Government Regulation No. 3/2008 on the amendment to Government Regulation No. 6/2007 on forest arrangement and formulation of forest management plan as well as forest exploitation

lOA THE AMENDMENTTO GOVERNMENT REGUIJ\TION NO 6/2007 ON FOREST ARRANGEMENT AND FORMULATION OFFOREST MANAGEMENT PLAN AS WELL AS FOREST EXPLOITATION (GOVernment Regulation No.3 Year 2008 dated February 4, 2006) BY GRACE OFTH~AlMIGHTY GOD TH~ PRESIDENTOFTH~ REPUBUC OF INDONESIA, Considering: a. that in order toenhance effectiveness of forest man agement, it isnecessary to amet1ded provisions in ragu lation of lorestarrangement and lormulation 0I1orest management plan aswell asforest exploitation; b. thatbased ontheconsideration asmeant in letter a, it Is necessary to stipulate a government regulation on theamendment toGovernment Regulation No. 6/2007 regarding forest arrangement and formulation I)ffor est management plan as well as forest exploitation; BusinessN~ 767&-7677/6-1B-2008 In viewof: 1. Artide 5 paragraph (2) olthe Constitution 01 1945 (BN No.7152 pages 14A- 23A); 2. Law No.41/1999 (BNNo. 64J2 estA-6Aand so on) on ForestJy Affairs (Statute Book01 the Re public of Indonesia Year 1!)!J9No. 167, Supplement to Statute Book of the Republic of Indonesia No. 3888)as alreadyamended by Law No.19/2004 (BN No. 7143pages 26A-29A) regarding Stipulation ofGovernment Regulation In Lieu of Law No. 1/201)4 (BN ND. 7036 pages 9A~10A) concerning the Amendment to LawNo.41/1999 onForestry Affairs to ... " llA to Become A Law(Statute Bookof the Republic of In donesla Year 2004 No. 86, Sllrr'llpmpnt to Stature Rook ofthe Republic of Indonesia No. 4412); 3. Government Regulation No. 6/2007 (BN No. 7529 pages.tA-2.tAtmd$Oon}regording forest errenge ment and formulation of forest management plan as wellas forestexploitationStatuteBook otthe Republic of IndonesiaYear2007No.22, Supplement to Statute Book oftheRepublic of Indonesia No. 3695); DECIDES: To stipulate: THEGOVERNMENTREGULATIONONTHEAMENDMENTTO GOVERNMENT REGULATION NO6/2007 ONFOREST AR RANGEMENT ANDFORMULATION OFFOREST MANAGE MENTPLAN ASWELLASFOR.EST EXPLOITATION Artlcle I severalprovisions in Government Regulation No. 6/2007 regarding forest arrangementand formulationof forest management plan aswellasforestexploitation Stat ute Book of the Republic of Indonesia Year2007No. 22, Supplement toStatute Book of the Republic of Indonesia No. 3695) shall be amended asfollows: 1. The provision of Article 6 is supplemented by a new paragraph, namelyparagraph (3) so that Article6 en tirelyreads asfollows: Article6 (1) KPH asmeant inArtlcle 5shall be stipulated inone or more forest mainfunctionsandoneadministra tiVe territory or inter-administrative territoryof public administlation. (2) In the case of oneKPH consisting of more than one mainfunction afforest, KPH asmeantin paragraph (I) shall be stipulated onthe basis of the function having the dominantclze. Business News 7676-7677/6-18-2008 (3) Provisions on procedures for stipulating KPH as meant in paragraphs (1) and (2) shall be regulated in accordance with the provisions of legislation. 2. Provisions of paragraphs (1), (2) and (3) of Article 7 are amended anda new paragraph issupplemented to become paragraph (4) so that Article7 entirely reads Cl~ rulluw:>. Article 7 (I) TheMinister shallstipulate the size of KPH territory byobserving efficiencyand effectiveness afforest management. (2) Thesize of KPH territory asmeant in paragraph (1) shall be stipulated inforest area following thephase of appointment, borderarrangement or stipulation of forest area. (3) Thesize of the stipulated KPH territory as meant in paragraph (1) may be reviewed in the CLl~ of ahv change in layoutpolicy andjorthe need forenhanc ingefficiencyand effectiveness offorest manage ment. (4) Furtherprovision on procedures for stipulating the szeof KPH territory asmeant inparagraph (1)shall be governedtly a regulatlOn ot tne MinISter. 3. Provisions of paragraphs (1), (2), (3)and (6)of Artlcle 8 areamended and provisions of paragraphs (4) and (5) are abolished so that Article 8 entirely reads as follows: Article8 (1) The Minister shall stipulate organ~ations of KPHK, KPHLand KPHP. (2) Theorganizationsof KPHland KPHP as meant in p.<Irngraph (1) shall be qjpulatM on thp Mc;ic; of~ a. recommendation of provincialgovernment, in the case of KPHP or KPHL being located in inter regcnCflcityj b. rerommendation .... 12A b. recommendation of regental/municipal govern ment, in the case of KPHP orKPHL being located in regency/city; c. technical consideration of provincial government. (3) The technical consideration and recommendation about stipulation of the organization of KPH as meant in paragraphs (1) and(2) shallbe based on norms, standards, procedures and criteria stipu latedbythe Minister. (4) Abol~hed (Ii) Abnli..bed (6) Further provision onstipulation ofthe organizations, technical consideration and recommendation about c;ti["llllrltinn nf nl'!]::.ni7<'ltinn of I<PI-l as: meant in para graphs (2) and (3) shall be governed bya regula· non of the Minister, 4. Provisions of paragraph (1) of Article23 isamended so that Article 13 entirely readsas follows: Article 13 (1) Based on result of the activityasmeant in Article 12 paragraph (2), forest manacement plant shall beformulated by: a. referring to national, provindal, regental/mu~ nidpal forestry plan: and b. observing aspirations, cultural values of local communities as well as environmental condi tion. (2) The forest management plan as meant in para graph (1) snail cover: a. lona-termfnrec;t mnnnopmpnt pl::.n; <'Inri b. short-termforest managementplan. (3) The long-term forest managementplanas meant in paragraph (2) letter a shall be formulaffi'l hy headofKPH. (4) Thelongtenm forest management plan asmeant in paragraph 93) shall contaln thp fnllnwinO euh stances: a. objectiveto be accomplished by KPH; b. encountering condition; and Business Ne"iS 7676·7677/6·18·2008 c. strategy aswell asfeasibilityof forest manaqe ment development, covering forest arranqe ment, forest area utilization and exploitation, forest rehabilitationand redamationand forest protection and nature conservation. (~) Theshort-term forest managementplanasmeant in paragraph (2) letter b shall be fonmulated by official appcinted by head of KPH. (b) The snon-rerm roresr managementplanas meant in paragraph (5) shall contain the following sub stances: a. objectiveof susramaue forest managementIn the scale of the saidKPHj b. evaluation of result of the previousshort-term plan; c. target to beacromplished; d. database and information; e. en:.tivitit:=:, Labe t:.llecul.edi f. status of balanceof forest resources; g. monitoring,evaluationandcontrolling of actlvl U~;dllli h. participation of parties. (7) The short-term forest management plan shall be formulated 011 HIt' Vasi.5 of long-term forest man agement. J. Provi~iulluf ~dldyrd~ll(1) or Article 141SamenOed so that Article 14entirely readsas follows: Article 1.... (1) Theminister or appointedofficial shafllegalize the long-term forest managementplanfurmulated by head of I(Plles rneeut in A1Ude 13 IJdldYrd~11 (3). (2) TheHeadof I9'H shall legalize the short-term for· est management plan formulated by official ap pointed by the head of KP! [ es meent in Artide 13 paraqraph (5). 6. ProviE;jo~ of poragrnphs (3) and (1) of Artide 25 lire amended and a new paragraph is supplemented be tween pareqraphs (3) and (4) to become paJ<lgraph (3a) so that Article 25 Qntirely reads es follow::;: Artir!e25 ..... Artide 25 (1) The utilization of environmental services inthepro tected forest as meant in Article 23 paragraph (1) letter b shall be done through the following busi nessactivities: a. utilizationof water bank; b. utilization of water; c. eco tourism; d. protectionof biological diversity; e. environmental rescueand protection; or f. absorption and/orstorageofcarbon. (2) Business activity of environmental service utiliza tion in protected forest shall be executedwith the provision that the activity: a. does notreduce, change oreliminate the main functlcn thereof; b. does notchange landscape; and c. doesnot destroy equilibrium of environmental substances. (3) Licensees in undertaking business activities of wa ter bank and waterutilization in the protected for estshall paycostinaccordance withthe provisions of legislation. (3a) license to utilize water bank and licenseto utilize water in protected forest maynot be leased or trans ferred partly or wholly. (4) Furtherprovision on business activity ofthe utiliza tion of environmentalservices in the protectedfor est as meant in paragraphs (1) and (2) shall be governedby-a regulationof the Minister. 