Region Regulation of the East Java Province No. 3/2003 on levy on inspection of forest-product measuring and verification

:l.SA LEVY ON INSPECTION OF FOREST-PRODUCT MEAS.URING AND VERIFICATION (Region Regulation of the East Java Province No. 3/2003 dated October 13, 2005) BY GRACE OF GOD THE ALMIGHTY THE GOVERNOR OF EAST JAVA Considering: a. that in the framework of obtaining an optimal ben efit from forest areas to social life and environmen tal conservation, concrete measures of utilization and supervision over the distribution of forest products are needed; b. that pursuant to the authority of provinces in natural resource management1 particularly in the forestry sec tor as meant in Law No. 22/1999 on regional admin istration jo. Government Regulation No. 25/2000 on the authority of the government and the authority of provinces as autonomous regions as well as Law No. 41/1999 on forestry, it is necessary to supervise and foster in the framework of ensuring the smooth dis tribution of forest producing coming into and out of the East Java Province; c. that in connection with the considerations in letters a and b, the provisions need to be mentioned in a regional regulation; In view of: 1. Law No. 2/1950 on the Establishment of East Java Province jo. Law No. 18/1950 on the Amendment to Law No. 2/1950 concerning the Establishment of East Java Province (Statute Book of 1950 No. 32); 2. Law No. 8/1961 on Criminal Code (Statute Book of 1981 No. 761 Supplement to Statute Book No. 3209); 3. Law No. 18/1997 (BN No. 6161 pages 6A - 18A and so on) on Regional Taxes and Levies (Statute Book of 1997 No. 41, Supplement to Statute Book No. 3685) jo. Law No. 34/2000 (BN No. 6582 pages SA - 12A and so on) on the Amendment to Law No. 18/1997 concerning Regional Taxes and Levies; 4. Law No. 22/1999 (BN No. 6361 pages lA - SA and so on) on Regional Ac;lministration (Statute Book of 1999 No. 60, Supplement to Statute Book No. 3839); Business News 7284/11-11-2005 5. Law No. 41/1999 (BN No. 6412 pages 1A - 6A) on forestry (Statute Book of 1999 No. 167, Supplement to Statute Book No. 3888); 6. Government Regulation No. 27/1983 on the Imple mentation of Law No. 8/1981 concerning Criminal Code (Statute Book of 1981 No.61 Supplement to Statute Book No. 3258); 7. Government Regulation No. 66/2001 {BN No. 6678 pages 2A - 7A) on Regional Levies (Statute Book of 2001 No. 119, Supplement to Statute Book No. 4139); 8. Presidential Decree No. 44/1999 on Technique of For mulat1on of Legislation and Models of Bills1 Draft Gov ernment Regulation and Draft Presidential Decree (Statute Book of 1999 No. 70); 9. Decree of the Minister of Home Affairs No. 174/1997 on Guidelines on Procedures for Collecting Regional Levies; 10.Decree of the Minister of Home Affairs No. 175/1997 on Guidelines on Procedures for Auditing in the, Re gional Levy Sector; 11.Decree of the Minister of Forestry No. 126/KPTS-II/ 2003 on Administration of Forest Products; 12.Decree of the Minister of Forestry No. 127 /KPT-II/ 2003 on Administration of Forest Product Coming from Working Areas of Perhutani for Provinces in Java; 13.Joint Decree of the Minister of Transportation, Minis ter of forestry and Minister of Industry and Trade No. KM3/2003, NO. 22/KPTS-II/2003 and NO. 33/ MPP/Kep./I/2003 (BN NO. 6873 pages 4A - 6A) on Supervision over the Transport of Wood through Ports; 14. Regional Regulation of the East Java Province No. 4/ 1986 on Civil Servant Investigators within the East Java Provincial Government; 15. Regional ..... 15.Regional Regulation of the East Java Province No. 33/2000 on East Java Provincial Forestry Service; With the approval of: THE EAST JAVA PROVINCIAL LEGISLATIVE COUNCIL DECIDES: To stipulate : THE REGIONAL REGULATION OF THE EAST JAVA PROV INCE ON LEVY ON INSPECTION OF FOREST-PRODUCT MEASURING AND VERIFICATIOM CHAPTER I GENERAL PROVISION Article I Referred to in this regional regulation as: 1. Provincial Government shall be the East Java Provin cial Government, 2. Governor shall be the Governor of East Java. 3. Service shall be the East Java Provincial Forestry Ser vice. 4. Head of Service shall be the Head of the East Java Provincial Forestry Service. 