Decree of the Minister of Forestry No. 55/Kpts-II/1994 on the guidelines regarding the borrowing and use of forest zones

• FOR EST R Y f DEPARTMENT OF FORESTRY DECREE OF THE MINISTER OF FORESTRY NUMBER : 55/Kpts-II/1994 DATED: FEBRUARY 7, 1994 ON THE GUIDELINES REGARDING THE BORROWING AND USE OF FOREST ZONES THE MINISTER OF FORESTRY, Considering : a. that in principle, the utilization of ~ zones must be in line with their function and allotment as laid down in Act Number 5 of 1067 on the Main Provisions of Forestry and Act Number 5 of 1990 on the Conserva tion of Natural and Biological Resources and their Ecosystems as well as their im plementation regulations; b. that the utilization of forest zonal land outside its function and alootment must, ~ far as possible, be restricted and straigh thened out only for purposes which are re lated to public interest in a limited way or other development interest outside the forestry sector; c. that the guidelines regarding the borrow ing and use of forest zones which have been laid down with the Decision of the Direc tor General of Forestry dated May 23, 1978 Number 64/Kpts/DJ/I/1978 need to be per fected and adjusted with the present situa tion; 515 Bearing in mind d. that in order to regulate the abovementio~ ed matter, it is considered necessary to lay down Guidelines regarding the Borrow ing and Use of Forest Zones with a Decree of the Minister of Forestry. : 1. Act Number 5 of 1967 on the Main Provisions of Forestry; CAFI 22 / 21-2-1995. 2. Act Number 5 of 1990 on the Conservation of Natural and Biological Resources and their Ecosystems; 3. Act Number 24 of 1992 on the of Space; 4. Government Regulation Number 33 on Forest Planning; Structuring of 1970 5. Government Regulation Number 28 on Forest Protection; of 1985 6. Government Regulation Number 36 of 1986 on the State Forestry Public Company; 7. Presidential Decree Number 15 of 1984 in conjunction with Presidential Decree NlliOCer 58 of 1993 on the Composition of Depart mental Organizations; 8. Presidential Decree Number 32 of 1990 on the Management of Protection Zones; 9. Presidential Decree Number 55 of 1933 on the Procurement of Land For the Execution of Construction For Public Interest; 10. Presidential Decree Number 96!M of 1993 on the Formation of the Development Cabinet VI; 11. The Decree of the Minister of Forestry Num ber 399!Kpts-II!1990 on the Guidelines re garding the Affirmation of Forests; 12. The Decree of the Minister of Forestry Num ber 677!Kpts-II!1993 on the Organization and Management of the Department of Fores try. HAS DECIDED : To lay down : THE DECREE OF THE MINISTER OF FORESTRY ON THE GUIDELINES REGARDING THE BORROWING AND USE OF FOREST ZONES. CHAPTER I GENERAL PROVISIONS Article 1 In this Decree, referred to as : 516 CAFI 22 / 21-2-1995. 1. The borrowing and use of a forest zone is the transfer of the use of part of the forest zone, both the one which hE been designated and that which has been determined to another party for the purpose of development outside the forestry sector without changing the status, allotment 3rl function of said forest zone. 2. The borrowing and use of a forest zone with compensation is the borrowing and use of part of a forest zone, both the one which has been designated and that which has been determined by making the borrower bear the burden of pro viding and delivering non forest zone land to the Depart ment of Forestry to be converted into a forest zone. 3. The Restricted Public Interest is the interest of all lay ers of the community of which the execution of its develop ment is conducted and owned by a Government Agency and is not used for the pursuit of profit, for the purpose of tie construction of public roads, water disposal channels, ir rigation channels, public burial facilities, public safe= ty facilities, telecommunication repeaters, radio broad casting stations, teleVision relay stations, accommodatkn basins and fresh water channelling pipes. 4. Clear and clean is the condition of the prospective pensation land of which its status is already clear is free from all kinds of burden (ownership/control, gage and dispute) . CHAPTER II BASIS AND OBJECTIVES OF BORROWING AND USE Article 2 com and mort Forest zone borrOWing and use can be conducted on the basis of the approval of the Minister of Forestry. Article 3 Forest zone borrowing and use has the objectives to : a. Restrict and regUlate the use of some of the forest zones for a restricted pUblic interest or for the interest of any other development outside the forestry sector without changing its status, function and allotment; b. Prevent the occurrence of an enclave. within the forest zone. CIIAPTER THE NATURE AND FORM OF Article III BORROWING AND USB 4 Forest zone borrowing and use shall constitute the use of a forest zone which is temporary in nature. 