7. Provision of paragraph (2) letter a of Article 26 is amendedso that Article 26 entirely reads asfollows: Article 26 (t) Collection ofnon-timber forestproducts inprotected forest asmeant in Article 23 paragraph (1) letter c shall be in the form of, among others: a. rattan; b. honey; c. resin; d. fruit; Business News7676-7677/6-18-2008 13A e. mushroom; or f. swallow nest (2) Collection of non-timber forest products in the pro tected forest shall be done with the provision that: a. the non-timber forest products result from re forestation and/or are availablenaturally; b. the activity does not destroy the environment; and c. the activity does not reduce, changeor ellml nate the main function thereof. (3) Collection of non-timberforestproducts inprotected forestonlycanbe donebycommunities living around the forest. (4) In the protectedforest, anybodyShall beprohibited from: a. collecting non-timber forest products with the quantity exceedingthe sustainable productivity thereof; b. collecting several kindsof forest products pro tected by the law. (5) Further provision on the collection of non-timber forest products in the protectedforest asmeant in paragraphs (2), (3) and(4) shall begoverned bya requlatlonof the Minister. 8. Provisions of paragraph (1) letters a and b of Article 29 are amended so that Article 29 entirely reads as fol lows: Article 29 (1) The periodofIUPJL intheprotected forestasmeant in Article23 paragraph (1) letter b shallbe granted in accordance with business activitythereot, namely business license: a. to utilize river bank, maximally 10 (ten) years; b. to utilize water, maXimally10 (ten) years; c. to organize eco tourism, rnaximalty 35 (thirty five) years with maximum size accounting for lU% (ten percent) anne Size orUDllZaDon blOCk; d. to protect biological diversity, maximally 50 (fifty) yearswith the sizeaccording the needof Investment; e. to ..... e. to rescue and protect the environment, the pe riodand size according to the need; and f. to absorb and/or store carbon, maximally 30 (thirty) years with the size according to the need of invesbnent. (2) IUPJL in the protected forestasmeantin paragraph (I) lettera upto letter f may be extended on the basis of evaluation executed periodicallv everyyear by licensor. 9. Provisions of paragraphs (2), (3) and(4) of Article 33 are amended andanewparagraph issupplemented to become paragraph (3a) between pereqrephs (3) and (4) sothat Article33 entirely readsas follows: Article33 (1) The utilization of environmental service in the pro ductionforestasmeant inArticle31 paragraph (2) letter bshall be donethrough,amongothers, busi nessactivitiesof: a. utilization of water bank; b. utilization of water; c. ecotourism; fl. protection of biolooical diversity; e. environmental rescue and protection;or f. absorption and/or storageof carbon. (2) The business activities of environmental service utilization in the production forestshall bedonewith the provision that the activities: a. do not reduce, chdllye Of eliminate the meln function thereof; b. do not change landscape; and c. do notdestroyequilibrium of environmental sub stances. (3) Ucensees in undertaking business activitiesof wa ter bankandwater utilization in the production for estshallpay costin accordance with the provisions of leo~lation. BusinessN 7676-7677/6-18-2008 14A (3a) The license to utilizewater bankand water in the production forest may not be leased or transferred partly or wholly. (4) Furtherprovision on business actiVity of the utillza tton of environmental services in the production forest asmeant in paragraphs (1) and (2) shall be governedby a regulationof the Minister. IO.Provision of paragraph (1) letter c of Article 36 is amended and provisionof letter b isabolished so that Article 36 entirely readsas follow<;~ Article 36 (1) Utilizationof timber forest: productsresultingfrom ecosystem restoration inside natural forest in the production forest asmeant in Article34 paragraph (1) letter t> shallonly be donewlLh uie provisron es follows: a. the production forest must be located insidea forest areatotality; b. abolished c. the ac'Mty is prioritizedto non-productive pro ductionforest (2) In the case of biologicalequilibrium being not yet obtainedfrom ecosystem restoration insidenatu ral forest, IUPK, IUPJL or IUPHHBK may be granted in the productionforest. n) Tn the case of biological equilibrium beingalready obtainedfrom ecosystem restorationinsidenatu ralforest, IUPHHKK may begranted intheproduc tion forest. (4) IUPKj IUPJL,IUPHHK or IUPHHBKas meantin para graphs (2) and (3) shallbe granted to privatebusi ness entities (BUMS). (5) Furtherprovision on the utilizationof timber forest product resulting from ecosystem restoration in sidenatural forest as meant in paraqraphs (2), (j) and (4) shall be governed by a regulation of the Minister. 11. provisions ..••. lSA 11. Provisions of paragraphs (2) and (3) of Article38 are amended so that Article 38 entirely reeds as follows: Article 38 (1) In the production forest, utilizatiOn of timber forest products in I-IT1 insidethe timber estateas meant inArticle 37 lettera may bedonebyonesilvyculture system or more in ecccrdence with cherecterlsncs of forest resources and environmentthereof. (2) Theutilization of timberfo,estproducts inHTIin side timber esmte shall cover activities of lend dear ing, seedling, planting, maintenance, harvesting, processing and marketing. (3) The utilization of timber forest products in HT1shall be prioritiZed to non-productive production forest. (4) Plants resulting from IUPHHK inHTIshall constitute assets or holders of business licenses and may be used ascollateralas long as the business licenses remain valid. (5) The gollt:rnmellL, illeccxdeoce with the provisions oflegislation, maysetup financial institution to sup portthedevelopment ofHTI. (6) Furtherprovlslcns 011 the uultzauon of timber for est products in HTI insidetimber estate as meant in paragraphs (1) and(2) shail begoverned bya regulation of the Minister. 12. ProviSions of paragrap/ls~1),(3) and (4) ofArticle 40 are amended so that ArtICfe "to entirely reads follows: Article 40 (1) The Minister, maee timberestate In procccnon for est, shallallocatecertain areato the development of HTR on the basis of recommendation of KPH or appointed offidal. (2) In the production forest, the utilization of timber forest products in KfR inside thetimber estale as meant In Article 37 letter b may be done by one syMaJlture system or more, in accordance with characteristics offorest resources ancl environment thereof. Guslne!lSN.~ 7676-7677/6-1B--20OQ (3) The utilizationof timber forest products in HTR in side the timber estate as meant in paragraph (2) shall cover activities of iand clearing, seedUng, plant ing, maintenance, harvesting, processing andmar kPting. (4) The utilizationof timber forest products in HTRin sidethe timber estate as meant in paragraph (2) shall be prioritized to non-productive production forest. (5) Plants resultlnq from IUPHHK in HTR shallconsti tute assets of holders of business licenses andmay be used as collateral as long as the business li censes remainvalid. (6) The government, in accordance with theprovisions of legislation, may setup finanCial institution to sup port the developmentof HTR. (7) Further provisions on the utilizationof timber for est products in H-I t{ Inside timber estateasmeant in paragraph (2) shall be governedbya regulation of the Minister. 13. Provisions of paragraph (1) letter a and b of Article44 and paragraph (3)areamended and provision of para graph (1) is supplemented by one new letter, namely letter c as well as a new paragraph is supplemented between paragraphs (2)and (3) to become paragraph (2a) so that Article 44 entirely reads as follows~ Article 44 (1) The utilizationof non-timberforest products inside timber estate in the production fc.rest asmeant in Article 31 paragraph (2) letterf shall bethe utiliza tion of amongothers: a. rattan, sago,palm coveringactivitiesof plant ing,maintenance, harvesting, processing and marketing of output; b. resin, bark, leaf, fruit or seed, gaharu, covenng activitiesof planting,maintenance, harvesting, processing and marketingof output; c. commodities for the development of bio fuel, which are stipulated by the minister, covering activities ofplanting, maintenance, harvesting, processing andmarketingof output; (2) The .... 