Decree No. 127/Kpts-II/2003 on Administration of Forest Products Coming from Working Areas of Perhutani for Provinces in Java

24A ADMINISTRATION OF FOREST PRODUCTS COMING FROM WORKING AREAS OF PERHUTANI FOR PROVINCES IN JAVA (Decree of the Minister of Forestry No. 127/Kpts-II/2003 dated April 3, 2003) THE MINISTER OF FORESTRY, pages 19A - 20A and so on) on the authority of the government and the authority of provinces as au Considering: tonomous regions; a. that Article 73 in Chapter VII of Government Regula tion No. 32/2002 stipulates that distribution and mar- 7. Government Regulation No. 39/2001 (BN No. 6698 keting of forest products are controlled through ad- pages lA - SA) on de-concentration; ministration of forest products in the framework of protecting state rights to forest products and forest 8. Government Regulation No. 52/2001 on seconding conservation; tasks; b. that pursuant to legislation in force, the manage- 9. Government Regulation No. 34/2002 (BN No. 6828 ment of forests in Java, particularly protected and pages 9A - 15A and so on) on forest arrangement production forests in Banten, Central Java and East and formulation of plans for management of forests, Java has been entrusted to a state-owned enterprise exploitation of forests and the use of forest areas; operating in the forestry affairs, namely Perhutani; c. that in connection with the matters as meant in points a and b, it is deemed necessary to stipulate the ad ministration of forest products coming from working areas of Perhutani for provinces in Java by a decree of the Minister of Forestry; In view of: L Law No. 5/1990 on conservation of biological re sources and their ecosystems; 10.Government Regulation No. 35/2002 (BN No. 6838 pages A - l0A) on reforestation fund; 11.Presidential Decree No. 102/2001 on the status, tasks, function, organizational structures and working ar rangements of ministries; 12.Presidential Decree No. 228/M/2001 on the estab lishment of the Mutual Cooperation Cabinet; "13.Decree of the Minister of Forestry No. 123/Kpts-II/ 2. Law No. 23/1997 (BN No. 6092 pages 19A.- 21A) on 2001 on the organization and working arrangement environmental-management basic provisions; of the Ministry of Forestry; 3. Law No. 22/1999 (BN No. 6361 pages lA- SA and so 14.Decree of the Minister of Forestry No. 126/Kpts-Il/ on) on regional administration; 2003 on administration of forest products; 4. Law No. 41/1999 (BN No. 6412 pages lA - 6A and so DEC I D E S : on) on forestry affairs; To stipulate : THE DECREE OF THE MINISTER OF FINANCE ON AD S. Government Regulation No. 14/2001 (BN No. 6612 MINISTRATION OF FOREST PRODUCTS COMING FROM pages 3A - 4A) on the change in the legal status of WORKING AREAS OF PERHUTANI FOR PROVINCES IN State Public Corporation (Perum) Perhutani into a JAVA limited liability company; 6, Government Regulation No. 25/2000 (BN No. 6471 Business [\Jews T261/16-9-200S CHAPTER I GENERAL PROVISION A1ticle ... , , Article 1 Referred to in this decree as: 1. Administration of Forest Products shall be activities covering the administration of planning for produc tion, harvesting or felling, marking, measuring and testing, transportation/distribution and collection, processing and reporting. 2. Forest Products shall be biological materials result ing from forests and their processing products, ex cept wild plants and animals. 3. Non-Timber Forest Products shall be forest products such as rattan, resin, ramin oil, bark etc resulting from forests as well as their processing products. 4. Found Timber-Forest Products shall be timber found in forest areas of Perhutani, coming from both fell ing by communities and other felling outside the pro duction of Perhutani. 5. Corporate Class shall be business classification in the forestry sector on the basis of kinds of production. 6. Felling Cluster shall be a specified size stipulated for felling in the period of forest-conservation regula tory plan. 7. Working Block shall be part of felling cluster for in terests of the felling management. 8. Forest-Product Collecting Place (TP) shall be a place designated to collect woods and/or non-timber for est products around felling/harvesting/collecting place of forest products already stipulated by KKPH/ administrator. 9. Timber Collecting Place (TPK) shall be a place stipu lated and functioning to receive, collect and release logs and/or non-timber forest products whose clas sification is further stipulated by a decision of re gent/mayor. 10.Timber Selling Place (TPn) shall be a place stipu lated and functioning to receive, collect and release logs and/or non-timber forest products, which is stipu Business News 7261/16-9-2005 25A Jated by a decision of Head of Unit as TPn located in forest area or outside forest area. 11. Industrial TPK shall be TPK located in location of Primary Forest Product Industries belonging to Perhutani. 12.Perhutani's primary timber-forest product industry is an industry belonging to Perhutani/KSP, which pro cesses logs into semi-finished goods in the form of sawn timber or veneer. 13.Perhutani's primary non-timber-forest product indus try is an industry belonging to Perhutani, which pro cesses non-timber forest products in crude form into semi-finished goods or finished goods. 14.Cruising Result Report (LHC) or previously called the Clamp List shall be a document containing no., kind, height, diameter and estimated volume of trees ob tained from result of inventory of upright of ever cruised tree in the felling cluster/block plan. 15.Cruising Checking shall.be activity to check cruising results and implemented by personnel of institution in charge of forestry affairs in regencies/cities, ac companied by planning personnel of Perhutani's For est Planning Section with intensity 10%. 16.Annual Felling Recapitulation of LHC shall be a docu ment resulting from the processing of data about trees from LHC or clamp list of every working cluster, covering the classification of kinds of trees which can be felled, class of diameter, quantity of trees and estimated volume of woods by calculating Fp and Fe ratified by regent/mayor. 17.Annual Working Plan (RKT) shall be a detailed forest management plan for one year as elaboration of the Forest Conservation Regulatory Plan (RPKH). 18.Log shall be part of a tree already cut in accordance with the use, consisting of tool wood, logging waste and special sort. 19.Specifically Sorted Wood shall be wood usually used for ..... for special need in accordance with approval of di rectors. 20.Numbered Tool Wood shall be log having a diameter of30 cm and over, with no. of wood, diameter, length, volume and month/year of felling being put on the outer side by using slag hammer. 21.Not-number Tool Wood shall be wood with a diam eter of 30 cm (4 cm to 29 cm) and fixed quadrangle wood or sawn timber with any of its sides less than 20 cm. 22.Brongkol Wood shall be wood with unlimited diam eter, which according to the shape and size cannot be used for• tool/carpentry wood and has a length of 90 cm at the maximum. 23.Fire Wood shall be wood with a diameter of 4 cm up to 15 cm, which according to the shape and size cannot be used for tool/carpentry wood. 24.Numbering and marking of stalk shall be the grant ing of marks, in the form of no. of cluster, regional code of BKPH, no. of wood, size and volume on wood in felling location by using black color/asphalt. 25.DK Tok Hammer shall be a tool to put sign of legality on logs coming from Perhutani, containing code of the Ministry of Forestry, Province, Regency/City and Serial No. of Tok Hammer. 26.Measuring Book shall be a daily record of results of felling/harvesting made in felling cluster, containing no. of stalk, kind, length and volume of logs already put mark on the wood physic from the relevant an nual felling cluster/block and used as the basis for completing Report on Felling/Harvesting Results (LHP). 