timber processedforest product to overseas market shall be with the Minister being responsible for tradingby taking into account considerations of the Minister.
(3) Provisions on arrangement, promotion and development of timber and non-timber forestproduce marketing as referred to in paragraph (1) shall be stipulated by the Minister.
Article 78
(1) In case the transported, controlled or owned forest produce is not furnished with anyforest produce legality certificate, it shall be declared illegal.
(2) Illegal forest produce as referred to in paragraph (1) shall be processed in accordancewith the prevailing legislation.
(3) Illegal forest produce as referred to in paragraph (2) shall be auctioned.
(4) Auction yield of illegal forest product as referred to in paragraph (3) already having theforce of law shall be allocated partly to incentive for the deserving party in saving the statewealth.
(5) Provisions on incentive providing for the deserving party in saving the state wealth asreferred to in paragraphs (3) and (4) shall be arranged by virtue of Joint Decree of theMinister and the Minister being responsible for finance.
CHAPTER VIIIPROMOTION, CONTROL AND SUPERVISION
Part OneGeneral
Article 79
(1) For orderly forest arrangement and forest arrangement planning and forest management,forest utilization and forest area use planning the Minister shall be authorized to promote,
control and supervise policy of Governor and District Head or Mayor.
(2) Minister, Governor and District Head or Mayor shall promote, control and supervise forestarrangement plan implementation and forest management. forest utilization and forestarea use planning by third party.
Part TwoPromotion and Control
Article 80
(1) Promotion as referred to in Article 79 paragraph (1) shall include provision of:a. guidelines;b. counseling;
c. training:d. direction; and or
-
7/31/2019 34_02_en
26/49
e. supervision.
(2) Provision of guidelines as referred to in paragraph (1) item a shall be aimed at organizingforest arrangement and forest management, forest utilization and forest area use planningby Provincial and or District or Town Administration including accountability, report andevaluation of performance of Governor and District Head or Mayor.
(3) Provision of counseling as referred to in paragraph (1) item b shall be aimed at preparingprocedure and work system.
(4) Provision of training as referred to in paragraph (1) item c shall be aimed at administrativeresources.
(5) Provision of direction as referred to in paragraph (1) item d shall include planning. andnational-scale activities.
(6) Supervision as referred to in paragraph (1) item e shall be aimed at performing a part offorest administration activities delegated to Provincial, District or Town Administration.
Article 81
(1) Control as referred to in Article 79 paragraph (2) shall include:a. monitoring;b. evaluation; and orc. follow up.
(2) Monitoring as referred to in paragraph (1) item a shall be any activity to collect data andinformation. policy and implementation of forest management.
(3) Evaluation as referred to in paragraph (1) item b shall be any activity to periodicallyevaluate success of sustainable forest management by type of permit.
(4) Follow up as referred to in paragraph (I) item c shall be follow up of monitoring and
evaluation findings for improved forest policy and management.
(5) Provisions on periodic evaluation of success of sustainable forest management asreferred to in paragraph (3) shall be stipulated by virtue of Decree of Minister.
Article 82
(1) Results of control by District Head/Mayor and Governor as referred to in Article 79paragraph (2) shall be followed up by third party.
(2) The third party shall report result of control follow up to the District Head or Mayor andGovernor.
(3) The District Head/Mayor and Governor shall report the result of control follow up to theMinister.
Article 83
(1) Follow up of control result can be in terms of:a. admonition; and orb. cancellation.
(2) Admonition as referred to in paragraph (1) item a shall be made by the Minister, Governorand District Head or Mayor.
(3) Cancellation as referred to in paragraph (1) item b relating to regional regulation shall be
issued by the Minister of Home Affairs at the recommendation of the Minister.
-
7/31/2019 34_02_en
27/49
(4) Cancellation as referred to in paragraph (1) item b regarding forest utilization permit shallbe issued by the permit issuing authority.
Article 84
Promotion and control guidelines as referred to in Articles 79 through 83 shall be stipulated by
virtue of Decree of Minister.
Part ThreeSupervision
Article 85
Provisions on supervision as referred to in Article 79 paragraph (2) shall be stipulated in aseparate Government Regulation.