16A (2) The utilization of non-timber forestproducts in the timberestate asmeant in paragraph (1) may also be applied to timberestate resulting from rehabili tation. (ze) The development of raw materials of bie fuel as meant in paragraph (1) letteronlymaybe done in noo-productiVe productlan forest withtheprovision that: a. the license isgranted for a maximumperiodof 10(ten) yearsor specified period stipulatedby the minister and can be extended 011 !:hi? ~c;:k nf evaluation J which iscarried out by licensor (!oJ. eryyear; b. following the expiration of the pcrlcd co meant in letter a, the plants must be replaced forest plants. (3) t-urther provision on the unnzanon of non-timber forest products insidethe timber estate in the pro duclion forestasmeantin paragraphs (1) and (2) shall be governed bya regulation ofthe Minister. 14. Provisions of paragraph (1) letters a and b of Article 50 are amended so that Article 50 entirely reads as follows: Artide 50 (1) Thevalidity period oflUP1Lin the production forest as meant in Article 33 paragraph (1) ~pr<;;a and b shallbegranted in accordance with business ec tivitythereof, namely inthe caseof business license: (I. uUlize weter bank service, maximally 10 (ten) yearsj b. utilizewater, maximally10 (ten) years; c. ecotourism, maximally j~ (thirty five) years wlm themaximum size accounting for 10% (ten per cent) of the utilization block; d. to protect biological diversity, maximally 50 (fifty) years with size according to the need of investmentj Business News 7676-7677{&-18-2008 e. to rescue and protectthe environmentandsize of area, according to the need;and f. absorb carbon and carbon storage business, maximally30 (thirty) yearswith size according tothe need of investment. (2) IUP1Las meant in paragraph (1) maybeextended onthe basis of evaluation carried out every5 (five) yearsby licensor. 15.The provision of Article 52 paragraph (1) is amended sothat Article 52 entirely reads as follows: Article 52 (1) IUPHHKof ecosystem restoration inside natural for est in the productionforest as meant in Artide 34 paragraph (1) letter b may be grantedfor a period of 60 (sixty)yearsand maybeextended to another term of 35 (thirty flve) years. (2) IUPHHKof ecosystem restoration inside naturalfor est shall beevaluated every5 (five) years by the Minister as the basis for continuation of the license. (3) IUPHHKof ecosystem restoration inside natural for est is on~! grantedonceandmay not be extended. 16. Provision of Article 53 paragraph (1) is amended- so that Article53 entirely readsas follows: Artide 53 (1) IUPHHK in HTI inside timberestate in the timber estate asmeant inArtide 37letteramay begranted for a period of 60 (sixty) years and may be ex tendedto anotherterm of 35 (thirty five) years. (2) IUPHHK inHTlinside the timberestate shall beevalu ated every 5.(flVe) years by the Minister asthe ba sisfor continuationof the license. (3) IUPHHK in HTI inside the timber estate is only grantedonceandmay not be extended. 17. Provision of Article 54 paragraph (1) isamended so that Article54 entirely readsas follows: Article S4. • . . ' Article 54 (1) IUPllIlK in IITR inside timber estate In the timber estate as meantinArticle 37 letterb maybe granted for a period of 60 (sixty) years and may be ex tended to another term of 35 (thirty five) years. (2) IUPHHK In HTRinside the timber estate shall be evaluated every 5 (five) years by the Minister as the basis for continuation ofthlil license. (3) lUPHHK in HTR inside the timber estale is only granted once and maynot beextended. 18.Theprovision of Article 56 15 amended SO that Article 56 entirely reads as follows: Article 56 IUPHHBK insidenaturalforest in the produc tion forQGt as meant in Artirlp. 41 paragraph (1) shall be granted for a period of 25 (twenty five) years at the maximum and may be extended on the baroil: of ev.<lI~I::Itinn rarrled out every year by licensor. lQ. The provlslon of Artidp S7is amended50that Artide 57 entirely reads asfollows: 17A b. governor, in inter-regental/municipal forest area locatedin jurisdiction thereof with a rnrv made available to theMinister, regent/mayor andhead of KPH; L the Ministf'r. in inter-provlnctat forest areawith a copy made available to governor, regent/ mayor and headof KPHi or d. the Minic;ter, inarea already burdened bv IUPHHK of ecosystem restoration inside forestinthe pro duction forest notyet achieving ecosystem equi libriumwith a copymade available togovernor, regent/mayorand headof KPH. (2) IUPJL for the utilization of water bank and water shall be issued in accordance with water resource legislation after securing technical recommenda tion from the institution in charge of forestry af~ fairs. (3) lUPJL asmeant inparagraph (1) shall beissued on the basisof gUidelines, criteria and standards, (4) Further provislonon guidelines, criteria and stan dards of the issuance of IUPJL as meant in para graph (2) shall begoverned by a requlatlon of the Minister. Article 57 IUPHHBK insidetimber estate in the ProdUCM tion forest as meant in Artide 44 paragraph (1) shall be granted for a period of 25 (twenty five) years at the maximum and may be extended on the basis of evaluation carried out every year by Ii('f"n~nr 20. Anew paragraph issupplemented between paragraphs (1) and (2) of Article 61 to become paragraph (1a) so that Article61 entirely readsas follows: Article 61 (1) tusn.snan be issued by; a. regent/mayor, in forest area located in juris diction thereof with a copy made available to governorand headof KPH; BUGi~ News 767Fa-1677jfl-1 8-2008 21. Provision of paragraph (4) of Article62 isamended SO that Article 62 entirely reads as follows: Artide 62 (1) IUPHHK innatural forest shall be issued bytheMin ister on the basis of recommendation of governor after securing consideration from regent/mayor. (2) IUPHHK ofecosystem restoration inside naturalfor est shan be issued by the Ministerwith a copymade available to governor, regent/mayor and head of KPH. (3) IUPHHK in IfTl insidetimber estate shall be issued by the Ministeron the basis of recommendation of governor already securingconsideration from re gent/mayor. (4) IUPHHK in HTR inside timberestate shall beissued bytheMinister and theauthority may bedelegated to regent/mayor or appointedofficial. (5)1UPHHK . (5) IUPHHK in HTR inside timberestate shallbe issued by the ministeror appointed officialon the basis of recommendation of governor after securing con sideration from regent/mayor. 22. Provision of letter b of Article 65 is amended so that Article65entirely reads asfollows: Article65 IPHHBK insidenatural forestor timberestateshall be lsseedbv: a. regent/mayorin area insidenatural forest or tim ber estate located in jurisdiction thereof with a copy mArip AVAi1Ahlp tn the Minister,governorand headof KPH; and b. governor in area inside inter-regental/municipal natural forest or timber estate located in jurisdic tion thereofwit a copymadeavailable to the Minis ter, regent/mayor and head of KPH. 23. Provisions of paragraphs (2) and (5) of Article70 are amended and a new paragraph is supplemented be tween paragraphs (2) lind (3) to become p<lrllgrilph (2a) SO that Article70 entirely readsas follows: Artide70 (1) Every holder of business license to utilize forestshall entitle to undertake activities and obtain benefit frombusiness outcome mereor Inaccordance WIth the obtained license. (2) Holders ofIUPHHK insidenaturalforest in the pro ductionforest as meant in Article34 or holdersof IUPHHK in HTI inside timber estateasmeantinAr ticle 38maybe granted: a. the expansion of working area in surrounding location as longasthe areais not burdened by business license to utilize forest and is priori tized to locatton insideproduction forest man agement totality; b. IUPK or IUPJL in workingareathereof. Business News 7676-7677/6-18-2008 l8A (2a) Theexpansion asmeant inparagraph (2) maynot begrantedto holders of IUPHHK inside naturalfor estor timber estate havingpoor performance. (3) Theholders of IUPHHK in HTR insidetimber estate asmeant inArticle40 shallentitle to obtainaccom panying in theframeworkof institutionfortification by regentor appointedofficial. (4) Holders of IUPHHK in HTHR in the form of coopera tive as meant in Article42 paragraph (7) shallob tain a productionsharingright in accordance with the amountof investmentspentfor forest rehabili tation. (5) Further provision on the issuance of IUPHHK as meant in paragraphs (2), (za), (3) and (4) shall be governed by a regulation of the Minister. 