27.Officials Ratifying Report on Production Result (P2LHP) shall be Perhutani's employees fulfilling the minimum qualification as forest product verifiers ap pointed and assigned, responsible and authorized to ratify report on results of felling/harvesting of logs/ brongkol wood/fire wood subsequently called P2LHP Business News 7261/16-9-2005 26A and ratify report on results of production of non-tim ber forest products called P2LP-HHBK. 28.Officials Issuing SKSHH (P2SKSHH) shall be Perhutani's employees fulfilling the minimum qualifi cation as forest product verifiers appointed and as signed, responsible and authorized to issue docu ment of SKSHH in TPK, Tpn; Perhutani's Primary tim ber-forest product industries and Primary non-tim ber-forest product industries. 29.Officers Examining Receipt of Logs/Sawn Timber/ HHBK (P3KB/P3KB/P3HHBK) shall be Perhutani's em ployees fulfilling the minimum qualification as forest product verifiers appointed and assigned, responsible and authorized to examine longs/sawn timber/non timber forest products received by Perhutani's Pri mary timber-forest product industries and Primary non-timber-forest product industries. 30.Report on Results of Felling/Harvesting of Logs (LHP KB) shall be a document containing no. of stalk, kind, length, diameter and volume of numbered tool wood or containing no. of stalk, kind, length, diameter and volume of not-numbered tool wood from results of tree felling in stipulated cluster/block, which is pre pared in TPK/TPn. 31.Report on Production of Non-Timber Forest Products (LP-HHBK) shall be a record of result of production/ harvesting/collection of non-timber forest products (HHBK), containing kind and size (volume/weight) of HHBK and made in stipulated collecting place. 32.Fixed wood shall be quadrangle wood processed di rectly from log by using axe, chain saw or the similar tool outside primary timber-forest product industries. 33.Certificate of Legitimacy of Forest Product (SKSHH) shall be a document certifying the legitimacy of trans port, control and ownership of forest products as evi dence of legality of forest products granted by the authorized official. 34.List of Forest Product (DHH) shall be a document containing no. and date of LHP, no. of stalk, kind of wood ..... wood, length, diameter and volume of every stalk for logs; or serial number of bundle, kind of wood, slze of sort, number of pieces/bundles and volume for processed wood; or kinds of HHBK, number of bundles and weight for HHBK, which constitutes an attachment inseparable from document of SKSHH. 35.Report on Mutation of Logs (LMKB) shall be a docu ment of mutatlon of wood, containing initial stock, addition, reduction and final stock of log made in TPK/TPn/Perhutani's Industrial TPK. 36.Report on Mutation of Non-Timber Forest Products (LMHHBK) shall be a document of mutation of non timber forest products, containing initial stock, addi tion, reduction and final stock of log made in TPK/ TPn/Perhutani's Primary Non-Timber Forest Product Industries. 37.Report on Mutation of Processed Forest-Product (LMHHO) shall be a document of mutation of pro cessed forest products, containing initial stock, addi tion, reduction (sales and consumption) and final stock of processed forest products in industries, con sisting of Report on Mutation of Result of Processed Timber-Forest Products (LMHHOK) and Report on Mutation of Results of Processed Non-Timber Forest Products (LMHHBOK). 38.Forest-product measuring and testing officers shall be Perhutani's employees having the minimum quali fication of forest product verifiers who can be autho rized and given responsibility for stipulating the size, kind, and quality of forest products. 27A 39.Cooperation Partner of Forest-Product Processing (KSP) shall be a model of mutual beneficial coopera tion in the processing of forest products between Perhutani and working partners in the framework of diversification and enhancement of the value of tim ber forest products as well as utilization of market opportunities in a bid to develop the corporate busi ness. 40.Auction Sale shall be the sale of wood produced by Perhutani by means of auction in TPK/TPn. Business News 7261/16-9-2005 41:.Contract-based Sale shall be the sale of teak wood of Perhutani through selling contract for a portion of wood, stipulated by decision of the Executive Direc tor of Perhutani. 42.Under-hand Sale shall be the sale of logs produced by Perhutani, which is realized directly to buyers. 43.Director General shall be the Director General in charge of Forestry Production Development. 44.Provincial Service shall be service in charge of for estry affairs in provinces. 45.Regental/Municipal Service shall be service in charge of forestry affairs in regencies/cities. 46.Center for Certification of Forest Product Verifiers (BSPHH) shall be a technical executive unit in the field of certification of forest product verifiers, sub ordinate and responsible to the Director General of Forestry Production Development. 47. Perhutani shall be a state-owned enterprise manag ing forests in Java on the basis of the delegation of authority as stipulated in legislation in force. 48.Directors shall be executives in the Office of Perhutani's Executive Director, consisting of a presi dent director and directors. 49.Units of Perhutani shall be working units of Perhutani, divided into 3 (three) units, namely Unit I Central Java, Unit II East Java and Unit III West Java/Banten. SO.Unit of Forest Stakeholders (KPH) shall be part of forest management area in working area of Units of Perhutani. 51.Part of Forest Stakeholder Unit (BKPH) shall be part of forest management area in area of KPH. Article 2 (1)The administration of forest products resulting frorn working areas of Perhutani for provinces in Java shall aim ..... aim at providing guidelines for personnel of Perhutani in executing activities of forest exploitation so that the state interests in the form of forest conserva tion, state income and utilization of forest products can be achieved optimally. (2)Objects of administration of forest products shall be all kinds of forest products, except wild plants and animals coming from working areas of Perhutani for provinces in Java. (3)Perhutani shall be assigned and authorized to un dertake the administration of forest products as stipu lated in this decree. Article 3 (!)All forest products coming from state forests shall be measured and verified by measuring and verifying officers. (2)Procedures for the measuring and verification of for est products as meant in paragraph ( 1) shall be ln accordance with the provisions in force. CHAPTER III REAUZATION OF ADMINISTRATION OF FOREST PRODUCTS Part One Planning of Production and Felling/Harvesting Article 4 (!}Timber cruising shall be applied in every area of KPK, which will be felled/harvested and the results shalt be reported in the form of Report on Cruising Re sults (LHC) by using model of form DK.PHT.01.a (At tachment I.Al). (2)The timber cruising as meant in paragraph (1) shall be done not later than December, 2 (two) years be fore the felling/harvesting with cruising intensity 100%. (3)In the case of spacing-oriented felling plan, timber cruising shall be done with sampling intensity 2.5% (two point five percent). (4)LHC as meant in paragraph (1) shall be conveyed to Business News 7261/16-9-2005 28A l'egents/mayors not later than December, two years before the felling/harvesting as the basis for cruising checking with a copy made available to Heads of Provincial Service, Heads of Regental/Municipal Ser vice and Director General. (S)Based on the LHC as meant in paragraph (4), cruis ing checking shall be done with intensity 10% (ten percent) not later than December, one year before the felling/harvesting. (6)Based on results of the cruising checking as meant in paragraph (5), and in the case of the results fulfill ing the requirements, Heads of Regental/Municipal Service shall make Annual Felting Recapitulation of LHC by using form of model DK.PHT.01.b (Attach ment l.A.2) and convey it to regents/mayors. (7)The annual felling recapitulation of LHC as meant in paragraph (6) shall be ratified by regents/mayors not later than the end of June, 6 (six) months before the felling/harvesting and convey to adrnlnistrator/KKPH with a copy made available to Heads of Provincial Service, Heads of Regental/Municipal Service and Director General. (S)Regents/Mayors can