Forestry Minister Regulation No. 17/Menhut-II/2009 concerning procedure on the imposing of administrative sanctions on business permit holders of forest primary wood industry products

274 PROCEDURE ON THE IMPOSING OF ADMINISTRATIVE SANCTIONS ON BUSINESS PERMIT HOLDERS OF FOREST PRIMARY WOOD INDUSTRY PRODUCTS (Forestry Minister Regulation No. P.17/Menhut-II/2009, dated March 6, 2009) WITH THE BlESSING OFTHE ONE AND ONLY GOD THE FORESTRY MINISTER, COnsidering : a. that based on Article 115and Article 116 of Govern ment Regulation NO.6Year 2007in conjunction With. No.3 Year 2008, holders of Business Permitof Forest Primary Wood IndustryProducts (IUIPHHK = IzinUsaha Industri PrimerHasil Hutan Kayu) hascertain obliga tionsand prohibitions, andshallbe imposed to admin istrativesanctions if it committed any violationpursu ant to Article135; b. that basically, all obligations to the state on forest primary wood industry productswhere its raw mate rial comes from a state forest, had beensettled thru official assessment, and had become private goods as is the case with raw material from a right to a forest; c. Article139of Government Regulation No.6 Year 2007 in conjunction with. No.3 Year 2008statesthat provi sions of procedure on the imposing of administrative sanctions to business permit holders of forest primary industry product is regulated with a regulationof the Minister;· d. that related with the above issues, it isdeemed neces sary to stipulatea procedure on the imposing of ad ministrative sanctions on business permit holders of forest primary wood industry products with a regula tion ofthe Minister. Business News 7877/10-30-2009 In viewof: L LawNo.41 Year 1999 (BNNo. 6412pages1A-6A etr}concerning Forestry (StatuteBook of the Repub lieof Indonesia Year 1999No. 167, Supplement to Stat ute BookNo.3888)which hadbeen amended byLaw No. 19 Year 2004 (BN No. 7143pages 26A-29A) concerning Stipulation of Government Regulation In Lieuof Law No.1 Year2004concerning Amendment to Law No. 41 Year 1999concerning Forestry to be come a Law(StatuteBook of the Republic of Indonesia Year 2004 No. 86, Supplement to Statute Book No. 4412); 2. LawNo.32year2004 (BNNo. 7183pages 1A-11A etc) concerning the Regional Government (Statute Bookof the Republic of IndonesiaYear 2004 No. 125, Supplement to StatuteBook of the Republic of Indone siaNo.4437)which hadbeenamended by LawNo.8 Year 2005 concerning Stipulation of Government Regu lation In Lieuof Law No.3 Year 2005 (BN No. 7218 pages20A-21A etr}concerning Amendment to Law No. 32Year 2004 concerning the Regional Government to Become a Law(Statute Bookof the Republic of In donesia Year 2005 No. 108,Supplement to Statute Book of the RepublicofIndonesia No.4548); 3. Government Regulation No. 6Year 2007 (BNNo. 7529 pages 1A-21A etr}concerning (StatuteBook of the Republic of IndonesiaYear 2007No.22, Supplement to Statute Book of the Republic of Indonesia No. 4696) which had been amended byGovernment Regulation No, 3Year 2008 (8NNo, 7676pageslOA-ZSA~) (Statute ............ (Statute Book of the Republic of IndonesiaYear 2008 No.16,Supplement to StatuteBook of the Republic of Indonesia No.48140); 4. GovernmentRegulation No. 38 Year 2007concerning Division of Government Affairsbetween the Govern ment,Provincial Governments, andRegency/City Gov ernments(Statute Bookof the Republic of Indonesia Year 2007No.82, Suppiement to StatuteBookof the Republic of Indonesia No.4737); S. Presidential Decree No. 187/M Year 2004 (BN No. 7128 pages30A-3.1A)concerning Fonnation of Indonesia Unitedcabinet having been amended severai times, lastlyby Presidential Decree No.31/PYear2007; 6. Presidential Regulation No.9 year200S (BNNo. 7182 pages2A-23A) concerning Position, Mission, Func tions, Organizational Structure, andWorkMechanism of State Ministries of the Republic of Indonesia, haVing been amended several times, lastly by Presidential Regulation No. 20Year 2008; 7. Presidential Regulation No. 10year 200S concerning Organization Units andMissions of EcheJon-I Agencies of State Ministries of the Republic of Indonesia having been amended several times, lastly by Presidential Regulation No. SO Year 2008; 8. Forestry Minister Decision No. 6884/Kpts-II/2oo2 con cerning