Regulation of the Minister of Forestry No. P.7/Menhut-II/2009 concerning guidelines for compliance with wood basic material for local need

lOA . GUIDELINE FOR COMPLIANCE WITH WOOD BASIC MATERIAL FOR LOCAL NEED (Regulation of the Minister Forestry Number P. 7/Menhut-II/2009, dated February 9, 2009) WITH THE BLESSING OFTHE ONE AND ONLYGOD MINIS rtR OF t-OK.tSTRY; Considering: a. that the need for local wood is in bIg demand by the community th rough the Regent/Mayor or DPRLJ of K.e gency/Munlcipality and is needed in anticipating the in creasing need for wood for individual and for control ling natural disaster occurring in Regency/Municipality; b. that with respect to the above matter it is deemed nec essary to fulfill the need for local wood in the Regency/ Municipality under Regulation of the Minister Forestry. In view of: 1. Law Number 23 Year1997 (BN No. 6092peqes19A 21A and so forth) COnCE> ning Living Environment Management (5B of R.I. Year 2007 Number 68; SSB of a.t. Number 3699); 2. Law Number 41 Year 1999 (BN No. 6412pageslA 6A andsotortn} concerning Forestry (SB of R.I. Year 1999 Number 167, SSBNumber 3888) as amended by Law Number 19 Year2004 (BN No. 7143pages 26A 29A) concerning Stipulation of Government Regula tion in Lieu of Law Number 1 Year 2004 concerning Amendment to Law Number 41 Year 1999 concerning Forestry to Law (SB of R.I. Year 2004 Number 86, SSB Number4412); 3. Law Number 18 Year2001 (BN No. 6718pages 18A 21A andso forth) concerning Special Autonomy for Aceh Special Provincial Region as Nanggroe Aceh Business News 7878-7879/11-4-2009 Darussalam Province (SB of R.I. Year 2001 Number 114, SSB Number 4134); 4. Law Number 21 Year2001 (BN No. 6728pages21A 30A andso 101V7)conCernlng otonorru Khusus bag! Provinsi Papua(SB of R.I. Year 2001 Number 135, 5SB Number 4151); 5. Law Number 32 Year 2004 (BNNo. 7183pages lA llA andso forth) concerning K.egional Government (5B of R.I. Year 2004 Number 125, SSB of R.I. Number 4437) as amended by Law Number 8 Year 2005 con cerning Stipulation of Government Regulation in Lieu of Law Number 3 Year 2005 (BN No. 7218 pages 20A-21A) concerning Amendment to Law Number 32 Year2004 concerning Regional Government to be Law (5B of R.I. Year 2005 Number 108, SSB of R.I. Number 4548); 6. Government Regulation in Lieu of Law of the Republic of Indonesia Number 1 Year2008 (BNNo. 7685pages 20A-30A) concerning Amendment to Law Number 21 vear 2001 concerning Special Autonomy for Papupa Province (5B of R.I. Year 2008 Number 57, SSBof R.I. Number 4842); 7. I:;overnment Regulation Number 35 Year2002 (BN No. 6838pages 2A-1OA)concerning Reforestation Fund (SB of R.I. Year 2002 Number 67, SSBof R.I. Number 4207); 8. Government Regulation Number 44 Year 2004 concerning Forestry Planning (SB of R.I. Year 2004 Number 146, SSB of R.I. Number 4452); 9. Government ...•. llA 9. Government Regulation Number6 Year 2007 (BNNo. 7529pages1A-21A andso forth) concerning For estLayout andCompilation of Forest Management Plan and Forest Utilization (SB of R.I. Year2007 Number 22,ssBof R.I. Number4696) asamended byGovern ment Regulation Number3 Year2008 (BN No. 7676 pages 10A-25A 50 Forth) (SB of R.I. Year 2008 Number16, ssB of R.I. Number48140); 10. Government Regulation Number38Year 2007 concern ing Distributionof Administration Affairs betweenthe Central Government, Provincial Regional Administra tion, andRegional Administrationof Regency/Munici palityYear 2007 Number82, SSB of R.I. Number 4737); 11. Decree of the President of the Republic of Indonesia Number 187/M Year 2004(BNNo. 7128pages30A 31A)concerning Establishment ofIndonesia Bersatu Cabinet, asamended several timesandlatelyamended by Presidential Decree 31/PYear2007; 12. Regulation of the President of the Republic of Indone sia Number9 Year2005 (BN No. 7182pages 2A 23A) concerning Capacity, Function, Orginizational Structure andWorking Procedure of the StateMinistry of the Stateof the Republic of Indonesia,asamended several timesandlatelyamended by Presidential Regu lationNumber20 Year2008; 13. Regu lationof the Presidentof the Republic of Indone sia Number 10 Year2005 concerning Organizational Unit andDuty of Echelon I of the StateMinistryof the Stateof the Republic of Indonesia asamended several timesand lately amended by Presidential Reg ulation NumberSO Year 200Bj 14. Decision of the Minister of Forestry Number SK.3B2/ Menhut-II/2004 conceming Wood Utilization Ucense (IPK); Business News 7878-7879/11-4-2009 15. Regulation of the Minister Forestry Number P.13/ Menhut-II/200S concerning Organization dan