assign heads of Regental/Mu nicipal Service to ratify Annul Felling Recapitulation of LHC. Part Two Measuring and Numbering of Wood in Forest Article 5 (!)Trees already felled shall be divided, cut, measured, numbered and marked. (2)The division of stalk as meant in paragraph (1) shall be done by referring to the provisions already stipu lated by the Executive Director of Perhutani. {3)The cutting of stalk as meant in paragraph (1) shall be done by principles of stalk by stalk management with sequence of cutting starting from the bottom side to tip by observing the quality of wood. (4)The measuring of stalk as meant in paragraph (1) shall ..... shall be done by referring to the measuring provi sions in force. (S)The numbering and marking of stalk shall be follow no. of trees on LHC of Annual Felling. Article 6 (l)The numbering and marking of numbered tool wood (A.III) shall be done in two parts of the smallest wood tip, separated by vertical line by using b.lack color paint/asphalt, namely left side (A) and right side (B). (2)Side A shall be provided for putting number and marks, no. of cluster, code of BKPH, no. of wood, size (length, diameter, and volume) of wood in fell ing cluster, while Side B shall be provided for mark ing and numbering when the wood is located in TPK/ TPn. (3)In the case of one tree being cut into several parts of stalk, the numbering of stalk shall start from let ter A in the cut of the bottom part and so forth. (4)Every stalk already given no. of stalk and measured as meant in paragraph ( 1) shall be recorded every day into the measuring book by using form of model DK.PHT.02 (Attachment I.B). (S)Tree stump shall be marked by using asphalt, cover ing: a. serial no. felling; b. no. of felled tree; c. date of felling; d. name and address of feller; e. initial of felling supervisor. Article 7 (l)The numbering and marking of not-numbered tool wood (A.I and A.II) shall be done by means of cali brating the size (length and diameter) by using black paint/asphalt on outer side of wood. (2)The marking of brongkol wood in collection place/ TPn by means of putting a writing BRK in any of outer sides by using black paint/asphalt. Business News 7261/16-9-2005 29A (3)The marking of fire wood in collection place/TPn by means of putting a writing KBkr strip mark in string of fire wood by using black paint/asphalt. Part Three Transport of Forest Products in Forest Article 8 (l)The transportation of wood, be it numbered tool wood, not-numbered tool wood, brongkol wood, fire wood and non-timber forest products from TP to TPK or TPn shall be accompanied by a Transport List (DP) issued by Perhutani's officer, by using form of model DK.PHT.21 (Attachment I.K.1). (2)ln the case of The transportation of other wood/for est products from collection places to TPK/TPn need ing transit in other collection places, the transporta tion shall be accompanied by Transit Transport List (Transit DP) issued by Perhutani's officer, by using form of model DK.PHT.21a (Attachment I.K.2). (3)The transport list and transit transport list as meant in paragraphs (1) and (2) shall function as transport document and evidence of legality of forest prod ucts. (4)The appointment of officers issuing the transport list and/or transit transport list shall be further stipu lated by a decision of the Head of Forest Stakeholder Unit/ Administrator. Part Four Formulation of LHP-KB, Ratification of LHP-KB, Fomulation of LP-HHBK and Ratification of LP-HHBK Paragraph One Formulation of LHP-KB Article 9 (l)In the case of logs (AI, All and AIII) being already received in TPK/TPn , LHP-KB shall be made by us ing form of model DK,PHT.05 (Attachment I.01) (2)Formulation of LHP-KB as meant in paragraph (1) shall be based on results of re-measuring of logs, covering the measuring of length, diameter and vol ume carried out by LHP-KB in TPK{TPn. (3) Based ..... (3) Based on the results of the measuring as meant in paragraph (2), wood tip of Side B shall be numbered and marked by uslr:i,;slag hammer and white paint by officer making LHP-KB. (4)Slag hammer shall be used for printing: a. month and year; b. no. of TPK/TPn; c. Length and diameter or length, width and thick ness; d. Content/volume. (S)The white paint shall be used for writing: a. quality mark; b. no. of location; c. sold mark. (6)LHP-KB shall be made twice per month, namely at the mid and end of very month. (7)LHP-KB shall be made in accordance with the re spective felling clusters so that in the event that fell ing cluster is more than one in one felling year, LHP KB shall be made for the respective· felling clusters separately. (B)In the case of the felling being not realized, LHP-KB Nil shall be made by mentioning reasons. Article 10 (l)At least one personnel making LHP-KB shall be placed in every felling block. (2)In the case of a felling block being located in two areas of BKPH or more, LHP-KB shall be made in the respective BKPH. Paragraph Two Ratification of LHP-KB Article 11 (l)At the mid and end of every month, personnel mak ing LHP-KB shall convey LHP-KB proposal to P2LHP by enclosing payment form of PSDH of the logs with a copy made available to Head of Regental/Munici pal Service in their respective working areas. Business News 7261/16-9-2005 30A (2)Based on the LHP-KB proposal as meant in para graph (1), P2LHP shall promptly undertake inspec tion in accordance with the inspection procedures as regulated In Attachment III. (3)In the case of log physic being declared suitable on the basis of results of inspection, LHP-KP shall be promptly ratified by P2LHP and the logs shall be ham mered by Tok DK Hammer as contained in specimen in Attachment V in both tips of logs. (4)In the case of longs being necessary to carry promptly, LHP-KB can be ratified first by following the ratification procedures as meant in paragraphs (2) and (3). (S)LHP-KB shall be made in 6 (six) copies with the des ignation as follows: a. 1st sheet to KKPH/administrator; b. 2nd sheet to Forest Planning Section; c. 3rd sheet to Administrator Adjutant d. 4th sheet to Planning Assistant; e. 5th sheet to KRPH; f. 6th sheet to P2LHP. (6)Based on LHP·KB already ratified, KKPH/Administra tor shall convey report on results of production to head of unit and regental/municipal forestry service. (7)Tok DK Hammer shall be stored by P2LHP in a locked place/deposit box. Paragraph Three Formulation of LP-Brongkol Wood and LP-Fire Wood Article 12 (l)In the case of brongkol wood and/or fire wood al ready received in collection place, LP-Brongkol Wood/ LP-Fire Wood shall be made by using form of model DK.PHT.OSa (Attachment I.D2). (2)Formulation of LP-Brongkol Wood and/or Fire Wood as meant in paragraph (1) shall be based on results of measuring by staple meter, carried out by person nel making LP-Brongkol Wood/LP Fire Wood. (3)LP-Brongkol Wood/LP Fire Wood shall be made twice in one month, at the mid and end of month. (4) In •.... ( 4)In the case of the felling/harvesting of brongkol wood/ fire being not realized, Nil LP-Bronkol Wood/Fire Wood shall be made by mentioning reasons. Paragraph Four Ratification of LP-Brongkol Wood and LP-Fire Wood Article 13 (l)At the mid and end of every month, personnel mak ing LP-Brongkol Wood/LP-Fire Wood shall convey pro posal of LP-Brongkol Wood/LP-Fire Wood to P2LHP by enclosing payment form of PSDH of the brongkol wood/fire wood with a copy made available to Head of Regentaf/Municipal Service in their respective working areas. (2)Based on the LP-Brongkol Wood/LP-Fire Wood pro posal as meant in paragraph (1), P2LHP shall promptly undertake inspection in accordance with the inspection procedures as regulated in Attachment III. (3)In the case of brongkol and/or fire wood being nec essary to carry promptly, LHP-KB can be ratified first by following the ratification procedures as meant in paragraph (2). ( 4) LP-Brongkol Wood/LP-Fire Wood shall be made in 6 (six) copies with the designation as follows: a. 1st sheet to KKPH/administrator; b. 2nd sheet to Forest Planning Section; c. 3rd sheet to Administrator Adjutant d. 4th sheet to Planning Assistant; e. 5th sheet to KRPH; f. 6th sheet to P2LHP. 31A (S)Based on LP-Brongkol Wood/LP-Fire