5. Body shall be a group of people and/or capital being a unit, whether undertaking business or not, which covers limited liability company, joint company, other company1 state-~ned enterprises or regional ad ministration-owned enterprise in whatever name and form, firm, joint venture, cooperative, pension fund, partnership, 'group, foundation, mass organi zation, social and political organization or other or ganization of the same kind, institution, permanent establishment as well as other form of body. 6. Forest products shall forest products in the form cf logs, processed timber and rattan coming from state forest.;, 7. Distribution of Forest Products shall be traffic of for est products in both mainland and sea. Business News 7284/11-11-2005 19A 8. Inspection shall be a series of activities of forest product measuring and verification. 9. Measuring of Forest Products shall be an activity to stipulate volume in unit of m3 for timber, weight in unit of ton for rattan. 10.Verification of Forest Products shall be an activity to stipulate kind and size of forest products. 11.Forest Product Administration shall be a system of administration in the form of recording, issuance of documents and reporting, which covers activities of planning, production, exploitation, processing and dis tribution of timber, 12.Log shall be part of tree becoming cuts (stalks free from branch or twig). 13.Processed Timber shall results of direct processing of logs into swan timber, chip/pulp, veneer, plywood and laminating veneer lumber. 14.Document shall be certificate of legitimacy of forest products and/or other certificates. 15.Certificate of Legitimacy of Forest Products (SKSHH) shall be a state document functioning as evidence of legality of the transportation, controlling and/or own ership of forest products. 16.Levy Payer shall be individual or body, which accord ing to the levy legislation, is obliged to pay levy, in cluding the collection or withholding of certain lev ies. 17. Regional-Levy Object Registration Document, here inafter abbreviated to SPdORD, shall be a document used by levy payer to report levy objects and levy payers as the basis for calculation and payment of levy1 which according to regional levy legislatiori, becomes due. 18.Regional Levy Assessment, hereinafter called SKRD shall be a document of stipulation of levy, which sets forth the amount of principal levy. 19. Criminal ..... 19.Criminal Investigation in the Regional Levy Sector shall be a set of actions carried out by civil servant fnvestigators, hereinafter called investigators, to find as well as collect evidences making crime in the re gional levy sector clear as well as to find suspects. CHAPTER II GOAL AND OBJEffiVE Article 2 The goal and objective of inspection of forest productJ;)leasuring and inspection are to ensure orderly and smooth service for the distribution of forest prod ucts in the framework of protecting state rights related to forest products. CHAPTER III INSPECTION OF FOREST PRODUCTS Article 3 (l)The transportation, control or ownership of forest products shall.be equipped collectively by Certificate of Legitimacy of Forest Products. (2) Before Certificate of Legitimacy of Forest Products is issued, the forest" products shall be inspected. (3)The forest products as meant in paragraph (2) shall be inspected in Timber Hoarding Places (TPK) and Warehouses and/or Forest-Products Collecting Places. ( 4)The inspection of forest products shall include activi ties of inspection of kind, number of stalk/piece/ bundle, size and volume of forest products. (S)The inspection of forest products during the trans portation shall be only applicable in destination place of SKSHH. CHAPTER IV NAME, OBJECT, SUBJECT AND KIND OF LEVY Article 4 (1)In the name of levy on inspection of forest-product measuring and verification, the inspection of forest product measuring and verification shall be subject to levy. (2)Levy object shall be forest-products, which will be Business News 7284/11-11-2005 20A carried by individuals or bodies. {3) Levy subject shall be individuals or bodies planning to carry forest products. (4)The levy as meant in paragraph (1) shall bea kind of general service levy. CHAPTER V STRUCTURE AND TARIFF OF LEVY Article 5 (l)The structure of tariffs of levy on inspection of for est-product measuring and verification shall be set for every m3 ( cubic meter) in the case of lags or processed timber and every ton in the case of rat tan. (2)The tariffs of levy as meant in paragraph (1) shall be set as follows: a. Log b. Processed timber c. Rattan Rp 3,000.00/m3 Rp 5,500.00/m3 Rp 4,S00.00/m3 CHAPTER VI PROCEDURES FOR COLLECTING LEVY Article 6 (l)Levy shall become due upon stipulating SKRD or other documents treated such that. (2)Levy payers shall complete