Government Regulation No. 24/2010 on the use of forest areas

Article 1 aged forest areasasa result of the use of for- Referred to in this Government Regulation est areas to enable it to function optimally ac- as-: cording to its appropriation. L Forest is an integrated whole ecosystem in the 10. Minister is the minister carrying out government form ofan expanse of land containing bio natu- affairs in the forestry field. ral resources dominated by trees in a natural

Article 2 environmental unit which can not be separated The use of forest areas is aimed at control- one from another. ling the use of part of forest areas for non-forestry 2. Forest area is a certain area designated and/or development activities. declared by the Government as pennanent for- est. ArticJe3 3. Production forest is a forest area whose main (1) The use of forest areas as I eferred to in Article function is to produce forest products. 2 can only be done in 4. Protected forest is a forest area whose main a. production forest areas; and/or function is to protect a life-supporting system b. protected forest areas. to regulate water sources, prevent floods, con- (2) The use of forest areas as referred to in para- trol erosion, avoid sea water intrusion, and main- graph (1) shall be done without altering the main tain land fertility. function of forest areas by observing borders 5. The use of forest areas is the use of part of and certain period as well as environmental con- 'forest areas for non-forestry development ac- servation. tivities without altering the function and appro- (3) Further provisi!lns !In borders and certain pe- priation of the forest areas. riod as well as environmental conservation as 6. The non-commercial use of forest areas is the referred t!l in paragraph (2) are to be proVided use of forest areas for non-profit activities. f!lr in the regulation of the Minister. 7. The commercial use of forest areas is the use of forest areas for profit-making activities. Article 4 8. Reforestation is the effort to plant types of for- (1) The use of forest areas for non-forestry de- est trees on damaged forest areas in the form velopment actiVities can only be done for of idle land, coarse grass, or bush to restore activities which have inevitable strategic the function of forest. aims. Business News 7940/4-9-2010 C2lThe........ 13A (2) The non-forestry development activities as re- b. in protected forest areas only mining with ferred to in paragraph (1) cover: underground pattern can be done on condi- a. religious activities; tion it must not lead to : b. mining; 1. a decline in land surface; c. power plants, transmission, and power dis- 2. a permanent change in the main function tribution, as well as new and renewable en- of forest areas; and ergy teChnology; 3. a damage to ground water aquiver. d. telecommunication networks, radio broad- (2) Further provisions on underground mining in pr0- cast station, and television relay station; tected forest are to be provided for in. a Presi- e. public roads, toll roads and railway tracks; dential Decree. f. transportation facilities other than public transportation facilities for the transport of CHAPll:Rn products; FORESTAREA USE PERMIT g. water resource facilities and infrastructures, Part One water installation networks, and dean wa- General ter and/or waste water channels; Article 6 h. public facilities; (1) The use of forest areas shall be done based on L forestry-related industry; forest area lend use permits. j. defense and security; (2) The forest area lend use permits as referred to Ie. public safety-supporting infrastructure; or in paragraph {1} can be done with : L temporary shelters of natural disaster vic- a. forest area lend use permits with land com- tims. pensation, for forest areas in provinces whose forests cover an area of less than ArticleS 300/0 (thirty percent) of river basin areas, (1) The use of forest areas for mining activities as islands, and/or provinces, on condition the referred to in Article 4 paragraph (2) letter b land compensation with a ratio of at least 1 shall be done on condition: to 1 for non-commercial purposes and of at a. in production forest areas the following min- least 1 to 2 for commercial purposes; ing activities can be done: b. forest area lend use permits with compen- 1. mining with open mining pattern; sation of paying non-tax state fees on the 2. mining with underground mining pat- use offorest areas and planting trees within tern; the framework of rehabilitating river basis BusinessNews 7940/4-9-2010 areas........ 