CHAPTER IXADMINISTRATIVE SANCTION UPON
HOLDERS OF FOREST UTILIZATION PERMIT ANDFOREST PRODUCE PRIMARY INDUSTRY OPERATION PERMIT
Part OneGeneral
Article 86
To ensure status, forest area preservation and forest function preservation, each holder offorest utilization permit and forest produce primary industry operation permit shall in case ofviolating of the provisions outside penal provisions as provided in Article 78 of Law Number41 of 1999 regarding Forestry be subject to administrative sanction.
Article 87
(1) Administrative sanctions as referred to in Article 86 shall be in terms of:a. suspension of administrative service;
b. suspension of field activity;c. administrative penalty;d. work area reduction; ore. permit revocation.
(2) Administrative penalty as referred to in paragraph (1) item c shall be non tax staterevenue paid to the State Treasury Office.
Part TwoAdministrative Sanction of Forest Utilization Permit
Article 88
Holders of forest produce utilization operation permit or forest produce collection permit shall
be subject to administrative sanction in terms of suspension of SKSHH document service incase of failure to prepare and submit report as stipulated.
Article 89
Holders of area utilization permit, environmental service permit, forest produce utilizationpermit or forest produce collection permit shall be subject to administrative sanction in termsof suspension of field activity in case of:a. failure to administer the work area border:b. use of work equipment at quantity and or type not in accordance with the permit:c. failure to employ professionals in forestry and or others according to need.
-
7/31/2019 34_02_en
28/49
Article 90
(1) Administrative sanction in terms of suspension of administrative service and field activityas referred to in Article 87 paragraph (1) items a and b shall be for 1 (one) year as ofimposition of sanction.
(2) In case prior to the period of 1 (one) year as referred to in paragraph (1) the permit holderhas fulfilled the obligations, the sanction shall be lifted.
(3) In case the permit holder does not fulfill his obligations within 1 (one) year the permit canbe revoked after 3 (three) prior written warnings respectively effective for 30 (thirty)working days.
Article 91
(1) Holders of timber forest produce utilization permit in natural forest shall be subject toadministrative sanction in terms of penalty of:a. 10 (ten) times of PSDH for:
1. logging product exceeding the target tolerance of 5% (five percent) and total
volume target stipulated in Annual Action Plan (RKT);2. logging product exceeding the target tolerance of 3% (three percent) and total
volume target per type of log stipulated in Annual Action Plan (RKT); orb. 15 (fifteen) times of PSDH against volume of:
1. logging product prior to ratification of Annual Action Plan;2. logging product in the frame work of making corridor without consent or not in
accordance with that contained in the relevant permit;3. logging product below the allowable logging diameter;4. logging product from outside the permitted logging block; or5. logging product in the frame work of hauling road construction outside the block
of Annual Action Plan without consent.c. 20 (twenty) times of PSDH against. volume of:
1. timber from logging of trees designated as core tree without consent;
2. timber from logging of core trees without consent; or3. timber from repeat logging without consent.
(2) Holders of timber forest utilization permit in timber estate shall. be subject toadministrative penalty of 15 (fifteen) times of PSDH against volume of logging productoriginating from the corridor making without consent.
(3) Holders of timber and or non timber forest produce collection permit shall be subject toadministrative penalty of 10 (ten) times of PSDH against forest produce exceeding 5%(five percent) of volume target per type of forest produce stipulated in the permit.
Article 92
(1) Holders of area utilization permit or environmental service utilization permit shall besubject to administrative sanction in terms of work area reduction to maximum 20%(twenty percent) of working area, in case of:a. non fulfillment of production target in accordance with the ratified action plan; and orb. failure to secure the working area from various forest disturbance in accordance with
the action plan.
(2) Holders of forest produce utilization permit shall be subject to administrative sanction interms of work area reduction to maximum 20% (twenty percent) of working area, in caseof:a. contract or transfer of all business activities to other party without any written consent
from permit issuing authority;b. failure to plant in accordance with the planting action plan already stipulated; and or
c. failure to arrange the financial administration in accordance with forestry accountingstandard effective on timber forest produce utilization permit.
-
7/31/2019 34_02_en
29/49
(3) Work area reduction as referred to in paragraphs (1) and (2) shall be made after 3 (three)
written warnings of respectively effectively for 30 (thirty) working days.