Wood already . ratified, KKPH/ Administrator shall convey report on results of production to head of unit and regental/ municipal forestry service. Paragraph Five Formulation of LP-HHBK Article 15 {l)In the case of non-timber forest products being col lected/harvested, LP-HHBK shall be made by using form of model DK.PHT.05.c (Attachment I.D.4). Business News 7261/16-9·2005 (2)The formulation of LP-HHBK as meant in paragraph (1) shall be based on results of measuring of non timber forest products by personnel formulating LP HHBK. (3)LP-HHBK shall be made twice per month, namely at the mid and end of month. (4)In the case of the harvesting/collection of forest prod ucts being not realized, LP-Nil HHBK shall be made by mentioning reasons. Paragraph Six Ratification of LP-HHBK Article 15 (l)At the mid and end of every month, personnel mak ing LP-HHBK shall convey LP-HHBK proposal to P2LP HHBK by enclosing payment form of PSDH of the non-timber forest products with a copy made avail able to Head of Regental/Municipal Service in their respective working areas. (2)Based on the LP-HHBK proposal as meant in para graph (1), P2LP-HHBK shall promptly undertake in spection in accordance with the inspection procedures as regulated in Attachment III. (3)Based on results of the inspection as meant in para graph (2) and in the case of the results being suit able, the LP·HHBK proposal shall be ratified P2LP HHBK. {4)In the case of non-timber fotest products being nee· essary to carry promptly, LP·HHBK can be ratified first by following the ratification procedures as meant in paragraphs (2)' and (3). (S)LP-HHBK shall be made in 6 (six) copies with the designation as follows: a. 1st sheet to KKPH/administrator; b. 2nd sheet to Forest Planning Section; c. 3rd sheet to Administrator Adjutant d. 4th sheet to Planning Assistant; e. 5th sheet to KRPH; f. 6th sheet to P2LP-HHBK. (6) Based ..... (6)Based on LP-HHBK already ratified, KKPH/Adminis trator shall convey report on results of production to head of unit and regental/municipal forestry service. Paragraph Seven Appointment of Officers Formulating LHP-KB, LP-Brongkol Wood Article 16 (!)Every KPH shall have officer formulating LHP-KB/LP Brongkol Wood/LP-Fire Wood/LP-HHBK. (2)The officer formulating LHP as meant in paragraph (1) shall be forest product measuring and verifying personnel. (3) Before the relevant is appointed as formulator of LHP or LP-Brongkol Wood/LP-Fire Wood, KKPH/adminis trator shall convey names to heads of regental/mu nicipal service by enclosing: a. copy of certificate as Forest Product Verifier (PHH) and Forest Porduct Verifier card in accordance with forest-product commodities, which remain valid from Head of BSPHH on behalf of the Direc tor General; b. Location of assignment and specimen of signa ture; and subsequently passed by Heads of Re gental/Municipal Service to Heads of Provincial Service for getting appointed as formulator of LHP. ( 4) Decision on appointment of formulator of LHP-KB, LP-Brongkol Wood/Fire Wood and LP-HHBK shall be accompanied by the granting of registry no. of the respective officers and conveyed to administrator/ KKPH with a copy made available to Heads of Re gental/Municipal Service and Head of BSPHH. (S)The decision on appointment of formulator of LHP shall be valid for one year of felling plan and extend able. Business News 7261/16-9-2005 32A Part Five Transport of Forest Product Paragraph One General Article 17 (l)The transport of forest products in the form of: a. logs from TPK/TPn to other places; b. processed wood from Perhutani's primary indus tries or processing cooperation partners (KSP to other place; c. HHBK from collection place to other place; d. Processed HHBK from Pethutani's primary indus tries or KSP Shall be accompanied by document of SKSHH. (2)The document of SKSHH as meant in paragraph (1) shall be issued by P2SKSHH. (3)As the basis for the issuance of transport document, auction winners, contract holders and holders of un der-hand sales shall submit application by using form as contained in specimen in Attachment VII to P2SKSHH for the planned forest products, which will be carried by enclosing DHH. (4)Based on the application as meant in paragraph (3), P2SKSHH shall examine the physical truth of forest products to be carried in accordance with the proce dures regulated in Attachment III. Article 18 The issuance of document of SKSHH to forest products coming from working areas of Perhutani out side TPK/TPn/Collection Places/Industrial TPK belong ing to Perhutani shal be done by P2SKSHH of local re gental/municipal/provincial service. PARAGRAPH TWO ..... ( TO BE CONTINUED ) ===(R)==~ 18A ADMINISTRATION OF FOREST PRODUCTS COMING FROM WORKING AREAS OF PERHUTANI FOR PROVINCES IN JAVA (Decree of the Minister of Forestry No. 127/Kpts-II/2003 dated April 3, 2003) [ Continued from Business News No. 7261 pages 24A - 32A J Paragraph Two Procedures for Formulating and Completing Forest Product List (DHH) Article 19 (!)The issuance of OHH shall be regulated as follows: a. every forest product to be carried from TPK/TPn/ Industries shall be made OHH by using form of model DK.PHT.07/DK.PHT.08/DK.PHT.09 (Attach ment I.E.1, 2, 3). b. DHH shal\ be made by auction winners, contract holders and subsequently used as the basis for application for issuance of SKSHH as meant in Article 17 paragraph (3); c. DHH shall be made in six copies with the desig nation according to document of SKSHH. (2) Toe completion of DHH as meant in paragraph (1) by serial no., kind of processing/sorting, quantity of piece/string/sheet/bundle and volume as well as information by mentioning other explanation if necessary. f. In the case of HHBK, to be completed by serial number, kind of HHBK, quantity of bundle, vol ume/weight in accordance with what is mentioned in LP·HHBK as well as information by mentioning other explanations if necessary. Paragraph Three Procedures for Issuance of Certificate of Legitimacy of Forest Product {SKSHH) Article 20 ( l)The completion of form of SKSHH shall be based on recapitulation of DHH. shall be done by typewriter and stipulated as fol- (2)SKSHH shall be completed by typewriter. lows: a. in the case of numbered KB, the completion of no. of stalk, kind of wood, size, length, diameter and volume is the same as that contained in LHP KB as well as mention no. and date of LHP·KB; b. In the case of not-numbered logs, the comple tion of kind of wood, size, length, diameter and volume is the same as that contained in LHP-KB as well as mention no. and date of LHP-KB; c. In the case of the numbering as meant in letter a and any of stalks being cut into two parts or over, the numbering in cuts of logs and completion of DHH must be the same as no. of stalk in LHP-KB by supplementing letters a, b and so on, and the numbering as well as marketing in the physic of cut woods must be in accordance with the change. d. In the case of brongkol wood and fire wood, to be completed by serial no., kind of sort, quantity of unit/string and staple meter as well as infor mation by mentioning other explanation if neces sary. e. In the case of processed wood, to be· completed Business News 7267/30-9-2005 (3)Procedures for completing form of SKSHH shall fol low the procedures as regulated in Attachment IV. Article 21 (!)Before SKSHH is issued, all forest products to be carried from TPK/TPn shall have their PSDH settled first. (2)Procedures for imposition, collection and payment and remittance of PSDH shall be in accordance with legislation in force. Paragraph Four Validity Period of SKSHH Article 22 (!)The validity period of SKSHH shall be set for 15 (fif teen) days at the maximum. (2)The validity period of SKSHH as meant in paragraph ( 1) shall be stipulated by a decision of head of local provincial service. (3) Toe ..... (3)The calculation of the validity period of the docu ment as meant in paragraph (2) shall based on the normal travel time with transport distance and ob serving kind of transport facility. ( 4) The designation of document of SKSHH shall be regu lated as follows: a. First and second sheets b. Third sheet c. Fourth sheet d. Fifth sheet e. Sixth sheet : to