Evaluation Criteriaand Procedure on Forest Primary Wood Industry Products; 9. Forestry MinisterDecision No.303/Kpts-II/2003con cerning Procedure on the Assessment of the Perfor mance of Forest Primary WoodIndustry Products in conjunction with Forestry Minister Regulation No. P. 17/Menhut-II/2004; 10. Forestry Minister Reguiation No. P.13/Menhut-II/200S concerning Organization and WorkMechanism of the Department of Forestry haVing been amended several Business News 7877/10-30-2009 28A times, lastlybyForestryMinisterRegulation No.P.64/ Menhut-II/2008; 11. Forestry Minister Regulation No.P.51/Menhut-II/2006 concerning the Use of StatementLetter onOrigin (SKAU =SuratKeterangan Asal Usul)for the transportation of forest wood productsoriginatingfrom right on for est, having been amended several times, lastlyby for estryMinister Regulation No. P.33/Menhut-II/2oo7 (BN No.7703pgs1SB-17B); 12. Forestry MinisterRegulation No.P.5S/Menhut-II/2006 concerning the Administering of Forest Products Origi nating from a StateForestwhich had been amended by Forestry Minister Regulation No. P.63/Menhut-II/ 2006; 13. Forestry MinisterRegulation No.P.16/Menhut-II/2007 concerning Plan on the Fulfillment of Industry Raw Material(RPBBI = Rencana Pemenuhan Bahan Baku Industry) for forestwood productprimaryindustries; 14. Forestry MinisterRegulation No.P.3S/Menhut-II/2008 in conjunction with Forestry MinisterRegulation No. P.9/Menhut-II/2009 concerning Business Permit for Forest Product Primary Industries; 1S. forestry MinisterRegulation No.P.S8/Menhut-II/2008 concerning Competence and certificationofTechnical Manpower on the Management of Everlasting Forest Production (StateGazette of the RepUblic of Indonesia Year 2008No.S2). DECIDES: Tostipulate: FORESTRY MINISTER REGULATION CONCERNING PROCE DURE ON1l-IE IMPOSING OF ADMINISTRATIVE SANCTIONS ON BUSINESS PERMIT HOLDERS OF FOREST PRIMARY WOOD INDUSTRY PRODUCTS CHAPTERI •.•.• OiAPTERI GENERAL PROVISlONS Artide 1 In this Regulation, definitions used are: 1. Administrative violationisan act that dln be imposed withanadministrative sanction on business pennithold ers of forest primarywood industry products beyond provisions of Article 78 of Law No. 41 Year 1999con cerning Forestry. 2. Forest primary wood industry product(IPHH = Industri PrimerHasil Hutan) is an industry on the processing of logsand/or small logs into half finished goodsor finished goods in the form of sawn timber, wood chips,veneer, plywoodand LaminatedVeneer Lum ber(LVL). 3. Business Permit for Forest Primary WoodIndustryProd uct(IUIPHHK = Izin Usaha Industri Primer Hasil Hutan Kayu) isa permit to process logsand/or small Jogs to beoneor several kinds of products ina certain location provided to a permitholderbythe authorities. 4. Permit Holder isa holderof a business permiton forest primarywood industryproducts. 5. Director General is the DirectorGeneral assigned with dutiesandresponsibilities in the aspect of the Adminis teringof Forestry Production. 6. PrOVincial Service isa Service assigned withdutiesand responsibilities in the aspect of forestry in a province region. 7. Regency/City Service is a Service assigned With the dutiesandresponsibilities in the aspect of forestryina regency/city region. 8. Board isa Monitoring Board on the utilization of forest produce of a local region. Business News 7877/10-30-2009 29A OiAJ7TERll PROCEDURE ONTHE IMPOSINGOFSANCTIONS PartOne sanctionin the form ofTemporary Cessation of the Provision of Services Paragraph 1 Types of Violation Article2 (1) A Permit Holderwill be imposed to a sanction in the form of temporary cessation of the provision of ser vices if it: a. didnot compile andsubmita plan onthe fulfillment of industry raw material (RPBBI = Rencana Pernenuhan Bahan Baku Industri)every year; b. did not compile andsubmitamonthly reportonthe realization of the fulfillment and use of raw mate rialandproduction; c. did not compile andsubmita LogMutation Report (LMKB = Laporan Mutasi Kayu Bulat); d. did not compile and submit Mutation Report On Forest Processed Products (LMHHO = Laporan Mutasi Hasil HutanO/ahan); e. did not report its activitiesand gainsof its indus try periodically to the permit provider and the agency assigned the authority on the administer ing and developmentof forest product primary industry. (2) Types of the services referred to in paragraph (1) are in the form of: a. Commissioning andstipulation of registration num berof Issuerof Log Transportation Invoice(FA-KB = Faktur Angkutan Kayu Bulat), andStipulation of registration numberof Issuerof Processed Wood Transportation Invoice(FA-KO = Faktur Angkutan Kayu Olahan) by the Head of the Board; b. Commissioning ..