24. Provtsion of letter a of Article 71 is amended and a newparagraph issupplemented to become paragraph (2) 50 that Article 71 entirely readsas folbws: Article 71 (1) Every holderof business license toutilize forest shall be oblige<i to: a. formulate action plan for all workingareas; b. implementconcreteactivitiesin the field, in not later than: 1) 6 (slx) monthsas from the dateof issuance of business license to utilize forest area, environmental service and non-timber for est products; 2) Onemonth as from the date of issuance of license to collectforest products; 3) Oneyear, in thecase ofIUPHHK inside natu ral forest, IUPHHK of ecosystem restoration insidenatural forest or timber estate; or 4) 6 (slx) monthsas from the date of issuance of license to sell upright of forest products insideforest resultingfrom rehabilitation. c. arrange borders of working areas in not later than one year as from the date of issuance of IUPHHK Inside naturalforest or timber estate; d.protect........ d. protect forest in working area thereof; r:o. undertake finanrial m;m:t/JpmPnt nf hll<;inp<;<; ar tivity thereof in accordance with the forest ac countancy standards effective for holders of business license to utilize f-orest; f. employ professionals in the forestry field and other personnel fulfilling the requirements in accordance with the need; g. undertake sylviculture system inaccordance with local condition; h. useforest product utilization equloment in ac cordance with the provisions in force; and i. paycontribution or funds inaccordance with the provisions of legislation. (2) Every holderof business license to utilizeforestshall beprohibitedfrom felling the protectedtimber. 25. Provision of letter b of Article 74 is amended so that Article 74 entirely readsas follows: Article 74 Besides fulfilling the obligations as meant in Ar ticles 71, 72 and 73 paragraph (1) up to paragraph (4), holders oflUPHHK in natural forest shall be pro hibitedfrom: a. felling timber exceeding the tolerable target, ac counting for 5% (fIVe percent) of the total target of volumedetennined in RKT; b. felling timber exceeding the tolerable target, ac counting for 5% (fwe percent) of the volume by groupof timber kind stipulated in RKT; c. fellingtimber before RKT is legalized; d. fellingtimber for making corridorbeforethe license isissued or by waycontravening the license to bUild corridor; e. felling timber below the limit of the permitted di ameter; f. felling timber outsidethe permitted felling block; g. fellingtimber to build roadfor laneof timber trans portoutsideRKTblock, unless otherwise permitted by the authorizedofficial; and/or h. leaving workingarea. Business News7676-7677/6-18-2008 19A 26.Provisions of letter I, letter j of paraqraph (1}and para graph (4) .are amended and provisions of paragraph (1) letter d, paragraph (3) letter c and letter d are abolished and a new provision is inserted between paragraphs (1) and (2) to become paraqraph (La) and a new paragraph is supplemented to become para graph (6) so that Article 75 entirely reads as follows: Article 75 (1) Besides fulfilling the obligationsas meat in Articles 71 ana 72, nomers Of IUPHHK In HT1mstoe timber estate shall beobligated to: a. formulate long-term actionplanfor the utiliza tion of timber forest product (RKUPHHK) for all workingareas andcomplete theplanin not later than one year after the date of issuance of the license andsubmitit to the ministeror appointed official to secureapproval; b. formulateannualactionplan(RKT) onthe basis of RKUPHHK asmeant in letter a for the need of legalization by head of KPH oroffICial appointed bythe Minister; c. submit RKT in not later than 2 (two) mothsbe fore RKT wor1<s; d. abolished: e. administerforest products; f. measure or verify forest product; 9 undertake sylvirulh IrP~pm in <lrrnmanlP with the developed locationand kindsof plant; h. provideand supplytimber raw material to for est product-based industry; i. providearea in accordance with plan in RKT as a space of life plants for area in partnership WiUl1oc.al communities; j. undertake planting in area of H11 in notlater than one year in accordance with the planting plan In tl..K r as from the date or legalizatIon of RKT;and k. convey performance report periodically to the Minister. C1a) RKUPHHK..•.• (la) RKUPHHK shall be formulated for a period of 10 (ten) ycor.; by cbccrvlnq long-term KPH manage mentplan. (lb) RKUPHHK shallbe formulated for a period of 10 (ten) years lJy ullsefvi/IY the IUllY-lt:1.II1 KPH man agementplan. (2) In tile case of RKT asmeantInparagraph (1) letter b fulfiUing the criteria eoo IndICators stipulated by the Minister, holders of IUPHHK in KT1 may be granted authority and responsibility to implement tt without legalization fromthe authorized ollidal (self approval). (3) Besides fulfilling the obligation as meant in para graph (1) letters e, f and 9, IUPHHK in HTR inside timberestateshall beobliged to: a. formulate lono-termactionpianfor theutiliza tionof timberforestproduct (RKUPHHK) lor all working areasandcompete the plan'lnnotlater than one year attPr thE:> date of issuance of the liCenSe andsubmitit to the ministerorappointed official to secure approval; b. formulate ennuel action plan (RKT) submitted in not later than 2 (two) months before RKT of the currentyeari c. abOliShed d. abolished (4) Holders of IUPHHK in IffHR inside timber estate shall formulate RKi to be submitted In not later than 2 (two) monthsafter the license is issued. (5) Besides fulfilling theobligations asmeantin Articles 71,72 and73 paragraphs (I) and (4), holders of IUPHHK intimberestateshall beprohibited from: a. felling timber for makingcorridor beforethe li~ cense is issued or by way contravening the li censeto build corridor; b. IGaVing working "rPl" (6) Head of KPH or offiaal appointed by the Minister mayfacilitate theobligations asmeantin paragraph (3) Irllt:,~ d 000 b. Business Npw<;. 7676-7677/6-18-2008 20A 27. Provisions of paragraphs(1), (2) and (4) of Article81 arc emended and pro...i5ion of paragraph (1) boopplc mented bya newletter; namely letterd sothat Article 81 entirely readsas follows: Article81 (1) IUPHHK inside natural forest,IUPHHK in IffHR in side timber estate! IUPK, IUPJL, IUPHHBK and IPHHBK maybe extended,except: a. IUPHHK of ecosystem restoration insidenatural forest; b. IUPHHK in HTI insidetsnberestate; c. JUPHHK in HTR insidetimber estate; d. IPHHK insidenatural forest. (2) The applicationfor extensionof: e. IUPIII IK In.~jde natural forest sholl be ~ubmitt:Cd in not later than 2 (two) years before the li cense expires; b. IUPHHK inside HTHR shall be submitted In nor later than 2 (two) years before the licenseex pires; c. IUPKand IUPJLshall be submitted in not later than6 (six) monthsbeforethe license expires; d. IUPHHBK shall. be submttted innot than one year before the license expires; e. IPHBBK shall be submitted in not later than 3 (three) month!i before the licen£Q QXpires. (3) In the caseof the license expiring and licensees not submitting the application for extension asmeant in paraqrapn (Z), licensorsnamssue d uectsion on abolitionof the license. (4) Theextension-of: a. IUPHHK insidenaturalforest or IUPHHK in HTHR inside Umber estateasmeantinparagraph (2) letters a and b shall be granted by the Minister or the appointed official on the basis of recom mendation from the governor after securing eom:ideration from ~t/m::Jyor; b. IUPK ..... 21A b. IUPK, IUPJL., IUPHHBK andIPHHBK asmeant in letters c, d and e shall be granted by: 1) regent/mayor, insider forest area located in jurisdiction thereof with a copy madeavail able to the Minister, governor and headof KPH; 2) governor in inter-regental{munidpal forest area IocalecI injurisdiction thereofwitI1 aCDf1I madeavailable to the Minister, regent/mayor and head of KPHi and 3) the minister, ininter-provinclal forest area with a copymadeavailableto governor, re gent/mayor andhead of KPH. (5) Furtherprovision on procedures and requirements for the extension of the licenses as meant in para graph (4) shall begoverned by a regulation of the Minister. 