complete forest products which are carried; : Head of BSPHH overseeing forest of origin; : Head of Provincial Service overseeing the transport des tination; : file of P2SKSHH; : Regental/Municipal service CHAPTER III ADMINISTRATION IN PRIMARY FOREST-PRODUCT INDUSTRY Part One Treatment of SKSHH in Primary Timber-Forest Product Industry Article 23 SKSHH received in TPK of industries belonging to Perhutani shall be treated with the provision as foi lows: a. the first and second sheets of SKSHH must be re ported in not later than one working day to P3KB/ P3KG to be liquidated promptly by putting seal "AL READY LIQUIDATED" on the front page of document before administrative and physical examination is applied to the carried forest products. b. Administrative examination includes: 1) the truth and legitimacy of the form which is used; 2) the truth of name and specimen of signature of P2SKSHH; 3) the truth of registry no. of P2SKSHH; 4) the truth of completion of form of SKSHH. c. forest products are examined physically in accordance with the procedures as regulated in Attachment III. d. After completing the administrative and physical ex Business News 7267 /30-9-2005 19A amination, P3KB/P3KG makes account of examina tion by using Form DK PHT.14 a (Attachment I.H.1)/ DK PHT.14b (Attachment I.H.2) and promptly signs the first and second sheets of SKSHH in the available column. e. P3KB/P3KG is obliged to make a registry book of re ceipt of the first sheet of SKSHH and subsequently inserts every month data about the said SKSHH into the List of Receipt of the First Sheet of SKSHH iP Destination Place by using form of model DK.PHT.20 (Attachment I.J.3). f. The second sheet of SKSHH and attachments are subsequently returned by P3KG/P3KB and become file of the said industry. g. Collection of the first ( original) sheets of SKSHH and the list as meant in letter e as well as the account as meant in point d must be sent every month to Heads of Regental/Municipal Service for conveying to Heads of Provincial Service. Part Two Treatment of SKSHH in Primary HHBK Industry Article 2</ SKSHH received in TPK of HHBK industries be longing to Perhutani shall be treated with the provision as follows: a. the first and second sheets of SKSHH must be re· ported in not later than one working day to P3HHBK to be liquidated promptly by putting seal "ALREADY LIQUIDATED" on the front page of document before administrative and physical examination is applied to the carried forest products. b. Administrative examination includes: a. the truth and legitimacy of the form which is used; b. the truth of name and specimen of signature of P2SKSHH; c. the truth of registry no. of P2SKSHH; d. the truth of completion of form of SKSHH. c. forest products are examined physically in accordance with the procedures as regulated in Attachment III. d. alter .... ,. d. After completing the administrative and physical ex amination, P3HHBK makes account of examination by using Form DK PHT.16 a (Attachment l.H.5 and promptly signs the first and second sheets of SKSHH in the available column. e. P3HHBK is obliged to make a registry book of receipt of the first sheet of SKSHH and subsequently inserts every month data about the said SKSHH into the List of Receipt of the First Sheet of SKSHH in Destination Place by using form of model DK.PHT.20 ( Attachment I.J.3). f. The second sheet of SKSHH and attachments are subsequently returned by P3HHBK and become file of the said industry. g. Collection of the first (original) sheets of SKSHH and the list as meant in letter e as well as the account as meant in point d must be sent every month to Heads of Regental/Municipal SeNice for conveying to Heads of Provincial SeNice. Part Three Mutation of Forest Products Paragraph One Formulation of Report on Mutation of Logs (LMKB), Report on Mutation of Brongkol Wood (LM-Bronkol Wood) and Report on Mutation of Fire Wood (LM-Fire Wood) in TPK/TPn Article 25 20A · ( 1) Numbered wood, not numbered wood, brongkol wood and fire wood shall be reported in LMKB/LM-Brongkol Wood/LM-Fire Wood made in TPK/TPn by using form of model DK.PHT.10 (Attachment l.F.1). {2)Procedures for completing LMKB shall be stipulated as follows: a. The completion of column of addition is based on recapitulation of LHP already legalized for every month. b. The completion of column of reduction is based on recapitulation of sold-out wood on the basis of the list of block and/or the issued SKSHH. c. Serial number and date of issuance of SKSHH as Business News 7267/30-9-2005 well as transport destination are mentioned in column of remarks. d. Based on the quantity of stocks In the addition section, which is subtracted by the quantity of sold-out wood, the remainder constitutes the re maining stock at the end of the said month. e. In the case of any change in the remaining stock because of lost/damage and others during the period, account acknowledged by P2LHP must be made. (3)LMKB/LM•Brongkol Wood/LM-Fire Wood shall be made in quadruple with the designation as follows: a. the first sheet to Head of Regental/Municipal Ser vice; b. the second sheet to KKPH/administrator; c. the third sheet to KB KPH; d. the fourth sheet to Head of TPK/TPn/Collection Place, {4)The first sheet of LMKB/LM·Brongkol Wood/LM-Flre Wood shall be set and received in not later than the 5th of the ensuing month. (S)LMKB/LM·Brongkol Wood/LM·Fire Wood as meant in paragraph ( 1) shall be in accordance with the physi cal kind, quantity and volume of wood. Paragraph Two Formulation of Report on Mutation of Non-Timber Forest Products in Collection Place Article 26 (l)Non-timber forest products shall be reported in Re port on Mutation of Non-Timber Forest Products (LM· HHBK) by using form of model DK.PHT.12 (Attach· ment I.F.3). {2)Procedures for CO!"pleting LM-HHBK shall be stipu lated in accordance with the provision in Article 25 paragraph (2). (3)LM-HHBK shall be made in quadruple with the desig nation as follows: a. the first sheet to Head of Regental/Municipal Ser vice; b. the second sheet to KKPH/administrator; c. the third sheet to KBKPH; d. the fourth sheet to file in COiiection Place. (4)The first sheet of LM-HHBK shall be set and received in not later than the 5th of the ensuing month. (S)LM-HHBK as meant in paragraph (1) shall be in ac cordance with the physical kind, quantity and vol ume of forest products. Paragraph Three Treatment of Timber Forest Products Coming from Sources Other Than Legal Production Article 27 ( 1} Timber forest products found in forest areas, not com ing from legal production of Perhutani shall be stipu lated as found wood. (2)The timber forest products as meant in paragraph (1) shall not be stipulated as additional production, either addition to stock in TPK/TPn and other col lection places thus they cannot be mentioned in LMKB. (3)The found wood as· meant in paragraph (1) shall be measured and the result shall be mentioned in ac count of finding result. 21A (4)The account of the found wood as meant in para graph (2) shall be reported to Heads of local Re gental/Municiap Service for processing in accordance with the provisions in force. Paragraph Four Formulation of LMKB and LMHHOK in Primary Timber-Forest Product Industry Article 28 (l)Personnel in charge of primary timber-forest prod uct industries belonging to Perhutani shall make LMKB and LMHHOK every month by using form of model DK.PHT.10 (Attachment I.F.l) and DK.PHT.11 (Attach ment I.F.2). (2)Procedures for formulating LMKB follow the provi Business News 7267/30-9-2005 sion in Article 25 and LMKB shall be made in qua druple with the designation as follows: a. the first sheet to Head of Regental/Municipal Ser vice; b. the second sheet to Provincial Service; c. the third sheet to P3KB/P3KG; and d. the fourth sheet to file of industry. (3)Procedures for completing LMHHOK shall be stipu lated as follows: a. Column of initial stock of raw materials is com pleted by kind of processed wood and unit of quantity and volume/weight of the respective pro cessed forest-products, which constitutes the fi nal stock in the previous month; b. Column of acquisition of raw materials is com pleted by acquisition of raw materials in accor dance with kinds of processed forest-products and unit of quantity and volume/weight of the respec tive products. c. Column of the Use of raw materials is completed by the use of raw materials in accordance with kinds of processed forest-products and unit of . qu~tity and volume/weight of the respective products. d, Column of final stock of raw materials is com pleted on the basis of result of calculation of ini tial stock plus acquisition of raw materials in the current month, subtracted by the use of raw ma terials. e. Column of initial stock of processed forest-prod ucts is completed by kinds of processing, unit and volume. f. Column of produetion of processed forest-prod ucts is completed by production of processed for est-products in the current month. g. Column of the use/sale of processed forest-prod ucts is completed on the basis of the use/sale of the processed forest products in the current month. h. COiumn of final stock of processed forest-prod ucts is completed on the basis of result of calcu lation of initial stock plus production of processed forest-products in the current month, subtracted by the use/sale. {4) LMHHOK ....