Regulation on Forestry Licence and Forestry Product Acquisition Right (No. 21 of 1970)

Search - 12 Results - fisheries and not school and not funds and not mining file:///D/HTML/ins27438.htm[15.01.2025 17:47:17] Government Regulation No. 21 of 1970 On Forestry License and Forestry Product Acquisition Right. The President of The Republic of Indonesia, Having considered: a. that forests in Indonesia constitute a potential of natural resources immediately needed to reap maximum and sustaining benefit within the scope of national economic development; b. that to take maximum benefit from forests, it is necessary to found Forestry Exploitation and Forestry Product Acquisition to the maximum also; c. that for this purpose it is necessary to pass a Government Regulation on Forestry Concession and Forestry Product Levy Right within the scope of Law No. 5 year 1967 on Forestry Basic Provisions. Having observed: 1. Section (2), Article 5 of the 1945 Constitution; 2. Law No. 5 year 1967 on Forestry Basic Provisions; 3. Law No. 1 year 1967 on Foreign Capital Investment; 4. Law No. 6 year 1968 on Domestic Capital Investment; 5. Government Regulation No. 22 year 1967 on License Fee and Royalty; Has Decided: To stipulate: Government Regulation on Forestry Concession and Forestry Product Acquisition Right Chapter I. General Provision. Article 1. In this Government Regulation what is referred to by: (1) Forestry Concession shall be right to exploit forest within a forest region encompassing activities in wood cutting, reforestation and forest care, processing and marketing of forestry products in conformity with Forest Exploitation Working Plan according to effective provisions as well as based on forest sustained yield principles and commercial principles; (2) Holder of Forestry Concession shall be an Indonesian corporation, granted forestry concession by the Minister of Agriculture; (3) Forestry Exploitation Working Area shall be a forest area imposed with a forestry concession; (4) Decree on Forestry Exploitation Right shall be a license including its provisions granted by the Minister of Agriculture to undertake forestry exploitations in a forestry exploitation working area; (5) Forestry Product Acquisition Right shall be cutting Search - 12 Results - fisheries and not school and not funds and not mining file:///D/HTML/ins27438.htm[15.01.2025 17:47:17] right in accordance with the capacity which encompasses the forest area to a maximum of 100 (one hundred) hectares in extant within a period of 2 (two) years at the latest as well as to take wood and other forestry products in volume set in the relevant license for a period of 6 (six) months; (6) Forestry Exploitation Working Plan shall be plan of operations encompassing the entire forestry exploitation working area for the duration of the progress of forestry exploitations; (7) Financial obligation of forestry concession applicant shall be all charges imposed to the applicant since the entry of his application to the issuance of the Decree of the Minister of Agriculture; (8) Positive operation in implementation of forestry concession shall be field preparation with at least the presence of base camp consisting of buildings and equipment to discharge forestry operations. Chapter II. Requisites on Forestry License Application and Obligations of Forestry License Holder and Forestry Product Acquisition Right Holder. Article 2. (1) Requisites and procedure to submit application as well as procedure to grant forestry license shall be laid down by the Minister of Agriculture. (2) Charges related to implementation of Section (1) of this Article shall be imposed on the applicant party and assigned to the Agency, charged with the function/authority to administer forestry under the category of: 1. Survey charges 2. Advance payment against executive settlement. (3) Implementation of Section (2) stated above shall be subsequently regulated by the Minister of Agriculture. Article 3. (1) Holder of forestry concession shall pay license fee, royalties and other payments in conformity with effective regulations. (2) Holder of forestry product acquisition right shall pay royalties and other payments in conformity with effective regulations. (3) Holder of forestry concession shall draw-up a forestry exploitation working plan, comprising: a. Annual working plan which shall be delivered for the approval of the Minister of Agriculture two months prior to the start of cutting; b. Five year working plan which shall be delivered for the approval of the Minister of Agriculture within a period of one year after issuance of the Decree of forestry concession; c. Forestry exploitation working plan which encompasses the whole period of forestry exploitations which shall be Search - 12 Results - fisheries and not school and not funds and not mining file:///D/HTML/ins27438.htm[15.01.2025 17:47:17] delivered for the approval of the Minister of Agriculture within a period of three years since issuance of the Decree on forestry concession. (4) Holder of forestry concession shall develop forestry exploitation area based on the Forestry Exploitation Working Plan and abide by all provisions in forestry laid down by the Government. Article 4. Holder of forestry concession shall abide by all provisions in labor according to effective regulations and shall employ in adequate number forestry specialists who meet requisites according to appraisal of the Minister of Agriculture, especially in: a. Forestry planning and arrangement, b. Forestry processing, c. Wood measuring and