14A areas, for forest areas in provinces whose (4) Further provisions on the land compensation forests cover an area of more than 30 % ratio as referred to in paragraph (2) letter a (thirty percent) of river basin areas, islands, and the tree planting ratio within the framework and/or provinces, on condition: of rehabilitating river basin areas as referred 1. The use of forest areas for non-commer- to in paragraph (2) letter b point 2 are to be cial purposes is subject to compensation Jlrovlded for ina regulation ofthe Minister. of paying non-tax state fees on the use of forest areas and planting trees within Article 7 the framework of rehabilitating river ba- (1) The Minister shall issue forest area lend use sin areas with a ratio of 1 to 1; permits as referred to in Article 6 based on ap- 2. The use of forest areas for commercial plications. purposes is SUbject to compensation of (2) The Minister can delegate the authority of issu- paying non-tax state fees on the use ing forest area lend use permits with certain of forest areas and planting trees areas to governors for the development of non- within the framework of rehabilitating commercial pUblic facilities. river basin areas with a ratio of at least (3) Further provisions on the delegation of author- 1 to 1; ity as referred to in paragraph (2) are to be c. forest area lend use permits without land provided for in a regulation of the Minister. compensation or compensation ofpaying non- tax state fees on the use of forest areas and Article 8 without planting trees within the framework . (1) Forest area lend use permits for the use offor- of rehabilitating river basin areas, on condi- est areas for mining that has a significant im- tion only for: pact, wide scope and strategic value can only 1. state defense, marine orair traffic safety, be issued after obtaining approval from the check dam, reservoir, sabo, and meteo- House of Representatives. rology, climatology and geophysics; (2) Further provisions on the criteria of significant 2. survey and exploration. impact, wide scope and strategic value as re- (3) If in the exploration as referred to in paragraph ferred to in paragraph (1) are to be laid down in (2) letter c point 2 "ruah" sampling is conducted a regulation of the Minister after consUlting the as part of mining test in the interest of eco- ministry carrying out government affairs in the nomic feasibility it shall be subject to provisions environmental field and the ministry carrying out in paragraph (2) lettera or b point 2. government affairs inthe mining field, Business News 7940/4-9-2010 Part Two...... Part Two (4) If the applications meet requirements as re- The Procedures and Requirements of ferred to in paragraph (3) for survey and ex- Applying for the Use of Forest Areas ploration, the Minister shall issue forest area Artidi! 9 lend use permits without permits in principle. (1) Applications as referred to in Article 9 para- graph (1) shall be filed by: Article 11 a. minlsteJ:$or officials equivalent to ministers; (1) Permits in principle for the use of forest areas b. governors; as referred to in Article 10 paragraph (3) are Co regents/ mayors; ISsuedfor a maximum of 2 (two) years since the d. boards of directors of corporate bodies; or date of issuance and can be extended based on e. heads of foundations. the results of evaluation. (2) Applications as referred to in paragraph (I) shall (2) The permits in principle as referred to in para- meet requirements graph (I) contain obligations that must be ful- a. administrative; and filled by applicants. b. technical. (3) The obligations as referred to in paragraph (2) (3) Further provisions on administrative and tech- cover: nical requirements as referred to in paragraph a. setting the borders of approved forest ar- (2) are to be provided for in a regulation of the eas and compensation land as well as decla- Minister. ration process; b. making an investory of stands; Artidel0 c. making a statement of readineSs to pay non- (I) Based on Applications as referred to in Article 9 tax state fees on the use of forest areas and paragraph (I) the Minister shall make evalua- plant trees within the framework of rehabili- tion. tating river basin areas, ifcompensation is in (2) If the results of evaluation as referred to in the form ofpaylng non-tax state fees on the paragraph (I) indicate that the applications do use of forest areas and planting trees within not meet requirements, the Minister shall issue the framework of rehabilitating river basin letters of rejection. areas; (3) If the results of evaluation as referred to in d. handing over and reforesting land as forest paragraph (I) indicate that the applications areas if compensation is in the form of land; meet requirements, the Minister shall issue per- and mits in principle for the use of forest areas be- e. carrying out other obligations set by the Min- fore issuing forest area lend use permits. ister. Business News 7940/4-9-2010 Article 12...... 16A Artide12 c. carrying out reforestation in compensation land; (1) Holders of pennits in principle for the use of for- d. protecting forests; est areas can apply for dispensation to the Min- e. carrying out reclamation and/or reforestation ister. in lend use forest areas which are no longer (2) The dispensation as referred to in paragraph (1) used; and is given for urgent activities which if delayed f. carrying out other obligations set by the Minis- may inflict losses on the state. ter. (3) The dispensation as referred to in paragraph (1) is given for as maximum period as permits in Article 16 principle for the use of forest areas. Based on forest area lend use permits, per- mit holders can cut down trees within the frame-