• (4)LMHHOK shall be made in quadruple with the desig nation as follows: a. the first sheet to Head of Regental/Municipal Ser vice; b. the second sheet to Provincial Service; c. the third sheet to P3KB/P3KG; and d. the fourth sheet to file of industry. ( 5) Personnel in charge of the industry as meant in para graph ( 1) shall send the first and second sheets of LMKB and LMHHOK in not later than the 5th of the ensuing month. Paragraph Five Formulation of LMHHOBK in Primary Non-Timber Forest Product Industry Artide 29 (l)Personnel in charge of primary non-timber forest product industries belonging to Perhutani shall make LMHHOBK every month by using form of model DK.PHT.13 (Attachment I.FA). (2)Procedures for formulating LMHHOBK follow the pro vision in Article 28 paragraph (3) and LMKB shall be made in quadruple with the designation as follows: ' a. the first sheet to Head of Regental/Municipal Ser vice; b. the secoAd sheet to Provincial Service; C. the third sheet to P3KB/P3KG; and d. the fourth sheet to file of industry. CHAPTER IV APPOINTMENT AND RELIEF OF P2LHP, P2LP-HHBK, P2SKSHH AND P3KB/P3KG/P3HHBK Part One Main Task, Function and Responsibility Artide 30 (l)The main task of P2LHP or P2LP-HHBK shall be as follows: a. examining the truth of completion of LHP on Num ber Log, Not-Numbered Log, LP-Brongkol Wood, LP-Fire Wood and LP-HHBK. b. Examining physically forest products whose LHP or LP-HHBK has been formulated. c. Checking results of the felUng/harvesting/collec Business News 7267/30-9-2005 22A tion of forest products in the said location. d. Ratifying LHP or LP-HHBK. (2)P2LHP or P2LP-HHBK as meant in paragraph (l}shall function to control the felling/harvesting/collection of forest products in locations stipulated on the ba sis of legitimate license. (3)P2LHP and P2LP-HHBK shall be functionally respon sible to Head of Regental/Municipal Service. Article 31 (l)The main task of P2SKSHH shall be as follows: a. serving applications from licensees or individuals for the issuance of SKSHH in accordance with the provisions in force. b. Examining physically the requested forest prod ucts for transport; c. Making registry book of receipt, stock and issu ance of SKSHH. d. Making report on the issuance of SKSHH. (2)P2SKSHH shall function to control the distribution of for.est products so that the distributed forest prod ucts really come from legitimate license. (3)P2SKSHH shall be responsible to Head of Regental/ Municipal Service where the relevant is stationed. Article 32 (l)The main task of P3KB/P3KG/P3HHBK shall be as follows: a. Making registry book of receipt of forest prod ucts. b. Examining administratively the truth of content of document of SKSHH. c. Examining physically forest products, which are received or will be carried. ' d. Making account of examination in the case of re ceipt of forest products without transport docu ment being found and conveying report to the direct superior for taking security measures and processing in accordance with legislation in force. (2)P3KB/P3KG/P3HHBK shall function to control the distribution . . . . . distribution of forest products so that the forest prod ucts received directly in timber processing industries really come from legitimate license. (3)P3/KB/P3KG/P3HHBK shall be responsible to Head . of Regental/Municipal Service where the relevant is stationed. Part Two Requirements and Procedures for Appointment Article 33 (!)Requirements for the appointment as P2LHP, P2LP HHBK, P2SKSHH and P3KB/P3KG/P3HHBK shall be as follows: a. permanent employee of Perhutani; b. having a certificate of forest product verifier at the minimum and forest-product verifier card and in not later than one year following the appoint ment as P2LHP, P2LP-HHBK, P2SKSHH and P3KB/ P3KG/P3HHBK, the said employee is obliged to have certificate of Forest-Product Verifier Super visor; c. appointed as forest product verifier and having forest product verifier card in accordance with commodities of forest products still valid from Head of BSPHHI on behalf of the Director Gen eral. d. Having high dedication, good conduct, honest and responsible. (2)Head of BSPHH shall stipulate minimally once in one year a list of names of forest product verifiers and supervisors fulfilling the qualification and feasibility of performance used as the consideration for the ap pointment of officials/officers in forest product ad ministration. (3)Procedures for the appointment of P2LHP, P2LP HHBK, P2SKSHH and P3KB/P3KG/P3HHBK shall be as follows: a. The relevant KKPH/administrator nominates in writing names of employees to be assigned as P2LHP, P2LP-HHBK, P2SKSHH and P3KB/P3KG/ P3HHBK to Head of local provincial service by enclosing: Business News 7267 /30-9-2005 23A 1. Certificate of Forest Product Verifier and copy of the appointment as forest product verifier and forest-product verifier card still valid; 2. specimens of signatures of the respective em ployees to be nominated for the appointment; 3. list of names of forest product verifiers/veri fier supervisors as meant in paragraph (2). b. based on the nomination as meant in letter a, Head of Provincial Service Office stipulates a de cision on the appointment of P2LHP, P2LP-HHBK, P2SKSHH and P3KB/P3KG/P3HHBK, accompanied by the granting of registry no. to the respective officials/officers. (4)Copy of the decision as meant in paragraph (3) let ter b shall be conveyed to the Director General, while in the case of stipulation of P2SKSHH, copy of the decision is conveyed to Heads of Provincial Service throughout Indonesia by enclosing specimens of sig natures the appointed P2SKSHH. (S)After receiving copy of decision on the appointment of P2SKSHH, Regental/Municipal Service shall be obliged to convey it to Heads of Regental/Municipal Service in the said province. (6)After receiving the copy as meant in paragraph (SJ, regental/municipal service shall ·be obliged to pass on it to forestry officers assigned at seaports and timber processing industries. Part Three Procedures for Relieving P2LHP, P2LP-HHBK, P2SKSHH and P3KB/P3KG/P3HHBK Article 34 (2)P2LHP, P2LP-HHBK, P2SKSHH and P3KB/P3KG/ P3HHBK shall be dismissed because: a. the relevant stop working as employees of Perhutani because of resignation or dismissal; b. the relevant is removed to other place; or c. the relevant commits violation. (3)The relief from P2LHP, P2LP-HHBK, P2SKSHH and P3KB/P3KG/P3HHBK as meant in paragraph (1) let ters a and b shall be done by Head of Provincial Service ..... Service on the basis of recommendation of the KKPH/ administrator by enclosing: a. copy of decision on relief from employee of Perhutani; or 24A b. copy of decision on transfer to other place. ( 4 )Based on the recommendation as meant in paragraph (2), Head of Provincial Service shall stipulate deci sion on the relief of the relevant P2LHP, P2LP-HHBK, P2SKSHH and P3KB/P3KG/P3HHBK with a copy made . available to the Director General, Heads of Provin cial Service throughout Indonesia and Head of Local