test. Article 5. Holder of forestry concession shall sincerely found a forestry product processing industry in Indonesia as stated in the forestry exploitation working plan, confirmed by the Minister of Agriculture. Article 6. (1) On rights of traditional community and its members to collect forestry income based on traditional regulations in so far as according to facts they still exists, their implementation needs to be systematized so that it will not disrupt implementation of forestry exploitations. (2) Implementation stated in Section (1) of this Article shall be performed with the permission of holder of forestry concession who shall grant implementation of right stated in Section (1) of this Article which regulates it by virtue of a procedure as outcome of a conference between concession holder and traditional community through guidance and control of the Forestry Service. Article 7. Holder of forestry concession and holder of forestry product acquisition right shall impart all data and aid to officials who perform inspection, whether performed by officials authorized for it or forestry officials. Chapter III. Granting of Forestry Concession and Forestry Product Acquisition Right. Article 8. (1) Forestry concession in principle may be granted for clearance by way of selective cutting based on sustained yield of forests, processing and marketing of forestry products, charged with the obligation to undertake reforestation naturally or artificially and care of forests. (2) In a forestry area, cleared may be land for cultivation of food plants for their own consumption or buildings, land and water highway, bridges and the like Search - 12 Results - fisheries and not school and not funds and not mining file:///D/HTML/ins27438.htm[15.01.2025 17:47:17] directly needed for the implementation of said forestry exploitations, for one reason or another, as inserted in the forestry exploitation working plan. The buildings, land and water highway and bridges stated above shall become State property at the moment of expiration of the forestry concession. Article 9. Forestry concession may be granted to: a. State-owned undertaking, b. Private undertaking, c. Mixed undertaking. Article 10. (1) Forestry concession shall be granted for a maximum period of 20 (twenty) years and may be extended, if it is not contrary to public interest. (2) Extent of forestry area granted as operational area to concession holder as described in the map as attachment to the Forestry Concession Decree, issued by the Minister of Agriculture, shall concurrently constitute stipulation of forestry area. (3) Extent of forestry area granted to forestry concession applicant shall be in conformity with the forestry exploitation working plan and the production target submitted by the relevant party and confirmed by the Minister of Agriculture. (4) On protected forest, forest preserve, tourist forest and other forests for specific purposes, forestry concession and forest product acquisition right shall not be granted. Article 11. (1) Forestry product acquisition right may be granted exclusively to Indonesian nationals and Indonesian corporations with total capital owned by Indonesian nationals. (2) Holder of forestry concession and holder of forestry product acquisition right shall not catch nor take out protected animals and plants. Article 12. (1) Forestry concession shall be granted by the Minister of Agriculture, after hearing the opinion of the relevant Governor/Provincial Regional Chief. (2) Forestry product acquisition right shall be granted by the relevant Governor/Provincial Regional Chief in conformity with the directives of the Minister of Agriculture. Chapter IV. Termination of Forestry Concession. Article 13. Search - 12 Results - fisheries and not school and not funds and not mining file:///D/HTML/ins27438.htm[15.01.2025 17:47:17] (1) Forestry concession shall be terminated due to: a. Expiration of the granted period; b. Revocation applied by the Minister of Agriculture as sanction subjected to holder of forestry concession; c. Delivery by holder of forestry concession to the Government prior to the expiration of the granted period. (2) Expiration of forestry concession based on provision in Section (1) of this Article shall still require holder of forestry concession to: a. Pay for license fee and royalties as well as other financial obligations to the Government; b. Carry out all provisions laid down within the scope of expiration of forestry concession in conformity with effective provisions. Chapter V. Sanctions. Article 14. Forestry concession shall be revoked, because: a. The holder of forestry concession does not pay license fee at the stipulated period as inserted in the Decree on Forestry Concession; b. The holder of forestry concession does not pay royalty against lumber taken out of forestry concession area in conformity with effective regulations; c. The holder of forestry concession does not discharge definite operation within a period of 180 days after issuance of the Decree on Forestry Concession; d. The holder of forestry concession does not deliver its annual working plan, five year working plan and forestry exploitation working plan according to provisions in Section (3), Article 3 of this Government regulation; e. The holder of forestry concession leaves its area and task prior to the expiration of its forestry concession; f. The holder of forestry concession does not found a forest product processing industry according to provision in Article 5 stated above; g. The holder of