28. Provisions of paragraph (1) letter b and paragraph (2) of Article 96 are amended so that Article 96 entirely reads asfollows: Article 96 (1) Based onthestipulationof working areaasmeant inArticle 93 paragraph (1)andfacilitation asmeant inArticle 95 paraqraph(1): a. the Minister, shall issue IUPHHK inside social for est in working area of social forest with a copy madeavailable to governor, regent/mayorand headofKPH; b. governorinworking areaof inter-regental/mu niapal sodal forest located injurisdiction thereof , regent/mayor in working areaof social forest located Inlurisdictianthereof, whichcover busi ness activity to utilize area, plan timber forest plants, utilize environmental services, utilize non-timber forest products,and collect timber and non-timberfor'e5t productionj c. ropyrllicense issued bygovernor is madeavail able to the Minister, regent/mayorand head of KPH andropyof noense issued by regent/mayor ismadeavailable to the Minister,governorand headofKPH. Business Nev.s 7676-7677/6-18-2008 (2) In certain conditions, the IssuanceofIUPHHK inside the social forest asmeant in paragraph (1) letter a maybe delegated by the Minister to tho appointed official. (3) IUPHHK inside the social forest as meant in para graph (1) lettera shall be issued to iocal commu nity group in the form of cooperative. (4) Tlje lJu~irl~ 1iU::11~ lu l,.IUIiLt':~I rOleMcc> Illt:dnt in paragraph (1) letter b shall be lssued to local communitygroup. (5) Holdersof business license to utilize social forest, besides undertakingforest exploitationactivit8ies, shall manage forest in accordance with the prin ciples of sustainable forest management. (6) The business license to utilizesocial forest asmeant in paragraph (1) letter b shall be granted for a period of35(thirtyfive) years and may be extended. (7) The issuance of the business license to utilize so cial forest as meant in paragraph(1) letter b shall be based on guidelines,criteria andstandards. (8) Further provisionon guidelines, criteria and stan dard of the issuance of the business license to utilizesodal forest as meant in paragraph (7) shall begovorned by a regulation ofthe Minister. 29. Provision of Article 118 is amendedso that Article 118 entirely readsas follows: ArticloU8 (1) Allforestproducts resuiting from concession forest sha"be subjectto stipulationof kind,measuring of volume/weight and calculationof Quantity aswell as be eculpoed by certificate of orlqln of conces sionforest products. (2) Furtherprovision on stipulationof Idnd, measuring of volumejweight and c:ala.llationofquantity as well as be equtcoed by certificate of origin of conces sion forest products as meant in paragraph (1)) :;hall be governed by a regulation of the Minister. 30. Provisions ... ' . 30. Provisions of paragraphs (2) and (3)of Article120are amended and supplemented by a new paragraph, namely paragraph (4) sothatArtide 120entirelyreads as follows: Article120 (1) The documentasmeant in Artide 119 shall be in accordance wfth physicof the carried forest prod ucts. (2) The physical conformance of forest products as meant in paragraph (1) shall consider result of measuring bymeasuring officerandresultof mea suring bysupervisor of measunnq officer. (3) In the case of result of measuring by measuring officerbeing different from resultof measuring by supervisor of measuring officert thedifference may notexceed the tolerance stipulated bythe Indone sianNational Standard. (4) Furtherprovision on regulation of the measuring andverification shallbe governed by a regulation of the Minister. 31. A new letter is supplemented between letter c and letterd otthe provisions of Article 128paragraph (1) to become paragraph c.l so that Article128entirely reads as follows: Article128 (1) The administrative sanction asmeantinArticle 127 maybe in the form of: a. suspension of administrative service; b. SUSPeOSion of activities in the field; c. fine; d. reduction of pnxluctionquota; or e. re'ilocationof iic.ense~ (2) Theadministrative sane.tion asmeantin paragraph (1) shall beimposed by licensors inaccordance with their respective scooes of authority as meant in Article 60 up to article 55 but the administrative sanction in the form of fine shall beimposed bythe MinislPr. Business News 7676-7677/6-18-2006 22A (3) Theadministrativesanction in the form of fine as meant inparagraph (1) lettercshall constitute non taxstate revenue (PNBP) remitted tothe state cash. 32. Provisions of lettersa andcdArticle129areamended andtwo newlettersaresupplemented to become let ters d and e so that A.rticle 129 entirely readsasfol lows: Article129 Theadministrative sanction intheformof sus penston or administratIVe service as meant In Article 128paragraph (1) letter a shallbe imposed: a. holders ofIUPHHK inside natural forest in produc tion forest that commit violation of the provisions as meant in Article 71 letter c, letter d, letter e, letter9, Artide 73paragraph (1) letterf or letterg; b. holders of IUPHHK ofecosystem restoration msldc naturalforest in the production forest that commit violation of the provision as meant in Artide 73 paragraph (5) letter 9i c. holders of IUPHHK in IfTl inside timber estate in production forestthat commitviolation of the pro visions asmeant in Article75 paragraph (1) letter g, letter h, letter I or letter k; d. holders of IUPHHK in HTR inside timber estate in productinn fnrP~ that commit violation of the pro visions as meant in Article 71 letter at letter b or Article75 paragraph (3) letter a; or 1". holders of IUPHHKcommittingviolation of the pro vision asmeant in Article77paragraph (1) letter c or letter d. 33. Provisions of letters a,b,c and f of Article 130 are amended and two new letters are supplemented be tween letters c andd to becomeletters ci anda so that Article130entirely readsas follows: Article130 The administrative sanction in the form of suspension of activitiesIn the field asmeant in Article 128shallbe imposed on: g. holders..... a. holders ofIUPK or IUPJL committing violation of the provisions as meant in Article 71 letter c, letter d, If'ltpr e, Iettf>r 9 nr tptter T; b. holders of IUPHHK insidenatural forest in produc tion forestcommitting violationof the provision as meant in Article 71 letter h; c. holdersoflUPHHK of ecosystem restoratioo inside naturalforest in productionforest committingvio lationof theprovision as meant in Article71 letter h; c1. holders of IUPHHK in H11 insidetimber estate in production forest committingviolation of the pro vision asmeant in Article 71 letter h; c2. holdersof IUPHHK in HTR insidetimber estate in production forestcommittingviolation of the provi sionasmeant in Article II letter hi c.2. holders of IUPHHK in HTR insidetimber estate in production forestcommitting violation of the provi sion as rneent ill ArLicle 71 paragraph (i), d. holdersofviUage forest managementright in pro tected forest or productionforest committing viola tion of the provision as meant in Article 91 para graph(1); e. holdersof Village forest managementright Violat ing the provisions as meant in Article 91 paragraph (2) letter a, b or c; or f. holders orIUPHHK violating the provisions asmeant in Article. 98 paraaraph (1), paragraph (2) letter a, letter b or letter c. 34. Provision of Article32 isamendedand supplemented by twonew letters, namely letters I and j so that Ar ticle 132 entirely reads asfollows: Article 132 The administrat:We sanction in the fann of fine as meant in Article 128 paragraph (1) letter c shallbe imposed on: a. holders of IUPHHK insidenatural forest in produc tion forest that commit violationof the provisions as meantin Artide73 paragraph (1) letter d, letter e, Micle 74 letter a or letter b witlt the obligation to payfine amountingto ten timesPSDH; Bus e5S~s 7676-7677/6-18-2008 23A b. holders of IUPH HK insidenatural forest in produc tion forest that commit violation of the provisions as meant in Artk:le 71 paragraph (2), Article 74 letter c, letter d, letter e, letter for letter 9 with the obligation to pay fineamounting to 15(fifteen)times PSDHi c. holders of lUPHHK of eoosystem restoration inside natural forest in theproduction forest that commit violation of the provision as meant in Artide 73 parcgraph (5) letter e or letter f with the obligation to payfine amounting to ten times PSDH; d. holders of IUPHHKof ecosystem restoration inside naturalforest in the production forest that commit violation of the provision as meant in Article 71 paragraph (2) lettere or letterfwfth the obligation to payfine amounting to 15 (fifteen) times PSDH; e. holdersof IUPHHK in H11 insidetimber estate in production forest that commit violation of the pro visions asmeant in Artlde 75 paragraph (1) letter e or letter f with the obligation to pay fine amount ing to ten times PSDHi f. holders of IUPHHK in IiTR and tffR insidetimber estate in production forest that commitviolation of the provisions as meant In Artide 7S letter a with theobligation topayfine amounting to15 (fifteen) timesPSDH; g. holders of IUPHHBKvkJlcrtlng the provision as~nt in Article76 letter d or letter e with the obligation topay fine amounting tx> ten times PSDH; tl. holdel'!> or IP+lHK'Iioioting the provision of Article 77 paragraph (1) letter e with theobligation to pay fine amountingto fwe times PSDH; l, hulders urIPHHK or IPHHBK violating the provi5ion as meant in Article 71 paragraph (2) or Artide 77 paragraph (2) with the obligation topayfinearnounl lng to ten tImes PSDH aqamst the excess ur rur~l product; j. holders onPHHBK Violating the provision asmeant InArtICle 78 with the obligation to pay nnt:: ernount ing to ten times PSOH against the excess of forest product. 