BSPHH. (5)Based on copy of the decision on the relief of P2LHP, P2LP-HHBK, P2SKSHH and P3KB/P3KG/P3HHBK as meant in paragraph (3), Head of BSPHH on behalf of the Director General shall issue a decision on relief from forest product verifier and revocation of forest product verifier card. Article 35 {l)The dismissal from P2LHP, P2SKSHH or P3KB/P3KG/ P3HHBK because the relevant commits the violation as meant in Article 34 paragraph (1) letter c shall be attributable to the following matters: a. P2LHP or P2LP-HHBK ratifies fictitious LHP or LP on forest products; or ratifies LHP or LP not suit able to the physical condition of the forest prod ucts; ratifies LHP without undertaking physical examination in accordance with the provisions in force o manipulates results of administrative and/ or physical examination or does not make/fill the registry book. b. P2SKSHH does not undertake physical examina tion In accordance with the provisions in force; or issues document of next SKSHH; or issue SKSHH in an empty condition; or completes the first and second sheets differently from the third sheet and so on; or issue SKSHH of forest products whose PSDH or DR is allegedly not paid yet or makes SKSHH disappearing intentionally or unintention ally. c. P3KB/P3KG/P3HHBK liquidates document of SKSHH without examining physically forest prod Business News 7267 /30-9-2005 ucts; passes on receipt of forest products without document; or does not make the registry book; or make the first and second sheets of the origi nal SKSHH disappearing. (2)Especially for violation not making/filling the registry book, P2LHP, P2LP-HHBK, P2SKSHH or P3KB/P3KG/ P3HHBK shall be reminded once before the sanction of dismissal as meant in paragraph (1) is imposed. (3)If P2LHP, P2LP-HHBK, P2SKSHl'I and P3KB/P3KG/ P3HHBK already given the warning as meant in para graph (2) shall continue committing the same viola tion, Head of Provincial Service issues a decision on the dismissal of the relevant employee as P2LHP, P2LP-HHBK, P2SKSHH or P3KB/P3KG/P3HHBK with a copy made available to Head of Regental/Munici pal Service and Head of BSPHH. ( 4) Based on the copy of decision on dismissal from P2LHP, P2LP-HHBK, P2SKSHH or P3KB/P3KG/P3HHBK as meant in paragraph (3), Head of BSPHH on be half of the Director General shall issue a decision on the relief from forest product verifier and revocation of forest product verifier card. (5)Besides the sanction of dismissal from as P2LHP, P2LP-HHBK, P2SKSHH or P3KB/P3KG/P3HHBK, vio lation committed by the said P2.LHP, P2LP-HHBK, P2SKSHH or P3KB/P3KG/P3HHBK shall also be sub ject to disciplinary sanction in accordance with the legislation in force. CHAPTERV STANDARDIZATION OF FORMS, ENCODING AND LEGALITY MARK Part One Model and Kind of Form Article 36 (!)Models of administration of Perhutani's forest prod ucts in Java shall consist of two kinds, namely Model DK.PHT and DK.B. (2)Model of Form DK.PHT shall be a form stipulated by the Ministry and printed/made by Perhutani, com posed of: a. Recapitulation ..... 25A a. Recapitulation of Reports on Cruising Results (RLHC); b. Measuring Book; c. List of Transport and List of Transit Transport; d. List of Forest Product Examination and Measur ing (DPPHH); e. List of Results of Felling/Harvesting of Logs (LHP KB); f. Report on Production of Non-Timber Forest Prod ucts (LP-HHBK); g. Report on Forest Products (LHH); h. Report on Mutation of Logs (LMKB); i. Report on Mutation of Processed Timber-Forest Products (LMHHOK); j. Report on Mutation of Processed Non-Timber-For est Products {LMHH08K); k. Forms of Account of Examination (BAP). (3)The model of Form DK.B shall be the form stipulated and printed by the Forestry Ministry, namely form of document of SKSHH. (4)If necessary, the forms as meant in paragraphs (2) and (3) can be changed in accordance developments of condition. (S)Any change in the forms as meant in paragraph ( 4) shall be done by the Director General. Article 37 Especially for forms outside the forms as meant in Article 36 used for Internal activities of Perhutanl, the Executive Director of Perhutani shall stipulate and regu late. Part Two Encoding Article 38 (l)Standardization of codes of provinces, regencies/cit ies shall be as contained in Attachment VIII. (2)In the case of division of a region, either province, regency/city, codes of next provinces, regencies/cit ies shall use codes by following codes of the latest provinces, regencies/cities and so on as contained in Attachment VIII. Business News 7267/3~·2005 (3)Model, size and encoding of DK Marking Hammer shall be stipulated as follows: a. a circle model with a diameter of 5 (five) cm; b. the circle as meant in letter a is divided into 3 (thret!) parts with the size: 1) upper and bottom parts, respectively 1.75 cm; 2) central part, 1.5 cm; 3) first (upper) part constitutes code of province; 4) second (central part) constitutes code of re gency/ city; 5) third part constitutes code of serial number of DK Marking Hammer concurrently Corporate Identity Number. c. Dk Marking Hammer is made of good-quality steel/iron; d. Specimen of model of DK Marker is as contained in specimen in Attachment V. CHAPTER VI PLANNING, DISTRIBUTION AND ADMINISTRATION OF FORM OF SKSHH DOCUMENT Part One Plan and Distribution of Form of SKSHH Document Article 39 (l)Heads of Perhutani's Units shall make the plan for the need of forms of SKSHH document in one year, based on consideration about the production tar get of forest products and frequency of transport on the basis of kinds of transport facility, which is used. (2)The plan as meant in paragraph (1) shall be con veyed to Heads of Provincial Service in not later than early November of the current year. (3)After receiving applications, Provincial Service shall promptly evaluate the need for form of SKSHH per 3 (three) months and subsequently distribute them to Heads of Units. ( 4) Delivery of every form of SKSHH document from Pro vincial Service to Heads of Units shall be subjected to examination by means of hundred-percent cen sus and account of transfer of form is subsequently made. (Sl!n ..... (S)In the case of form of SKSHH document damaging or containing shortage or misprint, account of nullifi cation shall be made and the event shall be subse quently reported soon to the Director General for the need of elimination process. (6)The next distribution from Provincial Service to Heads of Units shall be done after Units of Perhutani hold accountability for the use of form of SKSHH per set to Provincial Service minimally 80% of the total forms of SKSHH received previously. (?)Units of Perhutani can distribute forms of SKSHH document to KPH in accordance with the need on the basis of the planning for one month. (B)The next distribution from Units of Perhutani to KPH shall be done after KKPH/ Administrators hold ac countability for the use of form of SKSHH per set to Heads of Perhutani's Units minimally 90% of the to tal forms of SKSHH received previously. (9)Accountability for the use of forms of SKSHH docu ment shall be done hierarchically, starting from P2SKSHH to KKPH/ Administrator and from KKPH/ Administrator to Head of Provincial Service. 