Working Procedure of the Department Forestry as amended several times and lately amended by Number P.64/ Menhut-II/2008; 16. Regulation of the Minister Forestry Number P.51/ Menhut-II/2006 concerning Use of Statement Letterof Origin (SKAU) for transportation of wood forest pro duce originating from Forest bearing the Right as amended several times and lately amended by Regu lation of the MinisterForestry NumberP.33/Mehut-II/ 2007j 17. Regulation of the Minister Forestry Number P.SS/ Menhut-II/2006 concerning Administration of Forest Produce Originating from State-controlled Forestas amended byNumberP.63/Mehut-II/2006; 18. Regulation of the Minister Forestry Number P.6/Menhut II/2007 concerning Work Procedure andAnnual Work Procedure for Wood Forest Produce Utilization Busi ness in Natural Forest and Restored Ecosystem in Pro ducingForest asamended by Regulation of the Minis ter Forestry Number PAO/Menhut-II/2007; 19. Regulation of the Minister Forestry Number P.19/ Menhut-II/2007 (BNNo. 7734pages20A-25A)con cerning Procedure for granting License andExpansion of Business Work Area for Wood Forest Produce Utili zation in Vegetation Forest Industry in Produdnq for est, asamended several times and latelyamended by Number P.ll/Menhut-II/2008 (BN No. 771B pages 19A 20A); 20. Regulation of the Minister Forestry Number P.20/ Menhut-II/2007 concerning Procedure for grantof Busi ness License for Wood Forest Produce Utilization in ProdUcing .... 12A Producing Natural Forest as amended several times and lately amended by Number P.12/Menhut-II/2008; 21. Rcqulation of the Ministcr Forestry Number P.23/ Menhut-II/2007 (BNNo. 7791pages12A-19A)a:m ccrninq Procedure for gmnt of Business License for Wood Forest Produce Utilization in the People Vegeta tion Forest as amended several times and latelv amended by Number p.5/Menhut-II/2008; 22. Rcqulatton of the Ministcr Forcstry Number P.18/ Menhut-II/2007 (BNNo. 7756pages20A-29A)con cerning Technical Guideline for Imposition, Collection, and Payment of Forest Resouce commission (PSDH) and Reforestation Fuhd (DR); 23. Regulation of the Minister Forestry Number P.37/ MenhutII/2007 concerning Community Forest; 24. Regulation of the Minister Forestry Number P.62/ Menhut-II/2008 (BN No. 7834 pages 2A-12A) concern ing Work Planfor Wood Forest ProduceUtilization Busi ness in VegetLJtion Forest Industry and People VegetLJ tion Forest (State Gazette of the Republic of Indonesia Year 2008 Number 74). DE CI DES: To stipulate: REGULATION OFTHE MINISTERFORESTRY CONCERNING GUIDEUNE FOR FULALLMENT OFWOODBASICMATERIAL FORlOCAL NEED. CHAPTER I GENERAL PROVISION Article 1 What is meant in this RegUlation by; BusinessNews 7878-7879/11-4-2009 1. Need for local wood shall be business to fulfill supply of lath and/or processedwood needed by the Regency/ Municipality for the need of the community and public. 2. License to collect wood forest produce hereinafter re ferred to as TPHHK shall be license to collect forest produce in the form of wood in producing forest by means of harvesting, transporting, and marketing for a certain period and certain volume. 3. Business license for community forest utilization here inafter referred to as IUPHKm, shall be business li cense granted for utilization offorest resource in pro tected forest zone and/or producing forest zone. 4. License for wood utilization hereinafter referred to as IPK shall be license for utilization of work forest pro duce and/or non-wood from converted producing for est zone, use of producing forest zone or protected forest bearing the status as use-loan, exchange, from Other Area for Use (APl) that has been granted li cense for land use. 5. Business license for Wood Forest Produce in Natural Forest (IUPHHK-HA) hereinafter referred to as Right to Exploit Forest (HPH) shall be business license to utilize producing forest which activities consistof felling, trans porting, planting, maintaining, safefguarding, process ing and marketing of wood forest produce. 6. Business license for Utilization of Wood Forest Pro duce in Vegetation Forest Industry hereinafter referred to as IUPHHK-HTI which previously called Right to Ex ploit Vegetation Forest (HPHT) or Right to Exploit for est Industry (HPHTI) or BusinessLicensefor Utilization of Wood Forest Produce in Vegetation Forest (IUPHHK HT) shall be business license for developing Vegeta tion Forest in producinq forest developed bygroup of industries. 7. Processed . 13A 7. Procpssed Wood or K~yu Oiahan (KO) shan he pro cessed product from wood forest produce. 8. Forest hearing the Right to or hearing People's Right to the Forest shall be forest existing on the land bear ing the right to the land, 9. Vegetation Forest as the result of rehabilitation here inafter referred to as HTHR shall be Vegetfltion Forest in producing forest duly developed by means of reha bilitation on the land and forest in prodlJcinl] forpst zone for recovering, maintaining and improvement of the function of the land and forest in the context of maintaining supporting power, productivity and its role as living supporting system. 10. Business license for Utilization of Wood Forest Pro duce in the People'sVegetation Forest hereinafter re ferred to as IUPHHK-HTR shall be business license granted for utilization of forest produce in the form of wood in producing Vegetation Forest duly developed by individuals or cooperatives in order to improve pro ducing forest potentiality and quality by applying silvi culture in order to guarantee preservation of forest resource. 11. Statement Letter on Legal Log Wood (SKSKB) shall be transport document issued by the competent author ity, used for transportation, control or ownership of forest produce in the form of Log Wood transported directly from the area bearing legallicmse in the Statp controlled natural forest which legality has been veri fied and the PSDH and/or DR thereof have been fully paid. 12. Transporting Invoice for log Wood (FA-KB) shalt be transporting document issued by the FA-KB issuingof fice that is the Company Officer, for use for transport BusinessNews 7878-7879/11-4-2009 ing the forest produce in the form of log wood or Small size Log Wood originating from the legal license for State-controlled natu raI forest or Vegetation Forest in producing forest zone, and for further transporting the Log Wood or Small-size Log Wood originating from the State-controlled forest ZOne existing offsite the zone. 13. Transporting Invoice for Processed Wood(FA-KO) shall be transporting document issued by the FA-KO Issuer for use for transporting forest processed wood pro dure in the form of sawed wood, plywood, veneer, chips and Laminated Veneer Lumber (LVL). 14. Forest RpsOIJrC'e Commlsslon hpreinafter rpferred to as PSDH shall be collection charged on the holder of lic:ensp in IiPlJ of the intrinsic: value of the forest produce collected from the State-con trollad forest. 15. Reforestation Fund herinafter referred to as DR. shall be fund for reforestation and forest rehabilitation and its supporting activities collected from the holder of Business I iC'ense for Utilizfltion of forest produce in natural forest in the form of wood. 16. Minister shall he Minister assigned the duty and re sponsibility in Forestry. 17. Director (;enerfll shall hp nirector (;pnerfll ~ssigned the duty and responsibility in Forestry Produce Manage ment. 18. PrOVincial Service Office shall be service Office as c;igned the duty and responsibility in forestry in the province. 1q. Regenry Service Office shall be Service Office as signed the duty and responsibility in forestry in the rpgenry. CHAPTER II..... CHAPTER II WOOD RESOURCE Article 2 Fulfillment for the need for local wood resource shall be among other thins as follows: 1. Ucense for Collection of Wood Forest Produce (IPHHK); 2. Business License for Utilization of Community Forest (IUPHKm); 3. License for Wood Utilization (IPK); 4. Business License for Utilization of Wood Forest Pro duce in Natural Forest (IUPHHK-HA); 5. Business License for Utilization of Wood Forest Pro duce in Vegetation Forest (IUPHHK-HT); 6. Processed Wood (KO); 7. Wood Resulting from Bid (KHL); 8. Forest bearing Right/People's Right (HR); 9. Vegetation Forest Result from Rehabilitation (HTHR); 10. People's Vegetation Forest (HTR). Part 1 Method for Obtaining Wood from IPHHK Article 3 (1) In thf> context of obtalninq wood from IPHHK;:ls re ferred to in Article 2 point 1, the Regent/Mayor shall be ohliged to make inventory on thf> numher of population around / within the forest that need lo cal wood. (2) The Regent/Mayor may issue IPHHK based on the data referred to in paragraph (1). (3) Procedure for issuing License for Collection of Wood Forest Produce or Non-wood Forest Produce in pro ducing forest shall be governed in separate Regulation of the Minister. Business News 7878-7879/11-4-2009 14A (4) Wood transporting document for public interest and natural disaster shall use the SKSKB chop mentioning "Kalok" after payment of the PSDH is made. Part 2 Method for Obtaining Wood under Business License Utilization of Community Forest (IUPHKm) Article 4 (1) In the context of obtaining wood from the community forest referred to in Article 2 point 2, the Regent/Mayor shall be obliged to conduct inventory data on the num ber of IUPHKm issued. (2) The Regent/Mayor shall be able to know any shortage and/or excess of wood for local need. (3) In existence of shortage the Regent/Mayor may seek for other source in accordance with Article 2. (4) In existence ofexcess the Regent/Mayor may distrib ute it to the Regency/Municipality surrounding the ar easthatneedlocalwood. (5) Procedure for granting IUPHKm shall be governed in separate Regulation of the Minister. (6) The document for wood transportation from IUPHKm for public interest and natural disaster shall use the SKSKB chop marked "Kalok" after payment of the PSDH is made. Part 3 Method for Ohtaining Wood from TPK ArticleS (1) To ohtain the wood from TPK rf>ferred to in Artirle ') point 3, the Regent/Mayor shall be obliged to conduct inventory on the numher of IPK issued. (2) Based (2) Based on the data referred to in paragraph (1) the Regent/Mayor shall knowany shortageand/or excess of the local needfor wood. (3) In the occurrence of shortagethe Regent/Mayor may seekothersource in accordancewith the provision re ferred to in Article 2. (4) In existence of excess the Regent/Mayor maydistribu tion it to the surrounding Regency/Municipality that needs localwood. (5) Procedure for grant of IPKshall begovernedin sepa rate RegUlation of the Minister. (6) The document for wood transportation from the IPK for public interestandnaturaldisaster shalluseSKSKB marked the chop"Kalok"after having \paid the PSDH andDR. Part 4 Method for Obtaining Wood from IUPHHK-HA Article 6 (1) Fulfillment of the local need referred to in Article 2 point 4obtained from RKT shallbe maximum five per cent (5 %) of realized RKT, in the form of Small-size Log (KBK) and/or Medium-size Log(KBS), and/or Big sizLog (KB). (2) Transportation of wood referred to in paragraph (1), shall be protected by FAKB marked "Kalok" after the PSDH andDRhavebeen fully paid. (3) IfSI-PUHH Online isused, usethe pink-colored barcode for the needfor localwood. Article7 (1) If KB is required for the needfor localwoodand/or for special needfor wood for natural disaster, fulfillment Business News 7878-7879/11-4-2009 15A of the obligation to the State in the form of PSDH and DR thiscan be paidat the tariff approved by the Minis ter of Finance proposed by the Minister. (2) The proposal of the Minister referred to in paragraph (1) after havingobtained recommendation of the Re gent/Mayorcontaining amongother things,estimated amount and volume of the required KB, the location and type of damage caused by the naturaldisaster. PartS Method for Obtaining Wood from IUPHHK-HT Article 8 (1) Fulfillment of the local need referred to in Article 2 point 5 obtained from the RKT relating to landprepa ration activities shall be maximumfive percent (5 %) of realized RKT, in the form of Small-size Log Wood (KBK) and/or Medium-size Log Wood (KBS), and/or Large-size LogWood (KB). (2) Transportation of wood referred to in paragraph (1), shall be protected by FAKB marked "Kalak" after the PSDH and DR have beenfully paid. (3) If SI-PUHH Online isused, use thepink-colored barcode for the needfor loea Iwood. Article9 (1) If no land preparationactivity existsasreferred to in Article 8 paragraph (1), the holder of license shall be obliged to providewood of the largestdiameter from the HTI felling for carpentering wood five percent (5%) of realized RKT for localneed. (2)Transportation of the wood referred to in paragraph (i), shall be protected by FAKB marked "Kalak" after PSDH hasbeenpaid. Part 6..... 16A Part 6 Method for Obtaining Wood from Processed Wood Artidp 10 (1) Fulfillmentoflocal need referred to in Article 2 point 6 obtained from Businass License for Wood Forest Pro duce Primary Industry (IUIPHHK) shall be maximum five percent (5 0J0) ofthe local fluality product. (2) Transportation of wood referred to in paragraph (1), shall be protected by FAKO. Part 7 Method for Obtaining Wood from Bid Result Article 11 (1) Forestry Service Office of Regency/MuniCipality shall conduct inventory on information data relating to imple mentation of wood bid resulting from findings, confis cation and looting. (2) Basedon theinformation referred to in paragraph (1), the Head of ServiceOffice of Regency/Munk;ipality shall determine the bid winner to sell the bid result five per cent (5%) maximum in order to comply with the local requirement. (3) Transportation of wood referred to in paragraph (1), shall be protected by SAL. (4) If the bid winner fails to distribute the bid result re ferred to in paragraph (2) no SAL shall be issued. Part 8 Method for Obtaining Right to Forest or Right to People's Forest Article 12 (1) To obtain Right to Forest or Right to People's Forest referred to in Article 2 point 8, the Regent/Mayor shall BusinessNews 7878-7879/11-4-2009 be obliged to conduct inventory data on the number of Rights to Forest or Right to People's Forest existinq within its region. (2) Based on the data referred to in paragraph (1) the Regent/Mayor will know any shortage and/or excess of wood for local need. (3) In the occurrence of shortage the Regent/Mayor may seek other sources based on the provision referred to in Article 2. (4) In the occurrence of excess the Regent/Mayor may distribute it to the surrounding Regency/Munidpality that needs the local wood. (5) Procedure for granting Right to Forest or People's For est shall be governed in separate Regulation of the Minister. (6) Document for wood transportation originating from for est bearing Right or People's Forest for public interest and natural disaster shall use document that justifies with Regulation of the Minister of Forestry conosrninq Use of Statement Letter of Origin (SKAU) for Trans portation of Wood Fore<;t Produce Originnting from Forest bearing Right. Part 9 Method for Obtaining Wook from HTHR Article 13 (1) To obtain wood from HTHR referred to in Article 2 points, the Regent/Mayor shall beobliged to conduct inventory on the number of of HTHR existing in his region. (2) Based on the data referred to in paragraph (1) the Regent/Mayor will know any shortage and/or excess of wood for local need. (3)ln ..... 17A (3) In existencE> of shortage, the bid winner for HTHR stands shall be obliged to allocate five percent (5%) of its production. (4) Procedure forgranting HTHR shall be governed in sepa rate Regulation of the Minister. (5) Document for transportation of wood originating from HTHR for public interest and natural disaster using SKSKB marked "Kalok" document. Part 10 Method for Obtaining Wood from IUPHHK-HTR Artilce 14 (1) To obtain wood from IUPHHK-HTR referred to in Ar ticle 2 point 10, the Regent/Mayor shall be obliged to conduct inventory on the number of IUPHHK-HTRex isUng in his region. (2) Based on the data referred to in paragraph (1) the Regent/Mayor will know any shortage and/or excess of wood for local need. (3) In the existence of shortage the Regenty/Mayor may seek other sources based on the provision referred to in Article 2. (4) In the existence of excess the Regent/Mayor may dis tribute it to the surrounding Regency/Municipality that needs local wood. (5) Procedurefor granting IUPHHK-HTR shall be governed in separate Regulation of the Minister. (6) Document for transportation of wood originating from HTI-iRfor public interest and natural disaster shall use SKSKB marked "Kalak" document. CHAPTERTII PRICE FIXATION Article 15 To protect the wood price for local need from BusinessNews 7878-7879/11-4-2009 speculation, the Regent/Mayor shall fix sale basic price for local wood based on the result of agreement between the RegionalGovernment, association and/or entrepreneur as referred to in Article 2. CHAPTER IV REPORTING ANDCONTROL Article 16 (1) The Director General shall monitor and evaluate the implementation of Article 3 through Article 14. (2) The Regent/Mayor through the Head of Service Of fice shall report the implementation of Article 3 through Article 14 to the Minister c.q.Director Gen eral. (3) The Provincial Service Office and/or Service Office of the Regency shall supervise circulation of the local wood forest produce. CHAPTER V a.OSING PROVISION Article 17 Decision of the Minister of Forestry Num ber 12/Kpts-II/1996 concerning Obligation of Holder of Right to Exploit Forest and Provide and Sell part of its produce for development of the region and/or the People shall is hereby declared null and void. Article 18 This Regulation of the Minister of Forestry takes effect on the date it is stipulated. For public cognizance, this Regulation of the Min ister of Forestry shall be announced by placing it in the State Gazetter of the Republic of Indonesia. Enacted ..... 18A Enacted inJakarta On February 9,2009 THE MINISTER OFFORESTRY Sgd. H. M.S. KABAN Enacted inJakarta OnFebruary 16, 2009 THE MINISTER OF LAW AND HUMAN RIGHTS OF THE REPUBUC OF INDONESIA, sgd. ANDI MAlTALAlTA STATE GAZETTE OFTHE STATE OF REPUBUC OF INDONESIA YEAR 2009 NUMBER 21 ===( MA )=== Business News 7878-7879/11-4-2009 Lettere ..