517 CAFI 22 / 21-2-1995. Article 5 Forest zone borrowing and use can be in the form of borrow ing and use without any compensation or borrowing and use with a compensation. Article 6 (1) Forest zone borrowing and use without any compensation can be given only for a restricted public interest and for national defence and security which are executed by government agencies. (2) Forest zone borrowing and use with a compensation can be given for commercial development activities which are conducted by Government Agencies, State Owned Enterprises (BUMN), Regionally Owned Enterprises (BUMD), Cooperatives or private companies. Article 7 Deviating from the provision of Article 6 paragraph (1), for any Provincial area of which its forest zone has an extent which is less than 30% of the extent of the land of the pro vince concerned, borrowing and use with a compensation shall be in force. Article 8 Forest zone borrowing and use for mining and energy activi ties shall be regulated in a separate provision. CHAPTER IV FOREST ZONE WHICH CAN BE LENT FOR USE Article 9 (i) Basically, only production forest zones can be delivered as to their use to another party by borrowing for use. (2) Forest zones other than the production forests can be lent for use to another party only if they are going to be used for a restricted public interest. CHAPTER V PROCEDURE OF SUBMITTING AN APPLICATION Article 10 (1) An application for forest zone borrowing and use shall ~ submitted to the Minister of Forestry through : 518 CAFI 22 / 21-2-1995. a. Head of the Territorial Office of the Department of Forestry of the Province concerned provided the appli cation is connected with an area outside the working territory of "Perum Perhutani", with a (carbon) copy to Head of the Forestry Service of the First Level Re gion or Head of the UPT concerned. b. The President Director of "Perum Perhutani" prOVided the application is connected with the working territo ry of "Perum Perhutani", with a (carbon) copy to Head of the Territorial Office of the Department of Fores try concerned. (2) The application as referred to in paragraph (1) shall be supplemented with : a. The location maps and extent of the forest zone appl! ed for; b. The utilization plan and the work plan; c. The recommendation of the Governor/Head of the First Level Region concerned; d. The statement regarding the capability to bear all costs relating to said application. (3) Head of the Territorial Office of the Department of Fores try as referred to ~n paragraph (1) letter a shall pass on said application to the Minister of Forestry within a grace period of 20 (twenty) working days as of the date of the receipt of said application along with the tech nical consideration on the basis of the field condition with its (carbon) copy submitted to : a. The Secretary General of the Department of Forestry; b. The Director General of Forest Inventorization and Utilization; c. The Director General of Forest Exploitat~on; d. The Director General of Forest Protection and Nature Conservation. (4) If head of the Unit of "Perum Perhutani" receives the aE plication for forest zone borrowing and use, said appli cation shall be passed on to the President Director of "Perum Perhutani" within a grace period of 20 (twenty) working days as of the receipt of the application with a (carbon) copy to Head of the local Territorial Office of the Department of Forestry. (5) The President Director of "Perum Perhutani" shall pass on the application as referred to in paragraph (1) letter 519 CAFI 22 / 21-2-1995. and paragraph (4) together with the technical considera tion to the Minister of Forestry within a grace period of 15 (fifteen) working days as of the receipt of said appl ication wi th a (carbon) copy to the Secretary General of the Department of Forestry and the Director General of Forest Inventorization and Utilization. CHAPTER VI PROCEDURE OF COMPLETING THE APPLICATION Article 11 (I) The Minister of Forestry, before giving a decision, may first ask for a technical suggestion/consideration to the related Echelon I of the Department of Forestry in con nection with the existence of the application referred to in Article 10. (2) The related Echelon I shall submit the suggestion / con sideration to the Minister of Forestry through the Di rector General of Forest Inventorization and Utilization within a grace period of 30 (thirty) working days as of the receipt of said application. (3) The Director General of Forest Inventorization and Uti lization, after coordinating said suggestion/considera tion, shall submit it to the Minister of Forestry with in a grace period of 25 (twenty five) working days as of the receipt of the said technical suggestion/considera tion in order to get further decisions. Article 12 (1) In case any field data are still required, a Forestry De partment Team of which its element consists of the relat ed Echelon I and or the Forestry Agency in the region can be formed to conduct field surveys and studies. (2) The formation of the said Field Survey/Study Team shall be conducted with the Decree of the Secretary General on behalf of the Minister of Forestry. (3) The results of said field surveys and studies shall be reported by the Team Leader to the Minister of Forestry through the Director General of Forest Inventorization and Utilization at the latest 30 (thirty) working days after the field surveys and studies have been executed. 520 CAFl 22 / 21-2-1995. (4) The Director General of Forest Inventorization and Utili zation, within a grace period of 15 (fifteen) working days as of the receipt of the report regarding the re sults of said surveys and studies, shall pass it on to the Minister of Forestry in order to obtain a decision. Article 13 (1) The Minister of Forestry, within a grace period of 15 (fifteen) working days as of the receipt of the sugges tion/consideration which is coordinated by the Director General of Forest Inventorization and Utilization as re ferred to in Article 11 paragraph (3) or the report re garding the resul~s referred to in Article 12 paragraphs (3) and (4), shall give a decision on said application. (2) The Director General of Forest Inventorization and Utili zation, within a grace period of 30 (thirty) working ~ after obtaining the decree of the Minister of Forestry, shall prepare the draft of the approval or rejection let ter towards said application. CHAPTER VII OBLIGATIONS OF THE APPLICANT Article 14 If the application is approved with a borrowing and use me thod without any compensation, the applicant shall be ~sed with the obligations : a. to pay compensation for the value of stands on timber es tates or collections in the form of IBB and DR on natural forest stands; b. to bear the costs of measuring, mapping and the into the ground the border mark on the borrowed zone; planting forest c. to bear the costs of reforestation and reclamation on the borrowed forest zone; d. to draw up and sign the borrOWing and use agreement; e. to help to maintain security in and around the forest zone; borrowed f. to provide ease for Forestry apparatus, both central and regional, during the time they conduct supervision in the field. If the application with the borrowing and use method with a compensation is approved, the applicant shall be imposed with the obligations : 521 CAFI 22 / 21-2-1995. a. to pay compensation for the value of stands on timber es tates or collections in the form of IHH and DR on natural forest stands; b. to bear the costs of measuring, mapping and the planting into the ground the border mark on the borrowed forest zone; c. to reclaim the already used forest zone without waiting for the activities to end; d. to provide and deliver another plot of land which is "clear and clean" to the Department of Forestry as a compensation on the borrowed forest zone; e. to bear the cost of border organization on the compensa tion land; f. to bear the cost of reforestation on the compensation land; g. to draw up and sign the borrowing and use agreement; h. to help to maintain security in and around the borrowed forest zone; i. to provide ease for Forestry apparatus during the time tlcy conduct supervision in the field. In case said stands is given to a holder of Timber Utili~ zation Permit, the holder of the Timber Utilization Pentit (IPK) shall be obligated to pay IHH and DR as referred to in paragraph (1) letter a and paragraph (2) letter a in line with the prevailing provisions. Article 15 Forest zone utilization activities in the field can be con ducted only after the applicant has fUlfilled the designated ob1igations. CHAPTER VIII RATIO OF BORROWING AND USE OF FOREST ZONES WITH COMPENSATIONS Article 16 The magnitude of the ratio of borrowing and use of forest zones with compensations is determined as follows : (l) For the purpose of development relating to any restrict ed public interest as referred to in article 7 and for commercial activities by BUMN, BUMD or a Cooperative, tiE minimal amount shall be 1 : 1. 