forestry concession does not heed warnings and reminders given three times consecutively by the authorities. Article 15. Areal extent charged with forestry concession may be reduced because the concession holder does not succeed in fulfilling the production target stipulated in the forestry exploitation working plan confirmed by the Minister of Agriculture. Article 16. (1) Steps which infringe effective provisions and negligence of the concession holder which result in damage Search - 12 Results - fisheries and not school and not funds and not mining file:///D/HTML/ins27438.htm[15.01.2025 17:47:17] of forest shall be subject to fine consistent with the severity as well as intensity of damages which ensue and subsequently regulated by virtue of Regulation of the Minister of Agriculture. (2) Concession holder which deserts its operation prior to expiration of the period of its forestry concession without notice to as well as permission from the Government shall be subject to confiscation of property of its company. Chapter VI. Miscellaneous Provisions. Article 17. Licenses for forestry concession, clearance, plot of land and forestry concession issued prior to this Government Regulation becoming effective shall be reviewed and adjusted to the spirit and letters in Articles of this Government Regulations. Article 18. With the validity of this Government Regulation, provisions inserted in Articles 9, 10, 11 and 12 in Chapter II of Government Regulation No. 64 year 1967 on Delivery of a Part of Central Government affairs in marine fishery, forestry and small holders rubber to Autonomous Regions of Grade I shall be revoked. Chapter VII. Concluding Provisions. Article 19. This Government Regulation shall be effective as of the date of stipulation. To enable every person to be informed of it, an order shall be issued for enactment of this Government Regulation to be published in the Official Gazette of the Republic of Indonesia. Enacted in Djakarta on May 24, 1970 State Secretary of RI Signed, ALAMSJAH Stipulated in Djakarta on May 23, 1970 President of The RI Signed, SOEHARTO Official Gazette of The Republic of Indonesia Year 1970 No. 31. Elucidation on Government Regulation of The Republic of Indonesia No. 21 Year 1970 Re Forestry Concession and Forestry Product Acquisition Right General Elucidation: Intensive exploitation of natural resources under the Search - 12 Results - fisheries and not school and not funds and not mining file:///D/HTML/ins27438.htm[15.01.2025 17:47:17] category of forests constitutes an executive element in national economic development. Exploitation of forestry resources to the maximum should be undertaken by way of operations with modern means in the whole territory of Indonesia, whereas during the pre-World War II period forestry exploitation in Indonesia was limited almost exclusively to teak forests in Java and Madura. With the enactment of Law No. 5 year 1967 on Forestry Basic Provisions which regulate forestry exploitation by way of Articles 13 and 14 of Law No. 1 year 1967 on Foreign Capital Investment and Law No. 6 year 1968 on Domestic Capital Investment, forestry exploitation in Indonesia undergoes a swift growth as a consequence of the tremendous interest of both foreign and national operators in forestry capital investment. With the participation of private as well as foreign and national capital, intensive and modern forestry exploitation becomes possible by taking advantage of experience and skill of more advanced nations in this field. Forestry exploitation with modern technique will bring maximum results, provided it is applied to adequately extensive operational area/territory to enable establishment large-scale production projects and forestry product industry which furnish their contributions to national economic development. The policy as well as co-ordination within the scope of forestry exploitation spread to entire Indonesian territories, whether based on foreign capital or domestic capital investment, is undertaken by the Central Government and yet this factor does not overlook regional interest in which forestry exploitation is undertaken. In this case forestry area imposed with forestry concession according to fact comprises territorial right and/or rights of other people based on traditional law still prevailing. Its implementation is regulated in such a way that the relevant forestry exploitation does not conform to the forestry exploitation working plan. It is necessary to emphasize here that with the issuance of Government Regulation of Forestry Concession and Forestry Product Acquisition right which stem from the Forestry Basic Law due observance to the Foreign Capital Investment law and Domestic Capital Investment Law in Forestry, to avert emergence of dualism in the implementation of granting forestry concession and forestry product acquisition right, it becomes imperative to revoke Articles 9, 10, 11 and 12, Chapter II of Government Regulation No. 64 year 1957 on Partial Delivery of Central Government Affairs in Marine Fishery, Forestry and Small holders' Rubber to Autonomous Regions of Grade I in so far as they concern forestry exploitation. What is referred to by the term "Eksploitasi Hutan" (forestry exploitation) in Government Regulation No. 64 year 1957 is similar in substance to the term "Pangusahaan Hutan" (forestry exploitation) resorted to in Law No. 5 year 1967 on Forestry Basic Provisions. With the revocation of Article 10, Chapter II of Government Regulation No. 64 year 1957, terminated is the authority