35. Anew ...•. 24A 35. A new article is supplemented between Article 132 and Article 133 to becomeArticle 132A, which reads as follows: Article 132A The administrative sanction in the form of oouction of productionQuota as meant in Article128 paragraph (1) lettercl shall be imposed on: a. holdersofIUPHHKinsidenatural forest in produc tion forest aJl11miWng violationof tne prcvrslcn O~ meant InArtide72paragraph (1)orArtide73para graph (1) letter c; b. holdersof IUPHHK of ecosystem restoration inside naturalforest In productionforest committingvio lationof the orovisionasmeant in Artide 73 para graph(5) letterb point 2) or lellere point2); c. holdersof IUPHHK in HT1 InslcJe timber estate in production forest committing violation of the pro vision as meant in Articlen paragraph (1) or Ar ticle75paragraph (1) leller c; d. holders of IUPHHK In HTR Inside timber estate in production forestcommitting violation of the provi sionas meant in Article 75 paragraph (3) letter b; e. holdersof IUPHHBKcommitting violation of the pr0 vision as meant in ArtIcle 72 paragraph(1) or Ar ticle 76 Ictber b or letter Cj or f. holdersof IUP.:JL committing violation as meant in Article 72 paragraph (I). 36. Provisions of lettera up to letter n of Article 133 are amended but letter b, Jetter e and letter are abolished sothat Article 133 entirelyreads asfollows: I\rtide 33 The administrative sanction in the form of revocation of jcenseasmeantin Artide 128paragraph (1) letterd shall be Imposed on: Busin86SN8YoS 7676-1677/6-18-2008 a. holders of IUPK or IUPJL Violating the provisions as meant inArticle20,Artide 71 letter a, Jetter b point 1), Jetter f, letter I, subject to the penal sanction as meant in Article78 of law No.41/1999 on forestry ordeclared bankrupt bythe districtcourt; b. abolished c. holders of IUPHHK inside natural forest in the pro duction forest violating the provision as meant in Article 20, Article 71 letter a, letter b point 3), let ter f, lellerI, Article 73paragraph (1) lettera,Article 74letter h, subject to the penal sanction asmeant in Article 78 of LawNo.41/1999on forestryor de clared bankruptby the district court; d. holdersof IUPHHK of ecosystem restoration Inside returet forest in production forest violating the pro vision asmeant in Article20,Artide 71 letter a, let ter b point3), letterf, lelter I, Article 73paragraph (5), lettera, leller b point I), letter c point1, the penal sanction asmeant inArtide7B ofUlW No.41/ 1999on fnreIDy or dedared bankruptby the dis trict court; e. abolished f. hoIdersofIUPHHKin HTIin timberestaleln pr0 duction forest violating the provision as meant in Article 20,Article 71 lettera, letterb point3), let ter f, Ielterg, letter I,Article75paragraph (1), let ter a, letter c, paragraph (5) letter b, subjectto the penal sanction as meant in Article 78 of Law No.41/ 1999 on forestJy or declared bankrupt bythe dis trict rourt; g. holdersof IUPHHK In HTR insidetimber estate in productionforest violating the provision asmeant in Article 20, ArtiCle 71 letter b point 3). letter I. Article75 paragraph (5) letter b, insidetimber.es tate in productionforest violating the provision as meant InArtIde; h hg!ders 'SA h. holders of IUPHHK in I-fTR violatingthe provision as meant in Article 71 letter a, letter b point 4) or letter Ii i. abolished; j. hnrrlprenfTPHHKnrTPHHBKvinl;rtingtheprnvis.innc; as meant in Article 20, Article 71 letter a, letter b point 2), letter I, Article77 paragraph (1), Jetter a, letter h or subject to the penal sanction as meant in Article78 of LawNo.41/1999on forestry; k. holders oflUPHHBKviolating theprovision asmeant in Artlde 71 letter a, ~r I or Article 76 letter a; I. holders of IUPHHK In SOCial forest in conservation forest, except nature reserves or core zoneof na tional park or protectQd fn~"r prot:hlrTinn fnrPC:.t violatingthe provision as meant in Article97 para graphs (I), paragraph (2) or Article 98 paragraph (2) IetW d; m. holdersof village forest managementright violat ing the provision as meant in Article90paragraph (1), paragraph (2) or Article 91 paragraph (2) let ter d; or n. holders of IUPHHK Inside HKm violating theprovision ;J::: meant in Article 97 paragraph (1), pilragraph (2) or Article 98paragraph (2) letter d. 31. The provision of paragraph (1) of Article 133 is amended sothat Article 133entirely reads asfollows: Artidc 133 (I) In orderto provideopportunity for hoiders ofIUPK, IUPll., naturallUPHHK, lUPHHK ofecosystem resto IdliUIl illnaWlol rQl~ IUPIR\K in KT1, IUPIII IKin HTR, IUPHHK inHTHR, IUPHHK inHKm, IUPHHBK, IPHHK or IPHHBK to fulfill theirobligations, before the license Cl5 llleant inArticle 133is revoked, writ ten waming shall be issued three times consecu tively at the maximum Ina period of 30(thirty)days torevery warning, unless otherwise the revcceuon of license is attributable to violation of Article 20, the imposititlnof the fDrestryor decision on bank rupt by the dlstnetCOUrl. Business NeWI;O 7676-7677j6-1R-7nnR (2) The revocation of the license as meant in para graph (1) shallbe done following the expiration of the period of the third warning, the license holders shallnot fulfill their obligations. 38. The provision of Article 141 isamended sothat Article 141entirely readsas follows: Article 141 Stipulationof the sizeof KPH areaas meant in Articlp ,; and Article 7 c;h",n be sPttlPrl in not later than 3 (three)years asfrom the dateof enforcement of this governmentregulation. Article II Thisgovernment regulation shall comeinto force as from the date of promulgation. Forpubliccognizance, the government reguli;ltion shall be promulgated by placing it in Statute Book of the Republic of Indonesia. Stipulatedin Jakarta On rebruQry 4,2000 THE PRESIDENTOF THE REPUBLlC OF INDONESIA Sgd DR.! l.SUSILO BAMBANG YUDHOVONO Promulgated in Jalolrta On Februtuy ot,2008 THE MIINSTER OF LAW AND HUMAN RIGHTS Sgd ANUl MATIALAIIA STAlUTE BOOK OF THE REPUBLlC OF INDONESIA YEAR 2008 NUMBER ie EWODATION ...... (To be continued ) ===(R)==~ 51\ THE AMENDMENT TO GOVERNMENT REGULATION NO 6/2007 ON FOREST ARRANGEMENT AND FORMULATION OF FOREST MANAGEMENT PLAN AS WELL AS FOREST EXPLOITATION (Government Regulation No, 3/2008 dated February 4,2008) [Continued from BIIsiness Npws No 7fi7fi flngps10A-2SA) ELLKlDATION CX\I. GOVERNMENT REGUlATION NUMBER 3'YEAR 2008 REGt\RDING THE AMENDMENTTOGOVERNMENT REGULATION NO6/2007 ONFOREST ARRANGEMENT AND FORMULA" nON OF FOREST MANAGEMF:NT PI AN AC; WFLI AS RORESTEXPLOITATION I.GENERAl Inabid toenhance the effectiveness andefficiency offorest. management in efforts to preserve forestCOr\" servation,whichis realized by, among others, arranq ingforestand fonnulating forest managementas well as exploitation plan in the framework of con..ervini) thf' forest, it is necessary to govem: L Procedures for stipulating: a. KPH in one or severalbasicfunctions of forest in ooejurisdictiol'l or inter-jurisdiction; and b. sze of area of KPH whIch I~ redHLet.I in rarest area followingthephaseof borderarrangement (J( stipulation of forest area. 2. Stipulationof organizationof KPHK, KPHL and KPHP by the Minister on the basis of recommendations of proVincial governments or regental/municipal governments inaccordancewith their respective scopes of authority and technical consideration nf Rusiness News771219-12-2008 provincial governments, unless otherwise stloula tion of organization of KPHK does not require rec ommendation from regional government. 3. Authority of the Minister or appointedofficials to 112 gdlizc lonq term forest management plan formu lated by headof KPH. 4. Collection of nOll-timber forest productsin protected forest, which must result from reforestation and/or beavailable naturally. 5. Utilization of timber forest product in HTI nnn HTR and non-timber forest product in production forest must alsocoverthe processing and the implemen tation thereof is prioritized to unproductiveproduc tion forest area 6. ValidityPerind nf n lPHHK: a. restoration of ecosystem inside natural forest in the production forest: b. in HTI and rrTR inside timber estate in the pro duction forest, i". granted for 60 (sixty) years and may be ex tendedoncefor a periodof 35(thirty Five) years. 7. The issuance ofIUPHHK in HTR insidetimber estate becomingauthority of the Ministermay be delegated to regents/mayors or appointed officials. 