SPdORD. (3)5PdORD as meant in paragraph (2) shall be com pleted clearly, truthfully and completely as well as signed by levy payers or their proxies. (4)Based on SPdORD already completed clearly, truth fully and completely as well as signed by levy payers or their proxies, levy shall be stipulated by issuing SKRD or other documents treated such that. (S)The Governor shall further stipulate model, content as well as procedures for completing and conveying SPdORD and SKRD shall be further stipulated by the governor. (6)Levy shall be settled wholly in advance. (i7) The ..... (7)The Governor shall further stipulate procedures for payment, remittance, payment pf aces of levy. CHAPTER VII SHARING OF REVENUE Article 7 (l)Revenue from the levy as meant in Article 5, after being subtracted by operational costs, shall be shared as follows: a) 70% to the province; b) 30% to regental/municipal government. (2)The sharing of revenue from levies outside the au thority of the provincial government, after being sub tracted by operational costs, shall be as follows: a) 70% to the province; b) 30% to regental/municipal government. (3)The sharing of revenue as meant in paragraphs (1) and (2) shall be further regulated by a decision of the Governor. CHAPTER VIII PENAL PROVISION Article 8 (i)Whoever.violates the provision as meant in Article 5 paragraph (2) shall be liable to imprisonment for 6 (six) month~ and/or a fine of Rp 5,000,000.00 (five million rupiahs) at the maximum. (2)The crime as meant in paragraph (1) shall be a vio lation. (3)Whoever violates the provision as meant in Article 3 paragraph (1) shall be liable to penalty and/or penal sanction in accordance with the provisions of laws in force. ( 4)The crime as meant in paragraph (3) shall be a crime. CHAPTER IX INVESTIGATION Article 9 Certain civil servant officials within the Provir cial Government shall be given special authority to in vestigate crime in the regional levy sector as meant in Business News 7284/11-11-2005 21A Law No. 8/1981 on Criminal Code. Article 10 (l)Authority of the investigators as meant in Article 9 shall be: a. receiving, searching, collecting and examining in formation or reports related to crime in the re gional levy sector in order to make the informa tion or reports complete and clear; b. examining, searching and collecting !nformatior: about individuals or bodies with regard to the truth of actions committed in connection with the re gional levy crime, c. asking information and evidences from individu~ als or bodies in connection with crimes in the re gional ievy sector; d. examining books, records and other documents related to crimes in the region levy sector: e. ransacking with a view of obtaining evidences of bookkeeping, recording and other documents as well as confiscating the evidences: f. asking assistance from experts in the framework of executing the tasks of investigation into crimes in the regional levy sector; g. asking someone to stop or prohibiting the relevant from leaving room or place: upon the inspection is underway as well as examining identities of per sons or the carried documents as meant in letter e; h. taking photograph of someone related to regional levy crime; i. summoning persons for testifying and examining as suspects or witnesses; j. discontinuing investigation; k. taking necessary actions, which are legally ac countable, to ensure the smooth investigation into crime in the regional levy sector. (2)The investigators as meant in paragraph (1) shall notify the moment when the investigation starts and convey results of the investigation to public prosecu tor in accordance with the provisions regulated in Law No. 8/1981 on Criminal Code, CHAPTER X CONCLUSION Articie ... , . Article 11 The regional regulation shall be implemented effectively on January 2004. Article 12 Matters not yet regulated sufficiently in this re gional regulation shall be further ruled by a decision of the Governor as long as they are related to the imple mentation of this regul~tion. Article 13 The regional regulation shall come into force as from the date of promulgation. · For public cognizance, the region regulation shall be promulgated by placing it Regional Book of East Java Province. Stipulated in Surabaya · On October 13,2005 THE GOVERNOR OF EAST JAVA Sgd IMAM UTOMO.S Promulgated in Surabaya On October 13,2005 THE REGIONAL SECRETARY OF THE PROVINCE OF EAST JAVA Sgd H. SOEKARWO, SH, M.Hum REGIONAL BOOK OF EAST JAVA PROVINCE YEAR 2003 NO. 1/2003 SERIES C ELUCIDATION ON REGIONAL REGULATION OF THE EAST JAVA PROVINCE NO. 3/2003 CONCERNING LEVY ON INSPECTION OF FOREST-PRODUCT MEASURING AND VERIFICATION I. GENERAL Forest as Indonesia's natural wealth has been proven to contribute greatly to the development. Vari ous products collected from forests have been able to Business News 7284/11-11-2005 22A provide business opportunities for communities. In line with the realized development activities, the existing forest resources turn out to trigger illegal logging. Illegal logging has been proven to bring about serious impacts ecologically in the form of degradation of forest resources and also economically in the form of the decreasing state income from the forestry sector. Measuring and verification of forest products constitute a process of administration of forest prod ucts, namely a procedure for recording and reporting forest products collected from state forests. The admin istration of timber businesses will be able to provide certainties about legality of ownership and control over forest products as well as security for state revenue from the carried forest products. II. ARTICLE BY ARTICLE Articles 1 and 2 Sufficiently clear Article 3 Paragraphs (1) and (2) Sufficiently clear Paragraph (3) Forest products are inspected in place where the would-be carried forest-products are located, be it Timber Hoarding Place (TPK), warehouse, collecting place or other place. Forest products cannot be inspected in log pond, aboard carriers, such as truck, ship or in container. Paragraph ( 4) Inspection of forest products constitutes a series of initial activity related to the issuance of SKSHH. Inspection is only applied to logs and processed tim ber as well as rattan coming from state forests. Technique of inspection of logs: ,a. calculating the number of stalks of all log portion (100%) and examining completeness of initialing (no. diameter, length and kind) as well as initialing mark of marking hammer DK; b. taking samples randomly from the total stalks with the provision as follows: 1) In ..... 1) In the case of the number of stalks from one portion being less or the same as 100 stalks, the number of samples is 100%; 2) In the case of the number of stalks from one portion ranging from 101 to 1,000 stalks, the number of samples is 100 stalks; 3) In the case of the number of stalks from one portion being more than 1,000 stalks, the sample is 10%. c. Crosschecking the kind and size to the sample and inserting the results into a Log Inspection list (DPKB). d. Calculating and comparing kinds and sizes of logs resulting from the inspection to kinds and sizes writ ten in DHH; e. Results of the calculation are used the basis for making Inspection Account (BAP) of logs. f. In the case of results of inspection in BAP show ing: a. no difference in kind of logs and calculation of volume < 5%, the log portion is declared true and P2SKSHH can issue SKSHH after signing DHH first; b. no difference in kinds of logs but calculation of volume > 5%, all stalks in the log portion must be re-measured wholly by log owner; c. After completing the re-measuring of the log portion as meant in point 2), P2SKSHH subse quently re-inspects by procedures in accordance with the provisions until the inspection result is declared true; d. To log portions already inspected and declared true as meant in point 3), new DHH must be made and P2SKSHH subsequently issues SKSHH. Technique of inspection of sawn timber: a. Examining kind and size by taking sample randomly and representing every sort and kind with the pro vision as follows: 1) Portion 1 - 35 pieces, sample is 100% 2) Portion 36 - 500 pieces, sample is 35 pieces; 3) Portion 501 -1,000 pieces, sample is 60 pieces; 4) Portion 1,001 - 2,000 pieces, sample 80 pieces; 23A 5) Portion 2,001 - 3,000 pieces, sample is 125. pieces; 6) Portion more than 3,000 pieces, sample is 5%. Business News 7284/11-11-2005 b. Tolerance of difference in size permitted in the in spection is as follows: 1) Standard thickness < 3 cm, tolerance< 3 mm 2) Standard thickness> 3 cm, tolerance< 6 mm 3) Standard width < 8 cm, tolerance< 3 mm 4) Standard width > 8 cm, tolerance< 3 mm 5) Standard length < 1 m, tolerance < 25 mm 6) Standard thickness > 1 m, tolerance < 50 mm c. Results of the measuring are subsequently included into Sawn Timber Inspection List (DPKG). d. In the case of on the basis of inspection of the sample portion, the excess of size not exceeding the permitted tolerance, physical