Joint Regulation of the Minister of Finance No. 06.1/PMK.01/2007 and the Minister of Forestry No. 02/MENHUT-II/2007 on management of Reforestation Fund in Forest Development Account

7A MANAGEMENT OF REFORESTATION FUND IN FOREST DEVELOPMENT ACCOUNT (Joint Regulation of the Minister of Finance No. 06.1/PMK.Ol/2007 and the Minister of Forestry No. 02/MENHUT~1I/2007 dated February 5, 2007) THE MINISTER OF FINANCE AND THE MINISTER OFFORESTRY, Considering: that, in the framework of implementation of the provisions of Artide 15 of Government· Regulation No. 35/2002 on Reforestation Fund, it is necessary to stipu late Joint Regulation of the Minister of Finance and the Minister of Forestry on Management of Reforestation Fund in Forest Development AcCOunt; III view of: 1. Law No. 20/1997 on Non-Taxable State Revenues (Statute Bookof 1997No. 43, Supplement to Statute BookNo. 3687); 2. Law No. 41/1999 on Forestry (Statute Bookof 1999 No. 167, Supplement to Statute Book No. 3888); I 3. Law No. 17/2003on State Finances (Statute Bookof 2003 No. 47, Supplement to Statute BookNo. 4286); 4. Law No. 1/2004 on State Treasury (Statute Bookof 2004 No.5, Supplement to Statute Book No. 4355); 5. Government Regulation No. 35/2002 on Reforesta tionFund (Statute Bookof 2002 No. 67, Supplement to Statute BookNo. 4207); 6. Presidential Decree No. 187/M/2004; 7. Presidential Decree No. 20/M/2ooS; DECIDES: To stipulate: JOINTREGULATION OF1liE MINISTER OFFINANCE AND "THE MINISTER OF FORESTRY ON MANAGEMENT OFRE FORESTATION FUND IN FOREST DEVELOPMENT AC COUNT. Artide 1 Hereinafterreferred to as: 1. Reforestation Fund is funds for reforestation and re habilitation offorest and their supporting activities col lectedfrom Holders of Forest Concession from natural forests in form of logs. 2. Forest and Land Rehabilitation is an attempt to re cover,maintain, and increase functionsof forestsand land so that supportiveness, prodUctivity, and role of BUSiness News7492/30-3-2007 forests and land in supporting system of life support is maintained. 3. Corporate Body Enterprise is state enterprise, regional enterprise,private enterprise, and joint venturecom panybetween state enterpriseand privateenterprise! cooperatives operating forestry business. . 4. ForestFarmers is a group of persons in an organiZa tion unit who grow basedon togetherness, harmony, sameness of profession, and interest in exploitation of natural resources and wish to cooperate in the framework of improvement of businesses in forest plants and welfare of its members. S. Cooperatives is prime cooperatives established and with members consisting of individual persons as set forth in Law No. 25/1992 on Cooperatives. 6. Work Unit of the Ministry of Forestry is government lnstitutlon's work unit within the Ministry of Forestry that adopts System of Management of Finances of Public Service Agencies for funding of forest devel opment. Article 2 In the framework of management of Reforesta tion Fund of CentralGovernment, the Ministerof Finance opens andstipulatesForestDevetopment Acmuntin com mercial bank. Article 3 (1)AmountofReforestation Fundplaced for the first time in the Forest Development Aa:ount is stipulated by the Ministerof Finance. (2)Amountof Reforestation Fundasmeant in paragraph (1) is from Reforestation Fund placed in Minister of Finance's Account. Article 4 (1) Sources of funds in the Forest Development Account other than Reforestation Fund, as meant in Artitle 3, indude: a. Balance a. Balance of Reforestation Fund eachyear of Cen tral Government lessallocation to the Ministry of Forestry; b. Reforestation Fund from receipt of repayment of loan/credit and interest from borrowers, proceed of divestment, dividend, and fee from confiScated logs; c. Reforestation Fund of third party; d. Interest and/or jasagiro fromForestDevelopment Account; e. Government's return originating fromWork Unitof the Ministry of Finance. (2) Sources of fund in Forest Development Account as meant in paragraph (1) are paid to the General State Treasury Account to be placed in ForestDevelopment Account. ArticleS (1) Placement of fund asmeant in Article 4 paragraph(2) from General StateTreasury Accountto ForestDevel opment Account is performed by the Minister of Fi nance at the proposal of the Minister of Forestry. (2) Furtherimplementation of placement of fund asmeant in paragraph (1) is performed by the DirectorateGen eralof Treasury based on bUdget documentatiOn con veyed by the Directorate General of Budget. Article 6 (l)Management of Forest Development Account is per fanned by the Director General of Treasury pursuant to the laws in force. (2) Revenue from jasa giro or interest directly acquired from management of Reforestation Fund in Forest Development Account is paid to the State Treasury and used for forest and land rehabilitation and their supportingactivities. (3) Position of Reforestation Fund in Forest Development Account is notified by the Minister of Rnance to the Ministerof Forestryeachmonth. Article 7 (l)Funds in Forest Development Account as meant in Articles3 and 4 are