•.• b. Commissioning of the Issuerof Processed Wood 1l'ansportation Invoice(FA-KO) bythe Headof Pro vincial Service; c. Stipulation of serialnumberof FA-KB forms bythe Director of ForestryRetribution Administration and Circulation of Forest Products on behalfof the Di rectorGeneral; d. Recommendation on the stipulation of serial num berof FA-KB forms by Provincial Service. Paragraph 2 Procedure onthe Imposingof Administrative sanctionin the form of Temporary cessation of the Provision of Services to PermitHolders Article3 (1) Imposing of thesanction meantin Article2 paragraph (1) shallbebased onresults of evaluations performed by Provincial Service or Regency/City Service or the Board, and its result shallbe reportedto the Head of Provincial Service. (2) Basedon the report referred to in paragraph (1), the Head of Provincial Service shall perform coordination onthe evaluation of re-checks with related parties in dudingcompanies concerned, andin the eventofavio lation,theresultthere-ofshallbesetforth ina report. (3) Based onthe report referredto in paragraph (2), the Head of Provincial Service will issue a decision con cerning a sanction in the form of temporarycessation of provision of services (SPSPP = sanksiPenghentian Sementara Pemberian Pelayanan) with copies to the DirectorGeneral, Head of Regency/City Service, and Head of the Board. (4) Thesanction referred to in paragraph (3) shall be im posed without prior warning, and isvalidfor a period of one (1) year from the imposing ofthe sanction. Business News 7877/10-30-2009 30A (5) Ifthe Permit Holder had executed hisobrlQlltfons within the one(1) yearperiod, the Head ofProvincial Service shall issue a decfsion on the cancellation ofthe sanc tion in the form of temporarycessation ofprovision of services (SPSPP) as meant in paragraph (3), and the PermitHolderhasthe right to receive services again. Article4 (1) If the one(1) y~r period referredto in ArtlcIe 3 para graph (3) elapsed and the PermitHolderdid not fulfill hisobligations, the Head of Provincial Service shallis suea First Warning Letter (SPPt = Surat Peringatan Pertarna) to the PermitHolder. (2) Ifwithin 30 (thirty) work daysfrom the dateof receiv ing the FirstWarning Letter (SPPt) the PermitHolder did not respond, or providea response but the sub stance there-ofis unacceptable, the Head of Provincial Service shall issue a Second Warning Letter (SPKd = Surat Peringatan Kedua). (3) If within a period of 30 (thirty) work days from the date of receiving the Second Warning Letter (SPKd), the Permit Holderdid not respond, or provide a re sponse but the substance there-ofisunacceptable, the Head of Provincial Service shallissue aThirdWarning Letter(SPKt = SuratPeringatan Ketiga ). (4) Thewarninglettersreferred to in paragraphs (l)thru (3) shall be given by the Head of Provincial Service with copies to the DirectorGeneral, Governor, Head of Regency/City Service and Head of the Board. (5) If the substance of the response of each level of warning is acceptable, the Headof Provlncial Ser vice shall issue a cancellation of the SPPt or SPKd or SPKt, and if within a period of 14 (fourteen) work days from receiving the substance of the response and acencellatlon was not issued, the SPPt ..... SPPt or SPKd or SPKt is declared cancelled by law. (6) If within a period of 30 (thirty) work days from the date of receiptof the Third Warning Letter (SPKt) the PermitHolderdid not respond, or gavea response but its substance is unacceptable, the Head of Provincial serviceshallpropose for a revocation of permit to the : a. Minister, for industrieswith a capacityabove6.000 (six thousand) cubicmeters annually; b. The Governor, for industries with a capacity of up to 6.000 (six thousand) cubic meters annually; c. Regent/Mayor, if the