26A (l0)In the case of accountability for the remaining forms of SKSHH document coming from the previous re ceipt being not held yet, the forms shall be reported in the following-month accountability and in the event that they cannot be held for accountability in the following month, Head of Provincial Service shall examine the said P2SKSHH. (ll)In the case of forms of SKSHH document contain ing damage or misprint/mistyping/mis-completion during the issuance, the account of nullification as meant in paragraph (5) shall be made by enclos ing the said forms for conveying to Provincial Ser vice. Part Two Administration, Storage and Elimination of Form of SKSHH Document Business News 7267/30-9-2005 Article 40 (l)Heads of Units shall stipulate personnel managing forms of SKSHH and procedures for administration. (2)Storage and security for forms of SKSHH document shall be stipulated as follows: a. forms of SKSHH document in Units of Perhutani, KPH, BKPH and P2SKSHH shall be saved in a place safe from theft, damage because of humidity, in sect, fungus and fire. b. Officers keeping forms of SKSHH document shall make a list containing the quantity of receipt, quantity of delivery/use and quantity of stock. (3)Procedures for nullification of damaging or mis-com pleted forms of SKSHH documents shall be stipu lated as follows: a. Personnel managing forms makes account of forms of SKSHH document facing damage during the dispatch, storage resulting from fungus, mis print and others and the account must be acknowl edged by Head of Provincial Service. The damag ing forms are given seal "INVALID" in the upper right side of the first and second sheet by the personnel managing the forms. b. P2SKSHH is obliged to make account of nullifica tion in the case of P2SKSHH completing forms of SKSHH document incorrectly and the SKSHH docu ment is liquidated by putting seal "INVALID" on the upper right side of the first and second sheets. c. The account of nullification as meant in letters a and b is formulated by using specimen of form in Attachment VI.a. d. The account of nullification of forms of SKSHH document arising from mis-completion must be recorded in a registry book by P2SKSHH, reported and given up to personnel managing forms every week. e. Forms of SKSHH document damaging and having account of nullification already made must be re corded in a registry book by personnel managing forms and reported and delivered at the begin ning of every month or in not later than the 5th to Head of Provincial Service as the basis of elimi nation for destruction. (4). ' ... {4)Nullification of forms of SKSHH document, Which is lost, shall be regulated as follows: a. in the case of the forms being lost upon the dis· patch or storage attributable to theft or getting scattered, personnel managing the forms is obliged to report the case to KKPH/ Administrator and subsequently repo~ to the Police for mak• ing account. . b. Based on the report and account of lost from the Police, the forms are reported to Head of Provin· cial Service for nullification. c. In a period of 2 x 24 hours after receiving the lost report, Head of Provincial Service promptly issues a decision on nullification of the forms of the said SKSHH document and forms of SKSHH document are conveyed to Heads of Provincial Service throughout Indonesia with a copy made available to the Director General. d. In the case of the forms as meant in letter a be· ing found later, the forms must be given up the Police for interests of verification and further in· vestigation/inquiry. • e. After the forms are returned by the Police be· cause the case has been decided and on the ba· sis of a court decision, the forms are confiscated for the state as well as the forms are not needed anymore, they are promptly sent to Provincial Ser· vice for destruction. (S)Elimination of forms of SKSHH document shall be regulated as follows: a. all forms of SKSHH document having their usage already nullified must be erased every quarter. b. Eradication of every form of SKSHH document must be reported to the Director General for se· curing approval of eradication for destruction. c. The eradication as meant in letter is executed by a Eradication Team established by Head of Pro• vincial Service with the members minimally con• sisting of a representative of the Provincial Ser· vice and a representative of Poliee. d. Account of eradication of document must be made for the eradication of every form by using form in accordance with Attachment VI.b and the eradi· cation must be recorded in a registry book by per• Business News 7267 /30·9· 2005 27A sonnel managing the forms and Head of Provin· cial Service is obliged to report the result to the Director General. CHAPTER VII REPORTING Artiele 41 (l)P2SKSHH shall report the quantity of receipt, issu· ance and stock of forms of SKSHH document at the end of every month by using form of model DK.PHT.18 (Attachment J.J.1) and List of Issuance of SKSHH by using form of model DK.PHT.19 ( attachment l.J .2) to KKPH/Administrator. (2)P3KB/P3KG/P3HHBK shall report Recapitulation of Examination of Forest Products (RPHH) every month by using form of model DK.PHT.17 (attachment I) to KKPH/ Administrator. (3)KKPH/Administrator shall convey report on the plan and realization of the felling/harvesting as well as distribution of forest products every 5th of the ensu• ing month to Head of Unit with a copy made avail· able to Head of Regental/Municipal Service. (4)Units of Perhutani shall convey report on the plan and realization of the felling/harvesting as well as distribution of forest products every 10th of the en· suing month to Head of Provincial Service with a copy made available to the Director General. (S)At the end of every book year, the Executive Director of Perhutani shall convey the plan and realization of the felling/harvesting as well as distribution of forest products in the said year to the Minister of Forestry with a copy made available to the Director General. CHAPTER VIII FOSTERING AND CONTROLLING Article 42 (l)The Directorate General shall foster and supervise the realization of administration of forest products., including audit of forms of SKSHH document. (2)Provincial Service shall foster, supervise and control the ..... the realization of administration of forest products in working areas of Perhutani. (3)Regental/Municipal Service shall foster, supervise and control the realization of administration of forest prod ucts in KPH. (4)BSPHH shall counsel, supervise and monitor techni cally activities related to their scopes of tasks. CHAPTER IX EXAMINATION Article 43 (l)In order to ascertain the truth of reports on produc tion, transportation and stock of forest products, Pro vincial Service can examine the realization of pro duction, transportation and stock of forest products reported by heads of units of Perhutani. (2)In order to ascertain the truth of reports on receipt, processing, production, marketing/sale/transporta tion and stock of forest products in TPK/TPn/IPKJ, provincial service shall undertake stock surgery in cooperation with the relevant regental/municipal service. (3) The stock surgery as meant in paragraph (2) shall be executed at the end of every year or at any time if necessary or at the end of validity period of the legitimate license. Article 44 ( 1) Officers of the Ministry or Provincial Service shall be authorized to examine and test the realization of ad ministration of forest products. (2) Based on the result of the examination and test as meant in paragraph (1), next audit.can be executed by means of truth audit or post audit. (3)Procedures for executing the truth audit or post au dit shall be further stipulated by the Director Gen eral. C.HAPTERX TRANSmONAL PROVISION Article 4S (l)Service for documents of SKSHH by Provincial Ser Business News 7267 /30-9-2005 vice or Regental Service shall remain effective as long . as personnel of P2SKSHH of Perhutani is not avail able. (2)TPn/TPK/Transit TPK/Industrial TPK belonging to Perhutani already stipulated on the basis of regula tions effective before the enforcement of this decree shall be deemed already stipulated as TPn/TPK/Tran sit TPK/Industrial TPK on the basis of this decree. (3)Starting from 12 (twelve) months as from the date of enforcement of this decree, all P2LHP, P2LP-HHBK, P2SKSHH and P3KB/P3KG/P3HHBK shall have the minimum qualification as Forest Product Verifier. (4)The adjustment to forms of administration as regu lated in this decree shall be provided until deadline not later than June 30,2003. (S)The use of DK Marking Hammer shall come into force as from July 1,2003. CHAPTER XI CONCWSION Article 46 Further provision on technical provisions related to production/felling/havesting of forest products not regulated in this decree shall be regulated by a decision of the Executive Director of Perhutani. Article 47 With the enforcement of this decree, other pro visions contravening this decree shall be declared null and void. Article 48 The decree shall come into force as from the date of stipulation. Stipulated in Jakarta On April 4,2003 THE MINISTER OF FORESTRY Sgd MUHAMMAD PRAKOSA ===(R)===