Article 13 work of land clearance by paying compensation for If holders of permits in principle for the use stands, fees on forest resources, and/or refores- of forest areas have met all the obligations as re- tation funds according to the law and regulation. ferred to in Article 11 paragraph (3) the Minister shall issue forest area lend use permits. Article 17 The holders of forest area lend use permits are prohibited to :

Article 14 a. transfer forest area lend use permits to other Further provisions on the procedures of ap- parties without approval from the Minister; plying for the use of forest areas are to be pro- b. use lend use forest areas as collateral to other vided for' in a regulation ofthe Minister. parties. Part Three Part Four The Obligations of Holdersof Permit Period Forest Area Lend Use Permits Article 18

Article 15 (1) The period of forest area lend use permits is The holders of forest area lend use permits the same as the licencing period according to shall : their fields and is based on the law and regUla- a. pay non-tax state fees on the use offorest ar- tion. eas; (2) If the period of forest area lend use permits b. plant trees within the framework of rehabilitat- for activities do not require licencing accord- ing river basin areas; ing to theirfields, forest area lend use permits Business News 7940/4-9-2010 are . are issued tor a maximum of 20 (twenty) years (3) Further provisions on monitoring and evaluation and can be extended based on the results of are to be provided tor in a regulation of the Min- .,...ation. ister. (3) The period of ~ . . . lend use permits for statet:lefense, marine Of" air traffic safety, pub- CHAPTER IV tic I"OlIds, plAblicrailway tracks, c::hec:kdams, res- lliEABOlITlONOFPEaMITS ervoirs, sabo and meteorology, dimatMogy and IN PRINClPlEORPERMITS geophysics as well as religious activities shall Artide20 be valid as long as they are used to serve the (1) Permits in principle for the use of forest areas interests in question. as referred to in Article 10 paragraph (3) or (4) The Minister shall evaluate forest area lend use forest area lend use permits as referred to in permits as referred to in paragraphs (1), (2) Article 13 shall be declared null and void if : and (3) once every 5 (five) years or any time if a. the period of permits in principle for the use needed. of forest areas or forest area lend use per- (5) If based on the results of evaluation the hold- mits has expired; ers of forest area lend use permits no longer b. revoked by the Minister; use forest areas according to forest area lend c. returned voluntarily by the holders of per- use permits, the forest area lend use permits mits in principle for the use of forest areas shall be revoked. or forest area lend use permits to the Minis- ter before the validity period has expired OfAPTERm through a written statement; or MONIrORINGAND EVALUA1JON d. lend use forest areas have their appropria-

Article 19 tion changed into non-forest areas or have (1) The Minister shall monitor and evaluate: their function changed into forest areas the a. holders of permits in principle for the use of use of which is banned according to the law forest areas; and regulation. b. recipients of dispensation on forest area lend (2) The revocation as referred to in paragraph (1) use; and letter b is done if the holders of permits in prin- c. holders of forest area lend use permits. ciple for the use of forest areas or forest area (2) In carrying out monitoring and evaluation as lend use permits are subject to sanctions under referred to in paragraph (1), the Minister can this Government Regulation. delegate the tasks to appointed officials or gov- (3) Based on the voluntary handover as referred ernors. to in paragraph (1) letter e, the Minister shall Business News 7940/4-9-2010 issue . 18A issue decisions on the revocation of permits in abolished or reclamation activities are consid- principle for the use of forest areas or decisions ered successful. on the revocation of forest area lend use per- (4) If until the time limit as referred to in paragraph mits. (3) the permit holders whose permits are abol- ished have not taken out the movables from