transferred by the Minister of Fi Business News 7492/30-3-2007 8A nance or his authorized officer to Work Unit of the Ministryof Forestrybased on proposal of the Minister of Forestry. (2)The proposal of the Minister of Forestry as meant in paragraph (1) is completed with Operational Plan of Work Unit of the Ministry of Forestry and Business and BudgetPlan ratified by the Ministerof Finance. (3) The Operational Plan of the Work Unit of the Ministry of Forestry andthe Business and Budget Plan asmeant in paragraph (2) refer to five-yearlyprogramof forest and land rehabilitation arranged jointly by the Minis ter of Forestry and the Minister of Finance in accor dancewith their respective duties and functions. (4) Transfer of fund from ForestDevelopment Account to WorkUnit of the Ministryof Forestryasmeant in para graph (1) is implementedatthe requestof the Direc tor General of Budget. Artide 8 (1) Funds received by Work Unit of the Ministry of fo restry are only usedfor Forest and Land Rehabilitation under loan scheme and constitutecircularfundsfor: a. Corporate Body Enterprises; b. Cooperatives; and c. Forest Farmers. (2)Corporate BodyEnterprises andCooperativeS asmeant in paragraph (1) operate forestry businesses. (3)Corporate Body Enterprises as meant in paragraph (1) clause a consist of state enterprise, regional en terprise, private enterprise, and joint venture com panybetweenstate enterpriseandprivateenterprise/ cooperatives. (4) Procedure of allocationof loanasmeant in paragraph (1) is further stipulated by Head of Work Unit of the Ministry of Forestry after securing approval of the Min ister of Forestry. Article 9 (1)Corporate Body Enterprises and Cooperatives asmeant in Article 8 paragraphs (2) and (3) entitled to receive loan shall meet the follOWing requirements: a. Being a. Being holders of plant forest concession; b. Having professionals in forestry field; c. Not being included in banking black list; and d. Having Taxpayer's Identification Number (NPWP) and not having outstanding taxes. (2) Forest Farmers as meant in Article 8 paragraph (1) entitled to receive loan shalt meet the requirements for Holder of Plant Forest Concession in production forests. (3) Further provisions regarding Forest Farmersentitled to receive loan are stipulated by the Minister of Foresby. Article 10 (l)The loan as meant in Article 9 paragraph (1) is sub jected to interest with the follOWing conditions: a. Corporate Body Enterprises are subjected to inter est equal to Interest rate applicable In commercial banks; b. Cooperatives and Forest Farmers are subjected to interest equal to interest rate applicable in Deposit Guarantee Institution (LPS). (2) In case that the loan is received by syariah scheme, regulations regarding profit share shall be in accor dance with standards of the best syariah bank ac cording to Bank Indonesia's criteria. (3) Interest as meant in paragraph (1) and/or profit share as meant in paragraph (1) is counted since loan is transferred from the account of the Work Unit of the Ministry of Forestry to borrower's account. Article 11 (1)ln case that the Corporate Body Enterprise borrower as meant in Article 8 paragraph (3) does not fulfill its obligations as set forth in the loan agreement, it is subjected to monetary charge of two percent (2%) per annum plus interest equal to interest rate appli cable in commercial bank per annum. (2)On Cooperatives or Farmers borrower, if chairman of the group and members of the group do not meet the obligations as set forth in the loan agreement, they shall jointly and severally responsible for fulfilling their obligations. Business News 7492/30-3-2007 9A Article 12 Provisions regarding term of loan, repayment of principal amount, payment of interest or p'rofit share, and sanctions are further stipulated in the loan agreement between Work Unit of the Ministry of Forestry and bor rower. Article 13 Development and supervision of operation of for est and land rehabilitation activities by Corporate Body Enterprises, Cooperatives, and Forest Farmers are per formed by the Work Unit of the Ministry of Forestry. Article 14 (1)Corporate Body Enterprises, Cooperatives, and for est Farmers, at least once in every three (3) months, submit report to the Work Unit of the Ministry of Forestry. (2)The Work Unit of the Ministry of Forestry, at least once in every three (3) months, submits finandal state ments and report on forestry techniques to the Minis ter of Finance and the Minister of Forestry. Article 15 Further provisions necessary in the framework of implementation of this Joint Regulation are stipulated by the Minister of Finance and/or the Minister of Forestry jointly or individually in accordance with their respective duties. Article 16 This Regulation comes into effect as from the date it is stipulated. For publiccognizance, th"is Regulationis published by placing it in the State Gazette of the Republic of Indo nesia. Stipulated in Jakarta On February 5, 2007 THE MINISTER OF THE MINISTER OF RDRESTRY ANANCE ~d ~d H.M.S. KABAN SRI MULYANI INDRAWATI ===(E}===