assigned to the Regional Government to issue forestry exploitation licenses under the categories of: Search - 12 Results - fisheries and not school and not funds and not mining file:///D/HTML/ins27438.htm[15.01.2025 17:47:17] a. Forestry concession license: namely; for a maximum period of 20 years and for a maximum forestry area of 10,000 ha. b. Clearance plot of land license: namely; for a maximum of 5 years and for a maximum forestry area of 5000 ha. c. Cutting license: namely; to take wood and other forestry products at a certain volume for a maximum period of 2 years. As a substitute, effective are provisions in Chapter III of this Government Regulation on Granting Forestry Concession and Forestry Product Acquisition Right in Article 13 jo Chapter I on General Provision in Sections (1) and (5) of Article 1. Taking into account the importance of forestry exploitation as well as with the scope of safe-guarding forestry sustained yield principles, granting of forestry concession is accompanied with various requisites and obligations to concession holder as inserted in provisions contained either in the Decree on Forestry Concession or separately set in another regulation. Therefore to provide legal basis for the implementation of granting forestry concession, provisions on requisites and obligations, deemed important by either the Government party or operator party, need to be stipulated by virtue of Government Regulation. Article by Article Elucidation: Article 1. Section (5) What is referred to by forestry product acquisition here is way of taking wood and other forestry products on a small scale, carried with the permission of regional Government. In this relation extent of forestry area with its products subject to acquisition is restricted to a maximum extent of 100 (one hundred) hectares and period restricted to 2 (two) years at the maximum. The license on granting forestry product acquisition right with its requisites is issued by the Governor/Provincial Regional Chief, c.q., Chief of Forestry Service in conformity with the directives of the Minister of Agriculture. In practice, acquisition of forestry products by way of wood cutting for local consumption demands so long a time that cutting trees in an area of 100 hectares cannot be consummated in 2 years. Article 2. Sufficiently clear. Article 3. Sufficiently clear. Article 4. In large-scale forestry exploitation, it is imperative to engage a labor force of no small number, working in the midst of forests generally far from town. In their labor relations, holders of forestry concessions have to abide by Search - 12 Results - fisheries and not school and not funds and not mining file:///D/HTML/ins27438.htm[15.01.2025 17:47:17] all provisions stipulated in legal regulations on labor. To maintain forestry sustained yield and for the success of forestry exploitation, certain operations have to be undertaken by forestry specialists, particularly in: a. Forestry planning and arrangement, b. Forestry processing, c. Wood measuring and test. Holder of forestry concession therefore is required to employ forestry specialists whose skill needs to be tested and recognized by the Minister of Agriculture. Article 5. Sufficiently clear. Article 6. Section (3) On forestry area where a clearance campaign is under way within the scope of implementation of forestry exploitation for public safety and security, in the surroundings of the relevant forest there actually are public rights, based on traditional law still extant to procure forestry products, but their implementation is suspended, until clearance tasks on the relevant forestry area are concluded. Article 7. Sufficiently clear. Article 8. Section (1) To assure forestry sustained yield, in principle forestry exploitation may be carried out only by way of selective cutting with its implementation subsequently regulated in General Directives of Forestry Exploitation. Wood cutting, dragging and transportation not infrequently cause damages inside and in the surroundings of the exploited forest and so in conformity with the forestry sustained yield principles, holder of forestry concession is required to re-plant in the damaged fields besides its duty to maintain forest care naturally. Article 9. a. What is referred to by State owned undertaking is either Central Government or Regional Government owned undertaking established on the basis of effective legal regulations. b. What is referred to by Private Undertaking is either national private undertaking or foreign private undertaking under the category of Indonesian Corporation. c. What is referred to by mixed undertaking is joint operation between State-owned undertaking or national private undertaking and foreign private undertaking or State-owned undertaking and national private undertaking by way of establishment of an Indonesian corporation. Article 10. Search - 12 Results - fisheries and not school and not funds and not mining file:///D/HTML/ins27438.htm[15.01.2025 17:47:17] Sufficiently clear. Article 11. Section (2) Holder of forestry concession and holder of forestry product acquisition right are not exempt from provisions in legal regulation on labor as well as those which regulate wild life protection and regulate plant protection. Article 12. Section (1) To facilitate and secure subsequent implementation, the Governor/Provincial Regional Chief in preparing his stand point asks the considerations of local Muspida. Article 13 - 19. Sufficiently clear. Supplement to Official Gazette of The Republic of Indonesia No. 2935.