provisionof permit for indus tries is for a capacity of up to 2.000 cubic meters annuallydelegatedby the Governor to the Regent/ Mayor. (7) On the above proposal, the Minister or Governoror Regent/Mayorshall issuea Decision Letter on the re vocationof industry business permit. PartTwo sanction in the Formof TemporaryCessation of Industry Business Paragraph 1 Types of Violation Article 5 A Permit Holder will be imposed to a sanction in the form of temporary cessation of industry business if: a. it did not employ or did not possess a certified man power for the surveyand testing of forest products if the industry has a capacity of up to 6.000 (six thou sand)cubicmetersannually. b. it did not possess a certified manpowerfor surveyand testing of forest productsif the industryhasa capacity of more than 6.000 (six thousand) cubicmetersannu ally, Business News7877/10-3l}o2oo9 31A Paragraph 2 Procedure on the Imposing of Sanction in the form of Temporary cessationof Industry Business Article 6 (1) Imposingof the sanction meant in Article5 is basedon the result of evaluationsperformed by the Board. (2) The Board shallperformevaluations on the obligations of Permit Holdersto employ or to possess manpower for the survey and testing of forest products haVing certificates of GANISPHPL LogTesting (GANISPHPL-PKB = GANISPHPL PengUjian Kayu BUlat) and/orGANISPHPL sawn WoodTesting (GANISPHPL-PKG = GANISPHPL Pengujian Kayu Gergajian) and/orGANISPHPL Plywood Testing (GANISPHPL-PKL = GANISPHPL Pengujian Kayu tapis) and/or GANISPHPL ChipTesting (GANISPHPL PChip = GANISPHPL Pengujian Chip) for industries with a capacityof up to 6.000 (six thousand) cubic meters annually. (3) The Board shall performevaluations on the obligations of PermitHoldersto possess manpowerfor the survey and testing of forest products having certificates of GANISPHPL Log Testing (GANISPHPL-PKB) and/or GANISPHPL sawnWoodTesting (GANISPHPL-PKG) and! or GANISPHPL Plywood Testing (GANISPHPL-PKL) and! or GANISPHPL ChipTesting (GANISPHPL-PChip) for in dustries with a capacityof more than 6.000(six thou sand)cubicmeters annually. (4) On the result of the evaluations referred to in para graph (2) or paragraph(3), a report shallbe compiled and submitted to the Headof Provincial service. (5) Based on the report referred to in paragraph (3), the Headof Provincial service shall imposea sanction in the form of TemporaryCessation of Industry Business (SPSUI = Sanksi Penghentian Sementara Usaha Industri) with copiesto the Director General, Headof Regency/City 5ervit;e, and Head of 6oard. (6\ The .... (6) Thesanction meantin paragraph (5) shall be imposed without priorwarning andvalid for a period of one(1) year from the issuance of the sanction. (7) If within a period of one (1) year the Permit Holder fulfilled its obligations andreported to the Head of Pro vincial service, the Head of Provincial serviceshallis suea cancellation of the SPSUI, and if within a period of 14 (fourteen) work daysa cancellation was not is sued, the imposing of the sanction meantin paragraph (4) iscancelled by law. Article7 (1) If'i:lfter passing the one (1) year period meant in Ar ticle 6 paragraph (5) the Permit Holderdid not fulfill hisobligations, the Head of Provincial serviceshall is suea FirstWaming Letter(SPPt) to the Permit Holder. (2) If within a period of 30 (thirty) work days from the date of receiptof the FirstWarningLetter (SPPt) the Permit Holder did not respond, or gavea response but its substance is unacceptable, the Head of Provincial serviceshall issue a Second WarningLetter (SPKd). (3) If within a period of 30 (thirty) work days from the date of receiptof the Second WarningLetter (5PKd) the Permit Holder did not respond, or gavea response but its substance is unacceptable, the Head of Pro vincial service shall issue a Third Warning Letter (SPKt). (4) The warning letters referred to in paragraphs (1), (2) and (3) are issued by the Headof Provincial Ser vice with copies to the Director General, the Gover nor, Head of Regency/City service and Head of the Board. Business News 7877/10-30-2009 32A (5) If the substance the response to each level of warning isacceptable, the serviceHead shallissue a cancella tion oftheSPPt or 5PKd or SPKt, and if withina period of 14 (fourteen)workdays from receiving the response substance, a cancellation is not issued, the SPPt or SPKd or SPKt isdeclared cancelled by law. (6) Ifwithina period of 30 (thirty) workdaysfromthedate of receipt of the Third Warning Letter(SPKt), the Per mit Holder did not respond, or gavea response but its substance isunacceptable, the Head of Provincial ser viceshallpropose for a revocation of pennit to the : a. Minister, for industries with a capacity of morethan 6.000 (six thousand) cubicmetersannually; b. The Governor, for industries with a capacity of up to 6.000 (sixthousand)cubicmetersannually; c. Regent/Mayor, in the event the provision of permit for industries with a capacityof up to 2.000 cubic meters annually is delegated by the Governor to the Regent/Mayor. (7) Onsuch proposal, the Minister orGovernor orRegent/ Mayor shall issue a decision letter onthe revocation of the industrybusiness permit. PartThree sanction in the Form of Revocation of Industry Business Permit Paragraph 1 Types of Violation Article8 (1) A PermitHolderwill be imposed to an administrative sanction in the form of permit revocation if : a. performing industry business not inaccordance with the permit it possessed; b.did ........... b. did not submit for a permlt on an extension, if it performed an extension of production exceeding 30% (thirty percent) of the permitted production capacity; c. performing industry business activities not in ac cordance with those stipUlated in the perrnit; d. extendingindustrybusiness without a permit; e. removinq the locationof industry business without a permit; f. performing activities likely to cause pollution and damages to the living environrnent exceeding the limit of environmentstandardquality; g. receiving, accornmodating, or processing raw ma terial of forest products originating from illegal sources; or h. performing industryactivities not inaocordance with the provided permit. (2) Imposingof the revocation sanction referred to in para graph (1) shallbe madeby the permit iSSUing offldal. Article 9 The administrative sanctions referred to in Ar ticle 8 paragraph (1) letters b, d, and e are not applicable for WoodIPHH if based on an audit, all of its raw material comesfrom a right to a forest and/or rejuvenation of Plant Estate. Paragraph 2 Procedure on the Imposing of Sanctionin the Formof Revocation of PermitIssued by the Minister Article 10 (1) Irnposingof the revocation sanction meant in Article8 Business News7877{10-30-2009 33A paragraph (1) on Wood IPHH with a capacity more than 6.000 (six thousand) cubic metersannuallyshall be based on a result of an Investigation by a Team established by the DirectorGeneral, and its result is be set forth in an Investigation Report. (2) If the result of the investigation set forth in the In vestigationReportprovedthat the PermitHoldercom mitted the violation meant in Article 8 paragraph(1) letters a thru h, the Director General on behalf of the Minister shall issue a First Warning Letter in writing. (3) On the written warning meant in paragraph (2), the PermitHoldershall respond with reasons inaocordance with the substance of the warning beforethe expiryof the FirstWarning Letter period. (4) If the Permit Holderdid not respondWithin the stipu lated period, or gave a response but stating reasons not in accordance with the substance of the warning, then a Second Warning Letter shall be issued with a time interval of 30 (thirty) work days. (5) If the PermitHolder did not respondwithin the stipu lated period, or gave a response but stating reasons not in accordance with the substance of the warning, then aThird WarningLetter shallbe issued with a time interval of 30 (thirty) work days. (6) Ifthe substance of the response is acceptable, the Di rector General on behalf of the Minister shall issuea cancellation of the SPPt or SPKd or SPKt, and if in a periodof 14(fourteen) work daysfrom the aoceptance of the substance of the response and a cancellation was not issued, the SPPt or SPKd or SPKt is declared cancelled by law. (7) If ..... 34A (7) If the Pennit Holderdid not respond within the stipu latedperiod, or gave a response but stating reasons not in accordance with the substance of the warning, the DirectorGeneral shallproposefor a revocation of the permitto the Minister, accompanied with a draft of a decision for the revocation with the SPPT, SPKd, and SPKt. (8) Based on the proposal referred to in paragraph (7), the Minister will issue a decision on pennit revocation. Article 11 (1) In the eventthere isa suspected violationasmeant in Artide8 paragraph (1) letterg withsufficientevidences, the DirectorGeneral will request for an Investigator, preferably a Civil Government Investigator, (PPNS = Penyidik Pegawai NegeriSipil) to perfonn an investi gation in accordance with prevailing provisions. (2) Based on the result of the investigationreferred, to in paragraph (1) and if sufficientevidences are foundon the suspected violation referred to in Article8 para graph (1) letter g, it shall be followed-up with an in vestigation and recording of the case. (3) Duringthe investigation and recording period,the In vestigatorshall propose to the DirectorGeneral to ex ercise a Temporary Freezing of Operations (PSO = Pembekuan 5ementara Operasional). (4) Based on the proposal of the Investigator referred to in paragraph (3), the Director General shall issue a Business News 7877/10-30-2009 letter onTemporary Freezing of Operations (PSO) for a maximumof 40 (forty) days. (5) If before the 40 (forty) days, the Investigator states that therewasnot enough proof,the Investigator shall propose for a cancellation of the PSO to the Director General, and the DirectorGeneral shall issue a letter on the cancellation of the PSO. (6) cancellation of the PSO referred to in paragraph (5) shall not stopthe investigation process by the Investi gator. (7) Ifan industrybusiness pennit holderisstated asproved to havecommittedthe criminal Violation referred to in Article 8 paragraph (1) letterg proved bya courtdeci sion, the business pennit of its industry will berevoked by the Ministerwithout any priorwarning. Paragraph 3......... ( Tobecontinued ) ===(D)==~ 29A PROCEDURE ON THE IMPOSING OF ADMINISTRATIVE SANCTIONS ON BUSINESS PERMIT HOLDERS OF FOREST PRIMARY WOOD INDUSTRY PRODUCTS (Forestry Minister Regulation No. P.17/Menhut-II/2009, dated March 6, 2009) {Continued from Business News No. 7877 pages 27A-34A] Paragraph 3 Procedure onthe Imposingof Sanction in the Form of Revocation of PermitIssuedby the Governor Article12 (1) Imposingof sanction in the form of permit revocation asmeant in Article8 paragraph (1) lettersa thru h on Wood IPHH having a capacity of up to 6.000 (sixthou sand)cubicmetersannually shallbe based on the re sultof anInvestigation Team eStablished by the Head of Provincial Service and its result is set forth in an Investigation Report. (2) If the resultof the investigation set forth in the Investi gationReportproved that the PermitHoldercommit ted the violation meant in Article Sparagraph (1) let ters a thru h, the Head of Provincial Service shall issue a FirstWarning Letter (SPPt) in writing. (3) Onthe written warning referred to in paragraph (2), the PermitHolder shall respond with reasons in accor dance with the substance of the warning before the expirationof the FirstWarningLetter (SPPt) period. (4) If the PermitHolderdid not respond Within the stipu lated period,or gavea response but stating reasons not in accordance with the substance of the wamiog,t a Second Warning Letter (SPKd) will be issued with a time intervalof 30 (thirty) work days. (5) If the PermitHolderdid not respond within the stipu lated period,or gavea response but stating reasons not in accordance with the substance of the warning, then a Third Warning Letter(SPKt) will be issued with a time intervalof 30 (thirty) work days. Business News 7887/11-23-2009 (6) If thesubstance of the response isacceptable, the Head of Provincial Service will issue a cancellation of the SPPt or SPKd or SPKt, and if within a period of 14 (fourteen) work daysfrom receiving the substance of the response a cancellation was not issued, the SPPt or SPKd or SPKt is declared cancelled by law. (7) If the PermitHolderdid not respond within the stipu lated period, or gave a response but stating reasons not in accordance with the substance of the warning, the Headof Provincial Service shall propose for a re vocation of the permit to the Governor accompanied with a draft of decision for the revocation With all of the SPPt, SPKd, and SPKt. (8) Based on the proposal meant in paragraph (7), the Governor shall issue a decision on permit revocation. Article13 (1) In the event there isa suspected violation asmeantin Article8 paragraph (1) letter g, the Head of Provincial Service will request for an Investigator, preferably a CivilGovernment Investigator, (PPNS) to perform an investigation in accordance with prevailing provisions. (2) Based on the resultof the investigation referred to in paragraph (1), andif therearesutfldentevidences on the suspected violation stated in Article8 paragraph (1) letter g, it shall be followed-upwith an investiga tion and recording of tihe case. (3) During the investigation and recording period, the In vestigatorshall propose to the Head of Provincial Ser viceto issue a letter onTemporary Freezing of Opera tions (PSO). (4) Based ..... (4) Based on the proposal of the investigator referred to in paragraph (3), the Head of Provincial Service shall issue a Letter on Temporary Freezing of Operations (PSO) for a maximum of 40 (forty) days. (5) If before the endof the 40(forty) days the Investigator states that therearenotenough evidences, the Inves tigator shall propose for a cancellation of the PSO to the Headof Provincial5ervice, andthe Head of Provin cial 5ervice shall issue a letter on the cancellation of the PSO. (6) cancellation of the PSO referred to in paragraph (5) shall notstopthe investigation process bythe Investi gator. (7) Ifan industry business permitholderisstated asbeing proved to have committed the criminal violation re ferred to in Article8 paragraph (1) letter g by a court decision, then the business permitof its industrywill be revoked by the Governor Without any prior warn ing. Paragraph 4 Procedure on the Imposingof sanction in the Form of Revocation of Permit Issued by a Regent/Mayor Article14 (1) In the event the provision of permit for Wood IPHH with a capacity of up to 2,000 (two thousand) cubic meters annually is delegated to the Regent/Mayor, imposing of the sanction referred to in Article8 para graph (1) letters athru h onWood IPHH shall bebased on the resultof an InvestigationTeam established by the Head of Regency/City Service, andits result isset forth in anInvestigation Report. (2) Ifthe resultof the investigation setforth in the Investi gationReport proved that the PermitHolder commit ted the Violation meant in Article8 paragraph (1) let ters a thru h, the Head of Regency/City 5ervice shall Business News 7887/11-23-2009 30A issue a FirstWarningLetter (SPPt) in writing. (3) On the written warning meant in paragraph (2), the Permit Holdershall respond with reasons inaccordance with the substance of the warning beforethe expira tion of the FirstWarningLetter (SPPt) period. (4) If the PermitHolderdid not respond within the stipu lated period,or gave a response but stating reasons not in accordance with the substance of the warning, a 5econd Warning Letter(SPKd) shall be issued with a time intervalof 30 (thirty) work days. (5) In the event the PermitHolderdid not respond within the stipulatedperiod, or gavea response but stating reasons not in accordance with the substance of the warning, then a Third Warning Letter (5PKt) shall be issued with a time interval of 30 (thirty) workdays. (6) Ifthe substance of the response isacceptable, the Head of Regency/City service shall issue a cancellation of the SPPt or SPKd or SPKt, and if Within 14(fourteen) workdays fromreceiving the substance of theresponse no cancellation is issued, the SPPt or SPKd or SPKt is declared cancelled by law. (7) If the PermitHolderdid not respond within the stipu lated period,or gavea response but stating reasons not in accordance with the substance of the warning, the Head of Regency/City serviceshallpropose for a revocation of the permit to the Regent, accompanied with a draft of the cancellation of the decision with all of the SPPt, SPKd, and SPKt. (8) Based on the proposal referred to in paragraph (7), the Regent will issue a decision on permit revocation. Article 15 (1) In the eventthere isa suspected violation asmeantin Article8 paragraph{1) letter g, the Head of Regency/ City5ervice will requestfor anInvestigator, preferably a Civil Government Investigatorto perform an investi gation in accordance with prevailing provisions. (2) Based..... (~) Based onresultof the investigation stated inparagraph (1), and if there are sufficientevidences on the sus pected violation stated inArticle 8 paragraph (1) letter g, it shall be continued with an investigation and re cording of the case. (3) During the investigation andrecording period, the In vestigator shall propose to the Head of Regency/City service to issue a Letter on Temporary Freezing of Operations (PSO). (4) Based on the proposal of the investigatorreferred to in paragraph (3), the Head of RegenCY/City service will issue a Letter on Temporary FreeZing of Opera tions (PSO) for a periodof a maximum of 40 (forty) days. (5) Ifbefore the endof the40 (forty) days theInvestigator states that therearenotenough evidences, the Inves tigator shallpropose for a cancellation of the PSO to the Head of Regency/City service, and the Head of Regency/City service shall issue a letter on the can cellation of the PSO. (6) Cancellation of the PSO referred. to in paragraph (5) shall not stopthe investigation process by theInvesti gator. (7) Ifan industry business permitholderisstated asbeing proved to havecommitted the criminalviolation re ferred to in Article 8 paragraph (1) letter g bya court decision, then the business permit of its industrywill be revoked by the Regent/Mayor without any prior warning. OiAPTERIII INVESTIGATION REPORT (BAP) Article16 (1) The Investigation Report (BAP = Berita Acara Pemeriksaan) referred to inArticle10 paragraph (I), Article 12 paragraph (1), andArticle 14 paragraph (1) shall becompiled with the following contents: Business News 7887/11-23-2009 31A a. Title. b. Day, date, month,andyearof investigation. c. Basis of the performance of investigation (DutyOr der Letter fromthe authorities). d. Names andpositions of Investigating Team mem bers. e. Names andpositions of Permit HolderParty accom panying the investigation. f. Results of investigation, covering among others: 1. Objectof investigation; 2. Location of investigation; 3. Timeof investigation; 4. Method of investigation; 5. Kind of actions. g. Closing phrases. h. Signatures of the InvestigatingTeam and the Investigated Party accompanying the inves tigation. (2) BAP mustcontain definite mattersandnot those that aresuspected haVing a naturethat arestill asanesti mate; e.g.about, probaply, moreor less, etconViola tionsthat mustundergo asurvey/testing of woods log by logor pieceby piece. Article17 (1) Before signing the resultof the investigation set forth in the BAP, the BAP must be read in theappearance of the partiesto sign the investigation result soasto know its content, andthento sign it. Example of the compi lation of BAP is as set forth in Attachment - I of this Regulation. (2) If the investigated party refuse to sign the Inves tigation Report, then. a Closing Report shall be compiled stating the reasons for the rejection. Example of the compilation of a BAP Closing Re port is as set forth in Attachment - II of this Regu lation. CHAPTER IV..... CHAPTERJV O-OSING PROVISIONS Article18 Withthe stipulation of this Regulation, Decision of the Forestry Minister No.6887jKpts-TIj2002 in conjunction with No. l0031/KPTS-II/2002 andNo. 59/Kpts-II/2003 con ceming Procedure onthe Imposing ofAdministrative sanc tions onViolations of Business Permit on the Utilization of Forest Products, Permitfor the COllection of Forest Prod ucts,and Business Permitfor Forest Product Primary In dustry,- to the extent it involves sanctions on Wood IPHH andIUIPHHK -, isdeclared asnot validanymore. Article19 This Forestry MinisterRegulation commences to cometo effect from the dateof stipulation. Forpublic cognizance, this Forestry Minister Regu lation shallbe announced in the StateGazette of the Re public of Indonesia. Business News 7887/11-23-2009 32A Stipulated in Jakarta OnMarch 6,.2009 FORESTRY MINISTER, sgd. H. M.S. KABAN Enacted in Jakarta On March 24, 2009 MINISTER OF LAW AND HUMAN RIGHTS OFTHE REPUBLIC OF INDONESIA, sgd. AND! MATTALATTA STATE GAZETTE OFTHE REPUBLIC OF INDONESIA YEAR 2009NO. 47 ===(D)==~ d. Woodchip .