8. Holders of lUPHHK inside natural forest or timber estate in the production forest may be given the expansion of areaof activity in different land located in the surrounding area as long as the area IS not charged with forest exploitation business license, exceptholderofIUPHHK havingpoor performance, 9. Prohibition: a. felling the protected wood; b. felling wood exceeding the target tolerance of 5% (five percent) of the total target of volume stipulated in RKT; c. lending or handing over partlyor wholly license to utlllzewaterstreamand license to utilizewa ter in protected area. 10.The period of formulation of RKUPHHK Isexecuted byobserving lonq-terrn management plan. 11. Provision of facility for holders of IUPHHK In HTR insidetimberestatein executing the obligationto formulate RKUPHHK andRKT. 12.CompletenQ££ of certificate of origin of rf'(;lllt: of for est concession. 13. Regulation of measuring and verification of con fonmmceofdocuments to the physics of the car riedforestproducts. Ii. Imposition or ijdrnini:>LrdUvt:~ill the form of reduction of production quota. 15.The period of stipulation of areaof KPH following the enforcement of thisgovernment regulation. Based on the above mentioned reasons, it is nec essary to amend Government Regulation Number 6 Year 2007 regarding Forest ArrangementandFor mutation of Forest M<lon~t?~ wp.1I as Forest Exploitation Plan. n, ARllQ.E BY ARTIQ.E Article I ArtiCle 6 Paragraph (1) Suffidently clear Business News 7712/9-12-2008 6J\ Paragraph (2) The function having the dominant size means if an areaof KPH consists of more than one forestfunctionr i.e,foresthaving production andprotection function andin the case anyof theforestfunctioo, i.e production function, iswiderOr dominates area having protection function, KPH isnamed KPH Production (KPHP). Thestpuleton of name of KPH based on the func tion dominant in size is intended to ensure effectiVe end efficient management. Paragraph (3) Sufficiently clear Article7 Sufficiently clear Article8 Paragraph (1) In stipulating organization of KPH,especially for issues related to humanresources, the governmentmust payattention to, among others, vocational competence re quiremcnb u...ued by profession certifICation institution in the field of forestry affairsor recognition by theMinlster. Thestipulatedorqanization of KPH is in the.formof: 1. anorganization, which: a. couldperform rnanacemem potential toyieldeco nomicvalue from the lItilization offorest in tllestate of equilibrium with the conservation, protection and social functions of forest; b. could develop investmentandmobilize job opportu nily; c. has ..... c. hascompetence to fonnulatethe spatial-based plan ningandmonltorlnq/evaluetion d. hascompetence to protect forest interests(includ ingpOblic interestsof forest); e. couldanswercoverage of locat,nationalandglobal forest management impacts (l.e the role of forest in mitigatingclimatechange); and f. is based onforestry professionalism. 2. Organization reflecting integration (collaboration/syn ergy) of the central,provinceand regencyIcity. 3.TheesI>Iblishment of organization of KPH sliil respects the eesterce or the exbUng forest exploitation units (licenses). 4. The organizational structure and job description and functionthereofguaranteethat it couldfacilitateeter nalfurestmanagement. 5. Organization flexible to adjust to localcondition/typol ogyaswell asstrategicenvironmental change influen tial to forest management. Paragraph(2) In providingtechnical considerations and recom mendingstipulationof organiZation of KPH, especially for those rt:lcltaJ Luf!ullldllle:)IJUrces, the province! govern ments must pay attention to, among others, vocational competence requirements issued byprofession certifica tion Institution in thefield Offorestry affa,irsor recognition by theMinister. Pa""''"Ph (3) In proViding technical considerations and recom mending stipulation of organization of KPH, especially for Business News 7712/9-12-2008 7A those related to human resources, regental/municipal gov ernments mustpayattention to, among others, vocational competence requirements issued by profession certifica tion institution in the field of forestryaffairsor recognition by the Minister. paraorach (4) Abolished paragraph (5) Abolished Paragraph (6) Theministerial regulation governs, among others, provision on capabnitv, competence andterritorialorgani zation of KPH. Article13 paragraph (1) Sufficiently clear Paragraph (2) Sufficiently clear Paragraph (3) Sufficiently clear Paragraph (4) teuer a Sufficiently clear Letter b SUfficiently clear Letterc Strategy and feasibility of forestmanagement de velopment areviewed from aspects of areamanagement, forest management andinstitutional arrangement. The d~lopm~nt of forest management ls directed to maximizeproduction functions and services of forest re sources andenvironment thereof, be it timberproduction, non-timber production, environmentalservice throughthe basicactivities, namelyutilization,communityempower ment es WelillSenvironmental COllSCrvation which consti tute a totalitYof activity. Paragraph (S) Suffidentlydear Paragraph (6) letter a SUffldently clear Letterb SufficIently dear Letterc Sutfidenttv dear Letterd SUffidently~r Lettere Suffidently dear SA whichcoulddescribe reserves of forest resources through the comparison of utilization, induding lossof forest re sources and restoration, including natural restoration ot forest resources so that in a specified time, we couldas certain whetherthe forest resource reserves tendtorecord a surplus or deficit c.ornpared to the previous condition. letterg Suffidentlydear Letterh Parties mean managers of KPHI authorizEld gov ernment representatives aswe" representatiVeS of com munities receiving benefitsand impactsof KPH manage ment. Parties may partidpate bymeansof conveying in formatlon as a fonn of lowestpartic:ipation uplO involve ment in every phase of the formulatiOn afforest manage rnentplan. Paragraph (7) Sufficiently dear Artide 14 Suffidentlydear Article 15 Paragraph (1) Suffidentlyclear Paragraph (2) Letterf I-'oten£lals of environmental services in the pro Balance of forest resources means information teeted forest maybe in the form of: Business News 7712/9-12-2008 a. water, ..•. a. water regulator; b. providerof naturalbeauty; c. providerof biological resources; or d. carbon absorberand saver. Theenvironmental SUbstance means natural sub stancesuchasdynamicpopulationof flora-fauna,phyto geographyand non-natural substances, such as physics and chemical characteristic of soil, stones, hydrography, temperatureandhumidity. Paragraph (3) The cost meansthe service fee ufwaler resource management asmeant in Article 80 Paragraph (2) of Law Number7 Year2004 reqardingWater Resource. Thecost is paidto water resource management board as an institution authorized to manage water re sources. Pi!lRlgraph (3.1I) 5ufftdently clear Paragraph (4) Theministerial regulation governs, among others, criteria,guidance and procedures for the utilizationof en vironmentalservices. Artide26 Paragraph (l) Sufficiently clear Paragraph (2) Suffidentlyclea r Business News 7712/9-12-2008 9A Paragraph (3) Sufficiently clear Paragraph (4) Le\.\.el d The eternal productivity means the annual addi tion to size(volume, weight, quantity) of the population of species of the non-timber forest products. Letterb Sufficiently clea r Paragraph (5) Sufficiently clear Article29 Sufficiently clear Article33 Paragraph (1) Sufficiently dear f>aragraph (l) Letter a Sufficiently clear Letterb Sufficiently c1ea r Letterc Theenvironmental substance means naturaland non-natural substances aswell asecosystem process such as dynamicpopulation of flora-fauna and phyto-qeoqra phy. PaIQ9[~.PQJ3)~ . .. . Paragraph (3) The costmeans the service fee of water resou rce management asmeantin ArticletlU I-'aragraph-(L) of laW Number7 Year2004 regarding WaterResource. Thecost is paid to water resource management board as an institution authorized to manage water re sources. Paragraph (3.a) Suffidentlv dear Paragraph (4) Suffidently dear Artide36 Paragraph (1) Lettera SuffiCiently dear lOA Paragraph (4) Sufficiently clear Paragraph (5) Sufficiently c1ear Article 38 Paragraph (1) Sufficiently clear Paragraph (2) Sufficiently clear Paragraph (3) Theunproductive prodUction forestmeans forest reserved- by the Mintster asareaof timber estate develop. ment Paragraph (4) SuffidMtly dear Letterc The unproductive production forest means forest reserved by the Minister as area-oftiinber estate C\@V@lop-. ment Paragraph(2) SUfficiently dear Paragraph (3) Natural equilibiium already obtained means the returning of biotic and abiotic substances in an area has been exer:uted sothat harvesting could exeCuted inthe time. Business News 7712/9-12-2008 Paragraph (5) Suffidentlyclear Paragraph (6) Sufficiently clear Article40 Paragraph (1) Sufficiently clear Paragraph (2) Sufficiently clear Paragraoh (3) .... paragraph (3) SUffidently clear Paragraph (4) The unproductive production forest ml?;;lns fore~t reserved bytheMinister asarea of timber estatedevelop ment Paragraph (5) SUfficiently clear Paragraph (6) SuffidentiV dear Paragraph (7) Theministerial regulation governs, among others; (I. size of area; b. de\reK)pment andexpansion model; c. criteriafor location; d.legal relations between parties; and e. criteriafor individuals, groupsor cooperatives securing HTR license. Artide44 Paragraph (1) Lettera Sufficiently clear Letterb Suffidentlyclear L.etterc The Minister stipulates the commodities after securing technical considerations from the Minister in charge of agricultural affairs. 