Article 93
(1) Area utilization permit, environmental service permit or forest produce utilization permitcan be revoked in case the permit holder:a. fails to cooperate with cooperatives of the community around the forest;b. fails to commence concrete operation within 180 (one hundred eighty) days as of the
permit issue;c. fails to pay forestry charges in accordance with the prevailing legislation;d. abandons work area and works prior to permit expiration;e. transfer its operation permit to any other party without written consent from the permit
issuing authority; orf. is subject to penal sanction in accordance with Article 78 of Law Number 41 of 1999
regarding Forestry.
(2) Besides violating paragraph (1) forest produce utilization permit can be revoked in case
the permit holder:a. fails to implement silviculture system stipulated by the Minister;b. fails to fulfill liability to pay Afforestation Fund (DR) of timber forest produce in natural
forest; orc. fails to submit Annual Action Plan (RKT), Five-Year Action Plan (RKL) or Forest
Produce Action Plan within the given period.
(3) Forest produce collection permit can be revoked in case the permit holder:a. fails to pay charges of Forest Resource Fee (PSDH);b. fails to collect forest produce within 1 (one) month after issue of forest produce
collection permit;c. transfers the forest produce collection permit to any other party without written
consent from the permit issuing authority:
d. collects the forest produce not in accordance with that stipulated in the permit: ore. is subject to penal sanction in accordance with Article 78 of Law Number 41 of 1999
regarding Forestry.
(4) Revocation of area utilization permit, environmental service permit or forest produceutilization permit on the ground as referred to in paragraph (1) items a. b, c and d andparagraph (2) shall be made after 3 (three) written warnings by the permit issuingauthority respectively effective for 30 (thirty) working days.
(5) Revocation of area utilization permit, environmental service permit or forest produceutilization permit on the ground as referred to in paragraph (1) items e and f shall bemade without any prior warning.
(6) Revocation of forest produce collection permit as referred to in paragraph (3) items a andb shall be made after 3 (three) written warnings respectively effective for 10 (ten) workingdays.
(7) Revocation of forest produce collection permit on the ground as referred to in paragraph(3) items c and e shall be made without any prior warning.
Part ThreeAdministrative Sanction for
Forest Produce Primary Industry Permit HoldersArticle 94
Forest produce primary industry permit holders violating this Government Regulation shall be
subject to administrative sanction in terms of:a. industrial operation suspension:
-
7/31/2019 34_02_en
30/49
b. document service suspension; orc. industrial operation permit revocation.
Article 95
(1) Administrative sanction in terms of industrial operation suspension as referred to in Article
94 item a shall be imposed in case the permit holder:a. fails to prepare and submit Industrial Raw Material Fulfillment Plan (RPBI) within the
given period;b. fails to employ forest produce measuring and testing personnel.
(2) Sanction in terms of industrial operation suspension as referred to in paragraph (1) shallbe imposed until the permit holder can fulfill its obligations.
Article 96(1) Administrative sanction in terms of suspension of service rendering of Forest Produce
Legality Certificate (SKSHH) for industrial operation as referred to in Article 94 item bshall be imposed in case the permit holder:a. fails to prepare and submit Log Movement Report (LMKB) or Non-timber Forest
Produce Movement Report (LMHHBK); orb. fails to prepare and submit Processed Forest Produce Movement Report (LMHHO).
(2) Sanction in terms of suspension of service rendering of Forest Produce LegalityCertificate (SKSHH) as referred to in paragraph (1) shall be imposed until the permitholder fulfills its obligations.
Article 97
(1) Administrative sanction in terms of industrial operation permit revocation as referred to inArticle 94 item c shall be imposed in case the permit holder:a. expands the industrial operation without consent;b. relocates industrial operation without consent;
c. pollutes and damages environment exceeding the environment quality standard;d. accommodates or processes forest produce raw materials originating from illegal raw
material sources; ore. performs industrial activities not in accordance with provisions in the permit.
(2) Revocation of industrial operation permit on the ground as referred to in paragraph (1)items a, band c shall be made after 3 (three) written warnings by the permit issuingauthority respectively effective for 30 (thirty) working days.
(3) Revocation of industrial operation permit on the ground as referred to in paragraph (I)item d shall be made after court order is absolute.