Article 21 forest areas, the movables shall be put to auc- (1) The abolition of forest area lend use permits as tion according to the law and regulation. referred to in Article 20 shall not exempt the holders of forest area lend use permits from the Article 22 obligations to : Further provisions on the abolition of per- a. pay non-tax state fees on the use of forest mits are to be proVided for in a regulation of the areas; Minister. b. plant trees within the framework of rehabili- tating river basin areas or reforesting com. CHAPTER V pensation land; SANCTIONS c. carrying out reclamation and/or reforesta- Article 23 tion in lend use forest areas which are no The holders of forest area lend use permits longer used; that do not meet the obligations as referred to in d. paying compensation for stands, fees on fo r- Article 15 or commit the violation as referred to in est resources, and/or reforestation funds Article 17 shall have their forest area lend use per- according to the law and regulation; mits revoked by the Minister. e. carrying out other obligations set in the for- est area lend use permits. Article 24 (2) At the time when forest area lend use permits Further provisions on the procedure of im- as referred to in paragraph (1) are abolished, posing the sanction as referred to in Article 23 the ownership of immovables including trees in are to be provided for in a regUlation of the Min- lend use forest areas or movables shall be de- ister. cided according to the law and regUlation. (3) The movables which according to the law and CHAPTERVI regulation as referred to in paragraph (2) be- TRANSlTIONALPROVISIONS long to the permit holders shall be taken out Article 25 With the coming into force of this Govern- of the forest areas by the permit holders no later than 6 (six) months after the permits are ment Regulation; Business News 7940/4-9-2010 a. Permits....... 1M a. Permits in prindple for the use of forest areas Promulgated in Jakarta which have been issued by the Minister before on February 1, 2010 the coming into force ofthis Government Regu- THE MINISTER OFLAWAND HUMAN RIGHTS OF lation and have met all the obligations set in the THE REPUBl1COF INDONESIA, permits in prindplecan constantly be processed sgd. into forest area lend use permits by fulfilling PATRIAUSAKBAR obligations under this Government Regulation. b. Forest area lend use permits or contracts made STATUTE BOOKOFlHEREPUBlICOFINDONESIAOF befOre the coming into force ofthis Government 2010 NO.30 Regulation shall remain valid until the expiry of the forest area lend use permits or contracts, except in the case of a change in the appropria- ELUCIDATION tion or function of forest areas. OF GOVERNMENT REGULATION Artide26 NO. 24/2010 With the stipulation of this Government ON Regulation, implementation regulations concerning THE USE OF FOREST AREAS lend use forest areas shall remain valid, provided they do not contradict this Government Regulation. As one of the deciding factors oflife-supporting CHAPTERVII system forests must be maintained optimally with CXlNCI.lJSI'ON

Article 27 adequate area and guarded to conserve their This Government Regulation shall come into supporting capadty. Forestry development is an force as from the date of promulgation. integral part of the national development so that For public cognizance, this Government it must be in accordance with the dynamics of Regulation shall be promulgated by plating it in the the national development. Statute Book of the RepUblic of Indonesia. The use of forest areas is aimed at controlling the use of part of forest areas for non-forestry Stipulated in Jakarta development without altering the main function . on February 1, 2010 of forest areas. THEPRESlDENTOFTHE REPUBlICOFINDONESIA, The use of forest areas for non-forestry devel- sgd. opment can only be done in production forest DR. H. SUSILO BAMBANG YUDHOYONO areas and protected forest areas. BusinessNews 7940/4-9-2010 Non·forestry . 20A Non-forestry development that can use forest Paragraph (3) areas cover religious activities, mining, power SUfficiently dear. plant, transmission and distribution networks as well as new and renewable energy, telecommu- Article 4 nication networ1<s, radio broadcast stations, tele- Paragraph (1) vision relay stations, publicroads, toll roads, rail- Referred to as "activities that have strate- way tracks, transportation facilities other than gic aim" are activities that are prioritized because public transportation facilities for the transport they have a very important national influence on of products, water resource facilities and infra- state sovereignty, state defense and security, eco- structures, water installation networks, and nomic growth, socio-culturallife and/or the envi- clean water and/or waste water channels, pub- ronment. lic utilities, forestry-related industries, defense and security, public safety supporting facilities Paragraph (2) or temporary shelters of natural disaster vic- Applicants must propose non-forestry de- tims. velopment activities according to the law and regu- The use of forest areas must consider the bor- lation. ders of areas, certain period of time and envi- ronmental conservation. Letter a Religious activities include place ofworship, n. ARTICLE BY ARTICLE funeral place, and spiritual tourism.

Article 1 and Article 2 Letter b Sufficiently clear. Mining activities include natural oil and gas, mineral, coal and geothermal mining.

Article 3 Paragraph (1) Sufficiently clear. Letter c up to Letter i Sufficiently clear. