Regulation of the Minister No. P.61/Menhut-II/2008 concerning provisions and procedures for the granting of Business Permit for the Utilization of Products of Wood Forest Ecosystem Restoration in Natural Production Forests through application

lA PROVISIONS AND PROCEDURES FOR THE GRANTING OF BUSINESS PERMIT FOR THE UTIUZATION OF PRODUCTS OF WOOD FOREST ECOSYSTEM RESTORATION IN NATURAL PRODUCTION FORESTS THRU APPLICATION (Regulation of the Minister No. P. 61/Meohut-lIj200B, dated October 28, 2008) ~ THE BLESSING OFTHE ONE AND ONLY GOD, TIiE MINISTER OFFORESTRY, COnsidering : a. that based on Article 35 paragraph (3), Article 36para graph (5), ArtIde 62, and Artide 68 of Government Reguli:lltion No. Gyear 2007 jo. No.3 year 2008 con cerning Forestry andthe Compilation of Forest Man agement Plan andtheUtilizal:iOn c:I Fore!ot, It isInslnK:I:ed that business permits onthe utilizationof products of Wood ForestEcosystem Restoration InNatural Produc tionForests shan be granted thru application, andregu latedwitha regulation of the Minister; b. that ba5ed on the above item, it is necessary to stipu Late a regu"rtion oftheMinister of Forestry concerning Provisions andProcedure onthe Granting of Business Permit on the Utilization of Products of Wood Forest Eoosysten Resbxation inNatural Production Forests thl\l applications; In VieW or: 1. LawNo.5 year 1990 concerning Conservation ofNatu ralBKJIoglcal Resources and itsEcosystem (Statute Book. Year 1990No. 49;Supplement tostatuteBook No. 3419); Business News 7831/7-3-2009 2. Law No. 41 year 1999 (BN No. 6412pages 1A~ 6A andso on) concerning Forestry (Statute Book Year 1999No. 167,Supplementto StatuteBookNo. 3888) as amended bV law No. 19 year 2004 (BN No. 7~43pages 26A~29A)concernIng Stipula tion of Govemment Regulation in lieu of law No. 1 year 2004 concerning Amendment to law No. 11 year 1999 concerning Forestry to become a law (Statute BookYear 2004No.86, Supplement to Stat Lite BookNo. 4412}i 3. LawNo. 32year 2004(BNNo. 7183pagesU~lL4 andsoon)oonceming the Regional Goverrvnent (Stat ute BookYear 2004 Ntt. 125, Supplement to statute Book No. 4437) as amended by Law No. 8 year 2005 ooncemlng stipulation ofGt:Nemment Regulation inlieu of Law No. 3 year 2005 (BN No. 721,8pages 2DA 21A)concerning Amendment to law No.32year2004 ronc:eming the Regional Government1D becomea Law (Statute BookYear 2005 No. 108,SUpplement to stat uteBook No. 4548); '1. Low No. 2S year 2007 (BN No 7$09 /NI9OS :lZA 27A) concerning Capital Investment (Statute Book Year2007 No. 67; Supplement to Statute BookNo. 4724); 5. Govemment•..• ! • 2A 5. Government Regulation No. 27year 1999 (BNNo. 6442 /kI!Je510A~.lZAilnrlSO on) concernlaq Analysis or Environmental Impacts (Statute BookYear1999 No. 59.Supplement to Statute BookNo. 3838); 6. Government Regulation No. 44 year 2004 concerning Forestry Planning (Statute BookYear2004 No. 146, Supplement to statute Book. No.4452); 7. Government Regulation No.45 year 2004 concerning forest Protection (Statute Book Year Z004 No. lzJ7, Supplement to statute BookNo.4453); 8. Government Regulation No.6 year 2007 (BNNo. 7529 pages .lA-21A andso on)conceming Forestry and Compilation ofForestManagement Pian and the utili zationd Forest (Statute BookYear 2007No.~ Supple ment to R.I.Statute BookNo. 4696) asamended by Government RegUlation No. 3 year 2008 (R.I. Statute BookYear2008 No. 16, Supplement to R.I. Statute Book No. 48140); 9. Government Regulation No.38 year 2007 concerning the Division of GovemmentAffairsbetweenthe Gov ernment,. PrtwindaI Regiclnal Government;, and~/ CityRegional Government (statute Book. Year 2007No. 82, Supplement to Statute Book No.473/); 10. Presidential Decree of the Republic of Indonesia No. 187jM year 2004 (lIN NIt. 7128pages 3DA~3.1AJ concerning the Fonnation of IndonesiaUnited cabi net, as amended several times lastly by Presidential Decree No.31/P year 2007; 11. PresidentiaJ Regulation of the Republic of Indonesia No.9 year 2005 (BNNo. 7tSZpages2A~23A)con cerning Position, Mission, Functions, Organization Structure and Work M~hanlsmof stat!:! Ministries of Business News 783117-3-2009 the Republic of Indonesia,asamendedseveral times lastlyby Presldenual Regulatlon NO. 20year ZOO8; 12. Presidential Regulation of the Republic of Indonesia No. 10 year 2005 ooncemlngEchelon - I Organization UnitsandMissions of State Ministries of the Republic r:llndonesia as amendedseveral times lastlyby Presi: dential Regulation No. 50 year 2008; 13. Decree of the Ministerof forestry and farming Estate No. 602/Kpl5~ll/199810. No. 6221Kpts-ll/1999 CIXlCem ingAnalysis of Environmental Impactsof Forestry De veIoI:ment. Environmental Management Efforts and En vironmental Monitoring Efforts on Forestry Develop ment; 14. Regulation f:l the Minister of Forestry No. P.13/Menhut 11/2005concerning Organization andWork Mechanism of the Departmt:nt of Foreolry as dITTeflded several times lastly by P.15/Menhut~II/2008; 15. Regulation of the Minister of Forestry No. P.20/Menhut 11/2007 jo, P.l2/Menhut-U/2008 concerning ProcEdure on theGranting or Business Permiton theutilization of Wood ForestProducts in Natural Production Forests Thru App'ication; DECIDES: To stipulate : ntE REGULATION OFTHE MINISTER OF FORESTRY CON CERNING PROVISIONS AND PROCEDURE ON THE GRANT ING OF BUSINESS PERMIT ON THE UTIUZA110N OF PRODUCTS OF WOOD FOREST ECOSYSTEM REsroRA~ nON INNAllJRAL PRODUCTION FORESTSTHRU APPU CATION. CHAPTER I •.... OiAPTERI GENERAL PROVISIONS Article1 In this Regulation, what is meant by : 1. Production forestzone is acertain area designated and! or stipulated by theGovernmentto bemaintained asof ItSexJstel"ll:e aspennanent fOreSt haVing its main func tion to produce forestproducts. 2. A non-productive productiDn fnre§t Is a forE";! bf:!ing reserved I designated by the Minister to be directed as locationfor the restorationof the ecosystem and/ or location for the development ·of vegetation for est. 3. Business Permitonthe utilizationof Products of Wood Forest Ecosystem Restoration in Natural Production FhrPst, hpreinaftpr retl>tted tn as: nJPHHK-RE is:a<; «et forth inArticle 1 number 14of Government Regulation No.6 year2007 jo, Government Regulation No.3 year 2008. 4. Restutaoon oftheecosvsrem Isaneffort to restore bo logical elements (flora and fauna) and non-biological elements (ground andwater) in anareawith the origi nal types, In order to achieve a balance between bio logical resources and Itsecosystem. 5. Minister is the Ministerprovided with the mission and responsibility in the aspects of Forestry. 6. DirectorGeneral isthe DirectorGeneral provided with the mission andre5JX)nsiblllty in theaspects Offorestry Production Management. 7. Provindal Service is the Service provided with the mis sion andresponsibility in theaspects of foresby withIn a Province area. Business News 7831/7-3-2009 3A 8. Regency/City service is the SelVice provided with the mission andresponsibility in the fieldof forestJy within a Regency/City area. QiAPTERn AREA AND APPliCATION PartOne Area Article2 (1) IUPHHK-RE maybe applied on areas that are: a. withinoneforestzone unity; b. notbeing encumbered with other 1~PP.fmih;;anrl c. prlOrit'lZed in non-productive production forests. (2) The reservation/designation of the area rererred to in paragraph (1) shall bewith a Minister Decision. PartTWD Applicant Article 3 (1) Parties entitfedtoapplyfor IUPHHK-RE are: a. IndMduals; b. Cooperativas; c. State~Owned Enterprises (BUMN) or Regional ad ministration"OWned Enterprises (BUMD); d. Indonesian Private Business Entities (PT, 01, FiIl11a). (2) Capital ownership of the applicant referredto in para graph (1) shall be in accordance with prevailing Icgl~­ lations. Partlhree Application ReqUirements Artidc4 ReqUirements for the applJcatlon of IUPHHK-RE consist of: a. Copy ..... a. COpy of Deed of Establishment of BUMS Intheform of PT, CII, or Rnn with Its amendments, prioritized for those perfonning business in the fieldof forestJy/fann ing/plantation; b. Business Pennit Letter from the agency having the authority; c. Taxpayer COde Number (NPWP); d. Bank Reference statingthat the applicant isa respon sible cus::tcmer; e. Statement of readiness to open brandt officesin the Province and/or Regency/City; f. Location plan of therequested pIaa!made by theAp plkantattached with sateJlitelmagerymapWith amJni mum resclution asof 30 (thirty) meters, from aclear source, cornpJetewith a 1 :100.000 scale map;and g. TcchniQ)) propcx:al containing among others: 1) general condition of the areaandcompany condi tion; 2) technical proposal containing purpose and objec~ We, planning on the restoration of theecosystem andutilization after the achievement of a balance of the ecosystem, silvi-culture system to be ex ploited, organization/administration, funding/cash flow, andforestprotection. Artide 5 (1) Theapplication shall be submitted to theMinister with copies to the: a. Director General; 1.1. Heotn.l of ForeWy Planning Doeird; c. Governor; d. Head of Provincial service; Business News 7831/7~3-2009 4A e. Head of Regency/City service;and f. Forest ZOneStabiliution Board whose work.area is in the re'atedProvince. (2) The application referredto in paragraph (1) shall be attached with the requirements meantinArticle 4. PartFour Evaluab'on ofApplication Article 6 (1) The DIrectorate Generalof Forestry Production Man~ agement chE.dsthe completeness of the requirements referred to in Artide 4 within 10(ten) workdaysfrom the receipt of the application. (2) If theapplication didnotmeetthecompleteness ofthe requirements referred to in Article 4, the Director Gen eral on behalf of the Minister shall issue arejectlon 'etter. (3) If the apPlication meetsthecompleteness of the re quirements referred to in Artide 4, the DirectorGen eral shallaskfor confirmation on the requested area on forest functions, forest utilizationpermitsand use of forest zone/land allotment for other sectors, land closing, fartlst zone borders to the Head of Fore5by Planning Board• (4) The Head of Forestry P'anning Board shaH pnMde a confirmation of the area referred to in paragraph (3) to theDirectorGeneral in the fum ofmapof thework areato be used. wfthin30 (thirty) workdaysfrom the receipt of tt1e request for confirmation. (5) AIrer rec:eMng the ecnfirmation from the Forestry Plan ning Boani, theDirectorGeneraJ shaIJ evaluate the teen nicaJ proposalwithin a per10d of 12 (twelve) workdays. Artide 7. ! •••• Article 7 (1) The evaluation referred to in Article6 paragraph (5), shall beperformed by a TechnkaJ ProposalEvaluation Team for BU~lness on the Uttliution of Wood F=orest Products In Natural Production Forests. (2) Result of theevaluation of theTeam shall be submit ted to the D1rec1or Genera\ ac:eon lpanted With a rec ommendatlon. (3) Based onthe resultof the evaluation d theTeamre ferred to in paragraph (2), the Director General shall report It to the Minister acoompanled with technical considerations. (4) Based onthe reportof the DirectorGenetaJ referredttl in paragraph (3), theMinistercaneitheraccept or re ject theappllcatlon. Artide 8 (1) If the Minister rejects the applk:at:ion, the Dindor Gen eral on behalfof the Ministershalltssue a rejection letter. (2) If the Minister accepts the appncation, the Director General shall prepare adraftof the Minister's letterto the applicant to compile and submit an Analysis on Etwironmentallmpacts(AMDA.) Of ElW\rorn'nent Man agement efforts (Ul<l) and Environment Monitoring Efforts (UPl) inaa:ordance withprevailing Iegisfations. Artide9 (1)If the areais requested by more thanoneapplicant, the applicantwholh1Iya;mpfete::Jthe requirements meant in Artide 4shall be processed, whereas theotherappli cants shall be re,Jetted by Ule Director Genernl. Business News 7831/7-3-2009 SA (2) In the eventanarea is requested by mortthan one applicant simultaneously within five(5) daysfrom the entryof the first application, andallmeetthe require ments meant in Article 4, the Director GernN'a1 !>hall request for confirmation just onceon the areato be usedthatare requested by the appIjcants, to the Head ofForestJy Planning Board. Artide 10 (1) Applications received simultaneously asmeant in Ar tide 9 paragraph (2), and all meet the requiJ'E'men~ referred to in Articte 4, shall be evaluated as of Its teehnJeal proposalbya team. (2) The team shalf submit the evaluation result referred to in paragraph (1) to the Director Geneial accompa rUed with thescoreof the evaluation restlit of the re spective applicants. (3) The Director Generalshall deliver the CMlIluation rt;!SU1t asregulated inArtide 7 paragraph (3) aM paragraph (4), and Artide 8. Article 11 (i) If the applicantdid notdeliveranAnalySis onEnviron meI\ta\Impacts (A.MDAL) or EtNi.ronmentManagement Efforts (UKL) and Environment Monitoring Effort:s (UPl) asmeant in Artide 8 within a periodof 150calendar days, the Ministershall cancel the candidate for the permithoJder after theDirector GeneraJ issued wam~ ingsfor three (3) timeseach with 30(thirty) calendar days Interval. (2) AMDAL or UKl and UPL having received approval or legalization from the officiol having the authority, :;holl then ..... thenbesubmittedby theappfJCDJlt to the Minister thru Ute Director Genernl. Article 12 (1) Basedonthesubmitted AMDAlor UK\..andUPl meant in AI1ide 11 paragraph (2), the Ministershallinstruct the Head' of forestrY Planning Board lD preparea map ofthe workarea/WAof theIUPHHK-RE, and submit its result to l:tIe DIrector GeneTaJ. {2} BasedontheIUPHtlK-RE workareajWA map asmeant in paragraph(1), the Director General preparesa draft of the Minister's decision concerning the provision of IUPHHK~within a period of seven (7) work days at the latest,andsubmits it to the Minister thru the Sec retaryGenerat 0(the Departmentof Forestry, (3) Based on the draftott:he MInister oectsJon rererreo to in paragraph (2), the secretary General shall study legal~within a pMod of not: more thanfive (5) workdays from the date the draft. wasreceived, and shan submit its resu\t to theMinister. (4) Based onthe draft referred to in paragraph (3), the Minister shah issue a Decision concerning the Provi sionofIUPHHK-RE. (1) The OiredorGeneral issues Rebibutian SPP (SPP-Iuran) IUPHHK-RE inaccordance with provisions ofprevailing legislations. (2) If the permit holderdid not settle the Forestry retribu tion within the specified period, the proviSion or the IUPHHK-RE meant in Artide 12 paragraph (4) shall be cancelled by the Minister.. Business News 7831/1-3-2009 6A Article14 (1) Delivery of the Docislon Letter by the Director General can be made by post after the person concerned had paid incash the indebtedIUPH.HK.-RE retnbution meant inArticle 13 paragraph (1). (2) Thepermft:hotdershall reportthe~ofthe IU?HHK Rt Decision letter to the Director General. Artide 15 Holders of IUPHHK-REareobligated b> fuIffiI flnan· ciat obligations. both in thefield of fofestry andnon-for estJy in tlCX.Ordanc:e with prevailing legislation3'. Article 16 IUPHHK-RE maynot be transferred to other par tiesWithout the approval of the Minister Of Forestry. PartFive Term of IUP'rlHK-RE Artide 17 (1) IUPHHK-REtenncan begranlaifora peiodof60{sixty} years and~bIc justonce for a period of35 (thirty five) years. (2) IUPHHK-RE shall be evaluated each five (5) years by the Minister asbasis for permitoonlinulty. (3) Theevaluation referred to in paragraph (2) shaU be bet.,oo on technical dJrectiveS stipulated by the Dircd:or General. QiAPTfRID OTHER PROVISIONS Artide 16 (1) If restoration activities on the ecosystem in Natural Forests hadnot yet achieved biologkal equilibrium, Private . . , . , Private Owned Business Entities (BUMS» holding IUPHHK-RE may be given IUPK, IUPJL, orIUPHHBK. (2) If restoration activities on the ecosystem In Natural Forests had achieved biological equilibrium, the BUMS holding IUPHHK-RE maybegranteda Business Permit on the Utilization of Wood Forest Products (IUPHHK) furu the implementation of one or more silvkulture system. (3) FtJtherprovisions on IUPK, RJPJl, IUPHHK, orlUPHHBK as referred to inparagraph(1) shallbe regulated ina separate regulation ofthe Minisb;::r: OiAPTERN TRANSITIONAL PROVISIONS Artide 19 (1) Production forest areasthat had beenreserved/desig Rated as location forthe restoration of the ecosystem bef'are the stipulation of this Regulation is dcdared as still effective.• (2)~ forIUPHHK-RE ontheforest areas referred to in paragraph (1), shallbe processed based on this Regulation. CHAPTER V Ci...OSING PROVISIONS Artide 20 With the stiDulation of this Regulation, RegWation of the Minister of Forestry No. SK.159j Menhut-U/2004 conc:eming Restoration of the Ecosystem in Production forest:ZDnesand RJ. Foresby Minister Regu\ation No. P.l8/ Menhut-II/2004 concerning Criteria ofProduction Forests mat <:an eeGIanteO W1ItJ eusJness Permiton~ Ulitlzatiun Business News7831/7-3-2009 7A of Wood Forest Products inNaturalForests tnruiAct\vities OfEcosystem Restoration isdedaredasnat in effect any more. Artide21 This Forestry Minister RegUlation commences to COOle toeffectfrom the date of stipulation. FerpubIJc rognizance, this Forestry Minister Regu lation shall beannounced In the State Gazette of the Re publicof Indonesia. StipuJated InJakarta OnOctober 28, 2008 TI-tE MlNlSTER OFFORESTRY, ~. H.M. S.KABAN Enacted InJakarta on October 31,2008 TliE MINISTER OF LAW AND HUMAN RIGHTS OFTHE~~COFlliO~ sgd. AND! MATIALAlTA STATE GAZETTE OFlHE REPUBLlC OFINDONESIA YEAR 2008NO.: 68 ~-{D)-~