Part Four
Procedure for Administrative Sanction ImpositionArticle 98
Procedure for administrative sanction imposition of forest utilization permit or forest produceprimary industry permit as referred to in Articles 87 through 97 shall be stipulated by virtue ofDecree of Minister.
CHAPTER XTRANSITIONAL PROVISIONS
Article 99
By stipulation of the Government Regulation:a. Forest Concession Right (HPH) and Forest Produce Collection Right granted based on
the legislation prior to the stipulation hereof shall remain effective until their expiration:
-
7/31/2019 34_02_en
31/49
b. Forest produce primary industry permit, industrial registration certificate permit grantedbased on legislation prior to stipulation of this Government Regulation shall remaineffective.
c. Application for extension or new application for timber HPH in natural forest and timberestate already given agreement in principle shall be processed by filing request.
d. Application for extension or new application for timber HPH in natural forest and timber
estate not yet given any agreement in principle shall be processed by auction as providedherein.
e. The authority of forest arrangement and forest management, forest utilization and forestarea use planning already delegated by the Government to the State-Enterprises shallremain effective but its implementation is adjusted to this Government Regulation.
CHAPTER XICLOSING PROVISIONS
Article 100
By stipulation hereof Government Regulation Number 6 of 1999 regarding Forest Exploitationand Forest Produce Collection in Production Forest shall become null and void.
Article 101
By stipulation of this Government Regulation. Implementing directive of GovernmentRegulation Number 6 of 1999 regarding Forest Exploitation and Forest Produce Collection inProduction Forest shall still remain effective provided not in contravention of this GovernmentRegulation nor revoked or changed by the implementing directives hereunder.
Article 102
This Government Regulation shall become effective as of the date of stipulation.
For public cognizance, it is instructed to promulgate this Government Regulation bypublishing the same in the State Gazette of the Republic of Indonesia.
Stipulated in JakartaOn June 8, 2002
PRESIDENT OF THE REPUBLIC OF INDONESIA,[signed]
MEGAWATI SOEKARNOPURI
STATE GAZETTE OF THE REPUBLIC OF INDONESIANUMBER 66 OF 2002
-
7/31/2019 34_02_en
32/49
ELUCIDATION OF
GOVERTMENT REGULATION OF THEREPUBLIC OF INDONESIA
NUMBER 34 OF 2002REGARDING
FOREST ARRANGEMENT AND FOREST MANAGEMENT,
FOREST UTILIZATION AND FOREST AREA USE PLANNING
GENERAL
Indonesian people are granted with and entrusted by the One Supreme God of natural wealthin terms of invaluable forest, therefore it should be managed and utilized properly based onnoble moral as a religious service and realization of gratitude to the One Supreme God.
In the frame work of forest management for optimum benefit from forest and forest area forcommunity welfare, principally all forest and forest areas can be managed by taking intoaccount nature, characteristics and priority thereof without changing their major functionsnamely conservation, protection and production. Forest management shall maintainequilibrium of those three functions.
By the effectiveness of Law Number 41 of 1999 regarding Forestry, Articles 22, 27, 29, 33, 34,36, 37 and 38 on Forest Arrangement and Forest Management, Forest Utilization and ForestArea Use Planning shall be made by granting area utilization permit, environmental serviceutilization permit, timber and non-timber forest produce utilization and timber and non-timberforest produce collection permit as well as forest area loan use permit. Therefore besideshaving the utilization right the permit holders shall also be responsible for all kinds ofdisturbance and damage to the forest and forest areas entrusted to them.
Convertible production -forest and forest. area under loan use status can be provided withtimber utilization/non-timber forest produce utilization permits based on provisions on timberand non-timber forest produce utilization permit in natural forest as stipulated herein.
For fair peoples economy development, small and medium scale business as well ascooperatives will be given ample opportunity to utilize forest.
State-Enterprises. Regional-State Enterprises and Indonesian Private Companies as well asCooperatives provided with operation permits in forestry shall cooperate with local operativesand periodically empower them to become tough, independent and professional cooperativebusiness units in arrangement to be able to keep up with the other economic actors.
To secure attainment of goal and target, the Government and Local Administration shallsupervise forest utilization.
To give legal basis for forest arrangement and forest management, forest utilization and forestarea use planning on equitable basis, it is necessary to stipulate a Government Regulation.