dimension of the timber is categorized passing test, namely the thick ness and length have no· less or fit timber, while the width is permitted to have fit and less timber ( < 5 mm), as long as the number of pieces is only < 10% of the total samples of sawn timber. e. In the quantity of sawn timber passing test makes up 90% of the total samples or more, the submit ted DHH is declared true. f. Based on the inspection, Inspection Account (BAP) of sawn timber is subsequently made. g. In the case of output being found above the toler able limit as meant in letter b on the basis of the inspection, owner/recipient of the processed tim ber is obliged to measure 100%. h. After the measuring of the timber portion as meant in letter g is completed, P2SKSHH later undertakes re-inspection by procedures in accordance with the provisions until the inspection result is declared true; i. To timber portion already inspected and declared true as meant in letter h, new DHH must be made and P2SKSHH later issues SKSHH. j. The used inspection-tools include metering tape, pulling period, knife and loup. Technique of inspection of plywood: a. Examining kind and size by taking sample randomly and representing every sort and kin, with the pro vision as follows: 1) Portion 1 - 35 pieces, sample is 100% 2) Portion 36 - 500 pieces, sample is 35 pieces; 3) Portion 501 -· 1,000 pieces, sample is 60 pieces; 4) Portion 1,001 - 2,000 pieces, sample 80 pieces; 5) Portion ... . 5) Portion 2,001 - 3,000 pieces, sample is 125 pieces; b. Tolerance of difference in size permitted in the in spection is as follows: 1) Length and width, tolerance 0.00 mm and + 1.50 mm. 2) Thickness for size > 3 cm, tolerance ± 6 mm 3) Thickness for size 3 cm - < 6 mm, tolerance ± 0.20 mm 4) Thickness for size 6 mm - < 12 mm, tolerance ± 0.30 mm 5) Thickness for size 12 mm - < 20 mm, tolerance ± 0.40 mm 6) Thickness for size > 20 cm, tolerance ± a.so mm c. The inspection result is later included into a Ply wood Inspection List (DPKL). d. In the case of on the basis of result of inspection of sample, deviation remaining in the permitted tolerable limit, dimension/size of the plywood is categorized passing test. e. If the quantity of plywood passing test as meant in letter d makes up 90% of the total samples or more, the submitted DHH is declared true. f. Based on the inspection result, Inspection Account (BAP) of Plywood is subsequently made. g. In the case of output being found above the toler able limit as meant in letter b on the basis of the inspection, owner/recipient of the plywood is obliged to measure 100%. h. After the measuring of the timber portion as meant in letter g is completed, P2SKSHH later undertakes re-inspection by procedures in accordance with the provisions until the inspection result is declared true; i. To timber portion already inspected and declared true as meant in letter h, new DHH must be made and P2SKSHH later issues SKSHH. j. The used inspection-tools include metering tape, pulling period, knife and loup. Technique of inspection of rattan: a. counting the number of bundle/stalk; b. examining kind of rattan; c. weighing with sample 5%; d. Result of physical inspection of ra~an as meant in point c is included into SAP. Business News 7284/11-11-2005 24A e. If the results are deemed already suitable to the submitted DHH on the basis of the physical inspec tion, SKSHH can be issued promptly. Article 4 Paragraph (1) The name of Levy on Inspection of Forest-Prod uct Measuring and Verification is abbreviated to Levy on P3HH. Paragraphs (2) and (3) Sufficiently clear Article 5 Paragraph (1) The tariff of inspection of forest-product measuring and verification is not differentiated by kind of tim ber. Rattan stipulated as levy object is rattan in the form of raw material, such as mixed rattan whether or not smoked or polished. Paragraph (2) Sufficiently clear Article 6 Sufficiently clear Article 7 Paragraph (1) Operational costs are incentives given to offic ers inspecting the measuring and verification of forest products in accordance with the provisions of legisla tion in force. Paragraph (2) Working areas of forest-product inspection be coming authority of the East Java Provincial Govern ment are in accordance with stipulation in Regional Regu lation of the East Java Province No. 26/2001 on De scription of Tasks and Functions of Technical Executive Units of the East Java Provincial Forestry Service. Article 8 up to article 13 Sufficiently clear ===(R)===