522 CAFI 22 I 21-2-1995. (I) For the purpose of development activities which are con ducted by a pr.ivate company, the minimal amount shall be 1 : 2. CHAPTER IX BORROWING AND USE AGREEMENT Article 17 l} A forest zone Borrowing and Use Agreement without a com pensation or with a compensation shall be drawn up and signed by the applicant together with : a. Head of the local Territorial Office of the Department of Forestry for any forest zone outside the working territory of "Perum Perhutani". b. The President Director of "Perum Perhutani" working territory of "Perum Perhutani". for the 2) The model or from of the Borrowing and Use of Forest Zone Agreement referred to in section (1) is as the attached specimen (attachment I and II). CHAPTER X PERIOD AND EXTENSION OF THE BORROWING AND USE PERMIT Article 18 The borrowing and use agreement without compensation the borrowing and use agreement with compensation are for a maximum period of 5 (five) years calculated as signing of the borrowing and use agreement and may be ed. Article 19 and or given of the extend (1) The request for an extension of the borrowing and use of forest zones shall be submitted to the Head of the Re gional Office of the Department of Forestry and or The President Director of Perum Perhutani, and a carbon copy is submitted to the Minister of Forestry. (2) The request for an extension of the use of forest zones as referred to section (1), can only be considered after an evaluation has been conducted on the execution of the said borrowing and use agreement. (3) The expenses to execute the evaluation activity referred to in section (2) shall be charged to the applicant. 523 CAFI 22 / 21-2-1995. (4) The authority to issue a permit for the extension of the borrowing and use of forest zones specially for the pu blic interest is limited to : a. The President Director of Perum Perhutani for the work ing territory of Perum Perhutani. b. Head of Territorial Office of the Department of Fores try for forest zones which are not the working terri= tory of Perum Perhutani. (5} The authority to issue the permit for the extension of the borrowing and use of forest zones for non public in terest is limited to the Director General for Inventory and Forest Land Use. CHAPTER XI MISCELLANEOUS PROVISIONS Article 20 (1) The utilization of forest zones by way of borrowing and use shall terminate because the time limit for the bor rowing and use has expired or because it has been cancel led by the Minister of Forestry. (2) The cancellation of the borrowing and use of Forest Zones by the Minister of Forestry as referred to in section CD may happen because the borrowing and use permit hOlder : a. does not use the said forest zone in line with the provisions mentioned in the agreement and or the bor rowing and use agreement; b. has transferred the forest zone which it has borrowed to another party without the approval of the Minister. c. does not fUlfill its obligation at the time which has been determined as mentioned in the agreement and or borrowing and use agreement which has been made and signed by the party concerned. d. has left the forest zone which it has borrowed before the borrowing and use agreement has expired. (3) The Supervision on the activities within the borrowing and use forest zone carried out by the Forestry agency which is assigned to manage the forest zone concerned. 524 CAFI 22 / 21-2-1995. CHAPTER XII TRANSITIONAL PROVISIONS Article 21 The existing borrowing and use of forest zones agreement ~l remain in force up to the expiry of the time limit of the said borrowing and use, whereas the extension is implemented in line with the provisions in this decree. CHAPTER XIII CONCLUDING PROVISIONS Article 22 With the establishment of this decree, the other provisions regulating the borrowing and use of forest zones are declar ed longer valid. Article 23 This decree comes into force as of the date of establishment. Established in Dated Jakarta February 7, 1994 THE MINISTER OF FORESTRY sgd. DJAMALUDIN SURYOHADIKUSUMO Attdchment I To be continued 525 CAFI 22 / 21-2-1995.