BY ARTICLE
Article 1Self-explanatory
Article 2Paragraph (1)
Forest management shall include:a. forest management and forest management planning:b. forest utilization and forest area use;c. forest rehabilitation and reclamation; andd. forest protection and natural conservation.This Government Regulation shall only stipulates the forest arrangement and
forest management, as well as forest utilization and forest area use planning.
-
7/31/2019 34_02_en
33/49
While forest rehabilitation and reclamation as well as forest protection and naturalconservation shall be provided in a separate Government Regulation.
Paragraph (2)Self-explanatory
Article 3Paragraph (1)
Self-explanatoryParagraph (2)
Delegation of forest arrangement and forest management, forest utilization andforest use planning in any particular territory and or activity forest shall take intoaccount regional characteristics and social and environmental condition closelyrelating to forest conservation and community's interest and requiring specialmanagement capability.Delegation of authority to such State Enterprises shall not include public andgeneral administrative authority.
Article 4Paragraph (1)
Forest arrangement and forest management, forest utilization and speciallydesignated forest area use planning can be determined in conservation,
protected and production forests.Paragraph (2)
Self-explanatoryParagraph (3)
Forest arrangement and forest management. Forest utilization and speciallydesignated forest area use planning shall be made by using the permit asprovided herein.
Paragraph (4)Self-explanatory
Article 5Paragraph (1)
Forest arrangement shall be initial activity in managing forest includingmanagement unit design by taking into account community's rights and forest
condition, grouping forest resources in accordance with ecosystem and forestpotential. block plotting.
Paragraph (2)Self-explanatory
Article 6Self-explanatory
Article 7Paragraph (1)
Item aNature preserve forest arrangement with nature borders design andexistence thereof shall not be changed and remain as intact as when itscondition is created.
Item b
Self-explanatoryParagraph (2)
Determination of arranged management area borders shall be based on themanagement unit map.Management plan can be furnished with area spatial plan reflecting functionempowerment such as permanent location to monitor bio natural resources andecosystem in the interest of educational scientific research including researchand education management facilities location.
Paragraph (3)Area division to blocks shall be adjusted to area potential and condition consistingamong others habitat rehabilitation, population rehabilitation, habitat and faunapopulation promotion blocks and other blocks shall be adjusted to thepreservation needs of bio natural resources and ecosystem thereof.
Article 8Paragraph (1)
-
7/31/2019 34_02_en
34/49
Self-explanatoryParagraph (2)
Self-explanatoryParagraph (3)
Item aCore zone shall be any part of national park which can only be utilized in
the interest of research and development supporting utilization, science,education and or supporting culture and as source of germ of life.
Item bUtilization zone shall be any part of national park which can only be utilizedfor natural resort and recreation, research and development supportingutilization, education and culture supporting activities.
Item cOther zones shall be those outside core zone and utilization zone whichdue to their function and condition are stipulated as particular zones suchas jungle zone, traditional utilization zone, rehabilitation zone and so forth.
Article 9Paragraph (1)
Vide elucidation of Article 7 paragraph (2)
Paragraph (2)Item a
Utilization block shall be designated for natural resort including tourismfacilities and infrastructure construction.
Item bPlant collection block shall be designated for plants collection.
Item cProtection block shall be designated for protecting species of flora andfauna against impacts of such activity.
Item dOther blocks shall be the part of great forest park area having othercondition thereby requiring special treatment for example traditionalutilization block, rehabilitation blocks and so forth.
Article 10Paragraph (1)
Vide elucidation of Article 7 paragraph (2).Paragraph (2)
Item aIntensive utilization block shall be any part of natural resort utilized asnatural tourist attraction including fulfillment of facilities and infrastructurethereof.
Item b.Limited utilization block shall be any part of natural resort utilized for naturaltourist attraction with special or particular activities.
Item cOther block shall be any part of natural resort of which the condition and
potential should be specially functioned, for example protection andrehabilitation blocks.
Article 11Paragraph (1)
Self-explanatoryParagraph (2)
Item aHunting block shall be the part of hunting park area designated for huntingactivity.
Item bUtilization block shall be any part of hunting resort designated for fulfillmentof hunting resort facilities and infr