Regulation of the Minister of Forestry No. P.4/Menhut-II/2009 concerning completion of temporary right to exploitation of vegetated forest industry

19A COMPLETION OF TEMPORARY RIGHT TO EXPLOITATION vEGETATED FOREST INDUSTRY (Regulation of the Minister of Forestry Number P.4/Menhut-II/2009, dated January 27, 2009) WITH11iEBLESSING OF11iE ONE AND ONLY GOD MINISTER OF FORESTRY, COnsidering: a. that based on Decision of the Minister of Rnance Num ber 228/Kpts- II/1990 concerning Procedure and Re quirements for Rightto Exploitation of Vegetated for est Industry that constitutes implementing regulation of Government Regulation Number 7 Year 1990, within the period of Year 1992up to Year 1994several Deci sions of the Minister of Forestry onGrantof Temporary Rightto Exploitation of Vegetated Forest Industryhave been issued; b. that the holder of Temporary Right to Exploita tion of Vegetated Forest Industry referred to in point b, has established joint venture com pany; Business News 7875-7876/10-28-2009 c. that with theexisting amendment to Govemment Regu lation Number7 Year1990,and lately underGovern ment Regulation Number6 Year 2007 in conjunction with Number 3 Year 2008and its implementing regula tion, therefore inthe contextof providing legalsecurity, assurance to run business for the holder of Temporary Rightto Exploitation ofVegetated Forest Industry (HPHTI 5) andloanrepaymentofReforestation Fund (DR), it is necessary to stipulate Regulation of the Minister of for estry concerning COmpletion ofTemporary Right to Ex ploitationof Vegetated Forest Industry; In viewof: 1. Law Number 41Year 1999(BN No. 6412pageslA 6A andso I'orth) concerning Forestry (SB ofR.I.Year 1999Number 167, Supplement to Statute Book Num ber 3888)asamended by LawNumber19Year 2004 (BN ..... (BN No. 7143pages26.4-29A)conceming Stipula tion of Government Regulation InLieu of law Number 1 Year 2004concemlng Amendment to law Number 41 Year 1999conceming Forestry to law (SB of R.I. Year 2004Number86, SSB Number 4412); 2. Govemment Regulation Number 27Year 1999 (BNNo. 6442 pages 10A-12A and so forth) concerning Analysis onEnvironmental Impact(SB of R.I.Year 1999 Number59, SSB of R.I. Number3838); 3. Government Regulation Number 35Year 2002 (BNNo. 6838 pages 2A-10A) In conjunction with Number 58 Year 2007 concerning Reforestation Fund (SB of R.I. Year 2002Number67, SSB of R.I. Number4i07 danSB of R.I. Year 2007 Number 131, SSB of R.I.Num ber4776); 4. Govemment Regulation Number44Year 2004 concern Ing Forestry Planning (SB of R.I. Year 2004 Number 146,SSB of R.I. Number 4452); 5. Govemment Regulation Number45Year 2004 concem ing Forest Protection (SB of R.I. Year 2004 Number 147, SSB of R.I. Number 4453); 6. Government Regulation Number 6 Year 2007 (BNNo. 7529pages lA-2lA andso fotth}concerning For estSystem andCompilation of Forest Managementand Forest Utilization (SB of R.I. Year 2007 Number 22, SSB of R.I.Number 4696) asamended by Government Regulation Number3 Year 2008 (SB of R.I. Year 2008 Number16,SSB of R.I. Number48140); 7. Decree of the President of the Republic of Indo nesia Number 187/M Year 2004 (BN No. 7128 pages 30A-31A) concerning Establishment of Indonesia Bersatu Cabinet as amended several Business News 7875-7876/10-28-2009 20A times and lately amended by Number 31/P Year 2007; 8. Regulation of the President of the Republic of Indone sia Number9 Year2005 (BN No. 7182pages 2A 23Aandsoforth)concerning capacity, Duty, Func tion, Organizational StructureandWorkProcedure of the State of the Republic of Indonesia as amended several times and latelyamended by Number 20Year 2008; 9. Regulation of the President of the Republic of Indone siaNumber10Year2005 (BNNo. 7220pages88 12Bandsoforth)concerning Organizational unitand Dutyof Echelon I of the StateMinistryof the Stateof the Republic of Indonesia,asamended several times andlatelyamended by Number50Year 2008; 10. Joint Decision of the Ministerof Forestry andMinister of Finance Number 446/Kpts-II/l994 andNumber 533/ KMK.017/1994 concerning Provisions for capital Par ticipation by the Stateof the Republic of Indonesia and loan Originating from Reforestation Fund for Develop mentof Vegetated Forest Indsutry, 11.Decision of the Ministerof Forestry Number 375/Kpts II/1996 inconjunction with Number 098/Kpts-II/1998 concerning Procedure for Distribution of Reforestation Fund inthe contextof capitalPartidpation by the State of the Republic of Indonesia and Loan for Develop mentof Vegetated Forest byJointOpera!iOn Company; 12. Decision of the Minister of Forestry Number 4896/Kpts II/2002 (BNNo. 6811pages3A-5A) in conjunction with Number 8679/Kpts-II!2002 (BN No. 6842 page28) concerning Treatment of JointI-fT1 Company andBUMN tfTli 13. Decision .••.• 13. Decision of the Minister of Forestry Number SK.46/ Menhut-II/2004 (BNNo. 7043pages3A-4A) con cerningIncreaseof Privatecapital Participationin Com pany holding Business Licensefor Utilization of Wood Forest Producein Vegetated Forest / Right to Exploit Joint Industry of Vegetated Forest; 14. Regulation of the Minister of Forestry Number P.13/ Menhut-IT/2005 concerning Organization and WOi'K Pr0 cedureof the Department of Forestryasamended &!V eral timesand latelyamendedby NumberP.64/Menhut IT/2008; oECI 0 ES: To stipulate: REGULATION OFTHEMINISTER OFFORESTRY CONCERN ING COMPLETION OF TEMPORARY RIGHTTO EXPLOIT VEGETATION FOREST INDUSTRY. Vegetation Article 1 What is meant in this Regulation by: 1. TempoaryRight to Exploit Vegetation Forest Industry hereinafter referred to asHPHTI-S shaH be right granted to private company as holder of the Right to Exploit Forest (HPH)assign to develop vegetation Forest In dustry with Transmigration Patterri. 2. BusinessLicensefor Utilization of Wood Forest Pro duce (IUPHHK) in Vegetation Producing Forest here Inafter referred to as IUPHHK-HTI which previously called Right to Exploit Vegetation Forest (HPHT) or Right to Expl9it Vegetation Forest Industry (HPHTI) or Business License for Utilization of Wood Forest Business News7875-7876/10-28-2009 21A Produce (IUPHHK-HT) shall be business license to de velop Vegetation Forest in prodUcing forest established by industrial group for improvement of producingfor est quality in the context of fulfilling the needsfor in dustrial basic material. 3. Joint Venture Company shall be company established by means of cooperation between companyas holder of HPH and State-owned Forestry Business Entity (BUMN) (PT. Inhutani I sid V) in the context of devel oping Vegetation Forest Industri (Hll). 4. Distributing bank shanbe Government Bankacting for and on behalf of the Government namely Minister of Forestry in distributing Government capital Participa tion (PMP)and loan of Reforestation Fund(DR) to de veiopHTI. 5. Divestment shall be release or sale of shares belong ing to BUMN in Joint Venture Hll company. 6. Minister shall be Minister assigned the duty and re sponsibility in Forestry matter. 7. Direktor Generalshall be Director General assigned the duty and responsibility in Forestry ProduceManage ment 8. Governor shall be Governor of Province. 9. PrcNincial5erviceOffice assignedthe duty and respon sibility in Forestry in provincial areas. 10. 5ervice Office of the Region shall be 5ervice Office assignedthe duty and responsibility in Forestry of re gency. Article 2 Completion of HPHll-S to be IUPHHK-Hll shaH be conducted based on the procedure and requirments be low. 1. Director ..... 1. DirectorGeneral on behalfof the Ministershll request the JointVenture company to submit: a. Statementof Commitment to continue the devel opmentactivityof HTI registeredat the Notary, as referredto in Attachmentto this Regulat\Of1 of the Ministerof Forestry. b. Governor's recommendation. c. Analysis of Environmental Impact (AMDAl)or Envi ronmental Management Effort(UKL)andEnviron mentalMonitoring Effort (UPL) that haveobtained approval or ratification from the competent:authority in accordance with the regulations. d. Evidence of completion of Contribution for Rightto ExploItation of Vegetation ForestIndustry(IHPHTI). 