6usiness News 7712/9-12-2008 llA Paragraph (2) Sufficiently clear Paragraph (2a) ActIvities of biofuel development may not impede forest rehabilitation programs stipulated by the govern ment. Paragraph (3) Sufficiently clear Article 50 Sufficiently clear AltiLie 52 Sufficiently clear Article 53 Sufficiently clear Article 54 surncenny clear Article 56 Sufficiently clear Article 57 Sufficiently clear Article 61 Sufficiently clear Article 62 , .. , . 12A Article62 Paragraph(1) The Minister, gradually and :.elective!y, may del egate authorityto issue IUPHHK inside naturalforestin the production forest to regions, dependenton readiness of the regions institutionally, vision or mission. PcImgraph (2) SUffldently dear Paragraph(3) Suffidentlydear Paragraph (4) SUffidently dear Paragraph(5) sumClently Clear Article 65 Suffidentlydear Artide70 Paragraph (1) Sufficiently dear Paragraph (2) Lettera SUfficiently clear I flitter b Holdersof IUPHHK in5ide natural forest in the pro duction forest or holdersof IUPHHK in HTI insidetimber estate, securing IUPK or IUPJL in their workingareaabide by provision ofIUPKor IUPJL. Business News 7712/9-12-2008 Paragraph (2a) Sufficiently dear Paragraph (3) Suffidentlydear Paragraph (4) Productionsharing right means the sharing r:Ipnr due.tiOn betWeen cooperauves and pmvlndal governments or regental/munidpal governments, whichis executed pro portionally bycounting the amountof investment spentby the respective partiesin the forest rehabilitation. Paragraph (5) Suffidently clear Article71 Paragraph (1) Lettera The action plan also contains,among others, as pects of business oontinuation, envlronmenml, social and economic equilibrium. letterb Concrete activity means activityto supply mechani calequipmentminimally50% (fifty percent)of the stipu lated equipmentquantity into the workingareaaswell as ~lnp facilityand infrastructurefor holders of IUPHHK. Letterc Suffidentlydear Letterd Forest protection includes: a. preventing..... a. preventing the unlicensed harvesting of trees; b. preventing or containingforest fire; c. pmvldingforest securityfacility and infrastructure; d. preventing the huntingof wildanimals and/or protected animals: e. preventing the unlawful exploitation and/orutilization and/oroccupalion of forestarea; f. preventing forestarea fromsquallering; g. preventing the disturbance of pestand disease; and/or h. building forestsecurity un~. Lettere Sufficiently clear tetter t Professionals in the forestry sector are forestry scholars andmiddle-level forestry technical officers. 0t:t'Ia' personnel isspecialists inenvironmental, social, eco nomic and legal fields. Letterg Sutfldently clear Letterh 5ufficicntly clear Letteri SUfficiently clear pa"'!j"ph (2) SUffldently dear ArtIcle 74 5ufflcientlyclear Busli.... nl2j9-12-2008 13A Article75 Paragraph (1) Lettera RKUPHHK ismadeon the basis often-year inven tory prepared by licensees on the basis of cu'de'lnes stipu latedbythe Minister. Letterb Formulating RKT means thefirst RKT following the ratification of RKUPHHK Letterc SubmittingRKT meansRKT of the current year. Letterd Abolished Lettere Sufficiently clear Letterf Sufficiently clear Letter9 Sufficiently clear Letterh Sufficiently clear letter i Sufficiently clear Letter j Sufficiently clear letter k ..... 14A Letterk Suffidently dear Paragtaph (1.a) Sufficiently dear PaJagraph(2) Suffkiently dear Paragraph (3) Sufficiently clear Paragraph (4) Sufficiently clear Paragraph (5) Lettera Sufficjently clear l.elterb Induden intocriteriafor leaVing working area or work before the license expires ;5 as tonows: 1. notproviding equipment forexecuting their activitY; 2. the available tools orequipment notworking; 3. nopermanent worker available Intheworking area; or 4. uUlizdUun Qdivity not ovailalAe. Paragraph (6) 5u11identJy dear Article 81 Parag",ph (1) SuffICiently clear Business News nl2/9-12-2008 Paragraph (2) Sufficiently clear Parag",ph (3) SuffK:iently clear Parag<aph (4) Suffidently dear Paraqraph (~J Theministerial regulatiOn governs, among others, mPdt:'tnic;m <'100 pf"OCP('Jll~. J1F!riod, cril::eria and standards. Article 96 Paraqraph (1) Letter a Holders ot rUPHHK inside SOCial forest ale only permitted to utilize timber estate having trees ,resulting from the pl;mtil1O Lelterb Sufficiently clear Letter< SuffidentJy clear Paragraph (2) Certain condition means, among others, readiness of theregion institutionally. Paraqraph (3) Sufficiently clear Paragraph (4) .. . . Paragraph(...) Sufficiently clear Paragraph (5) SuffldenUydear Paragraph (6) SulftCiently clear Paragraph(7) Sufficiently dear Paragraph(8) The rninistcri;)\ regulation governs among others: a. procedures for issuingbusiness licenseto utilizesocial forest reftecting partialityto localcommunities; b. criteria for groupsof communities securing business license to exploitforestby recent: c. rightsandobligations of holders of business license to utUize social forest; d. abolition of license and extension of business license to utilizesocial forest; e. administrative sanctionQgainstholdersof business li cense to exploit sodal forest; and f. standardsand criteria for accountability of social for est. ArUOe118 Paragraph (1) Forest products resulting from forest concession are, among others, timber resu71ting from land charged with landtitle. Business News7712/9-12~2008 15A Paragraph (2) Sufficientlyclear Article 120 Pdragrdptl (1) Sufficientlyclear Paragraph (2) Sufficientlyclear Paragraph {3} Measuring and verification of forest products is executed by measuring andverifyingtechnical offICers with a view of obtaining technically accurateand accountable result. Paragraph (4) Sufficientlyclear Article 128 Paragraph (1) The sanction is imposed on the basis of level of violation. Serious violation is subject to revocation, lenient violation is subject to administrative sanction in the form of fine, and lighter category is subject to suspension of activityand/or administrativeservice and reduction of pro duction quota. To realize good governance, especially for seri ous violation, before the license is revoked, warning is is suedfirst as many as three times consecutively. The fulfillrns-nt of thp imposition of san-non does not abolish the obligation of licensees to pay levy in the forestry sector in accordance with legislation. Paragraph (2) . , . , Paragraph (2) Suffldentlyclear Paragraph (3) Suffldently dear Article 129 Sufficiently dear Article 130 Suffidentlyclear Article132 Letter a 16A letterf Sufficiently clear Letterg Sufficiently dear Letterh SUffidently clear letter i Sufficiently clear letterj Suffidentlyclear Thesanction againstviolationof Article73 Para graph(1) letterd, Article132A ISimposed if the license holderviolateanyat the Lettera administration activities of forest products, covering Re- The imposition of administrative sanction in the port on Cruising ReDOrt Cruising, RKT.Felling, fonn of reduction of production Quota because the relevant Report on Production Result, Paying PSDH or DR, doesnot submitRKT, onlyapplies to licensees in the case completeness of documents ofSKSKB, FAKB, andFAKO. of the submission of RKT of the second yearandso on. Letlerb Letterb Suffidently dear Suffidently dear Letter c Letterc Suffidentlyclear Sufficiently clear letterd Letterd 5uffidently dear Sufficiently dear L.ettere lettere SufflcIently clear Sufficiently clear Business News 7712/9-12-2008 Letter f..... LelIErf Sulfidently dear ArtIdeI33 SuftldentIy dear ArtIde 134 SLm:iently dear Art:ide '41 stipulation of KPH bytheMinister is followed up b'(I1ledevelopmentof institution of KPH. 17A The Minister stipulates priorities of the develop mentof institution of KPH inaccordance with the need and corcnucn o( ruresll1'ldfldgemenl. ArtideII Suffidently dear SUPPLEMENTTOSTATUTE BOOK OF THF REPLJBI TC OFTNOONESTA NUMAFR 4814