2. If the joint venture company has complied with the requirements referredto in point 1, the Ministershall instruct the DirectorGeneral of Forestry Planology to prepare map of working area and submit the result thereof to the DirectorGeneral. 3. If the joint venture company has complied with the requirements referred to in point 1, letters a, band c, but notyet settle the IHPHTI since noInstruction letter for Payment of IUPHHK-HTI is issued yet, the Director General on behalfof the Ministershall issue Instruc tion Letter for Payment of IUPHHK-HTI contribution based on the tariff prevailing then. 4. Withthe fullcompliance with the requirements referred to in points2 and 3, the Ministershall issue Decision on IUPHHK-HTI to thejoint venture. Article3 (1) Ifthejointcompany fails to comply withthe requirements Business News 7875-7876/10-28-2009 referred to in ArtIcle 2 points 1 and 3 within six (6) months after the requestletter andInstruction Letter for Payment of IUPHHK-HTI Contribution are issued, the Minister shallrevoke the IUPHHK-HTI andthe joint venture companyshall beobligedto complywith the financial obligationnot fulfilledyet (2) Byrevoking the HPHTI-S referred to in paragraph (1~, all immovablegoods shall become the State's prop erty without loss compensation, exceptall the plants that have been planted on the wort< area shall become the licence holder'sasset. (3) Failure to fell down/utilizethe vegetation referred to in paragraph (2) within one (1) yearasof revocation of the HPHTI-S thereof bythe holderof license shall be comethe Statepropertywithout loss compensation. (4) If the vegetation referred to in paragraph (3) are encumbered as loan guarantee for DRto the Gov ernment through the distributing bank (chanelllng banks), the Minister shall request the bankto settle the joint venture company's obligationsthat are still unfulfilled. (5) Theformer HPHTI-S are referredto in paragraph (1), maybe allocated for HTI development by submitting application asgovemed Inthe prevailing statutory regu lationafter the process referredto in paragraph (4) Is completed. Article 4 If the joint venture company fails to continue the development activityon the Vegetation Forest Industryas referred to in Article 2 point 1, the Minister shall issue Decision onthe Revocation of Decision on HPHTI-S. Article5...." .."" andAuctlon services Office(I<PKNl). Article6 If thejoint venture company obtained approval for divestment from the Ministerandrealized it in accordance with the prevailing statutory regulation, the Ministershall isse Decision on IUPHHK-HTI to privateshareholder. Article7 This Regulation of the Minister of Forestry shall takeeffecton the date it is stipulated. Forpubliccognizance, this Regulation of the Min ister of Forestry shall be announced by pladng it in the StateGazette of the Stateof the Republic of Indonesia. Stipulated in Jakarta OnJanuary 27,2009 MINISfEROFFORESTRY, Sgd. H. M.S. KABAN Enacted in Jakarta OnJanuary30, 2009 MINISfEROF LAW AND HUMAN RIGHTS OFTHE REPUBUC OFINDONESIA Sgd. AND! MATTAlATTA STATE GAZETTE OFTHE REPUBUC OF INDONESIA YEAR 2009 NUMBER 12 Business News 7875-7876/10-28-2009 23A STATEMENT l.£TTER Number: Onthis day, ..... dated ..... (.....) month .... year .... (....), the undersigned : Name . Title : President Director1Director of JointVen ture Company having the right to exploitation of Vegeta tion Forest Industry between PT. and PT. ~ ~, herebyundertakes and is willing to continue the development ofYegelation Forest Industrygrantedunder Dedsion of the Minister ofForestry Number , dated ~. concerning , in accordance with the prevailing statutory regulation. ThisStatement letter issolemnly madewithoutduress by anyparty. Theperson issuingthis Statement, (Name) President DirectorIDirector of PT. Registered at --', Notaryin Head of Law and Organization Bureau sgd. SUpamo,SH NIP. 19500514 198303 1 001 MINISfEROFf(jRESTRY, sgd. H.M.S. KABAN (MA)--~---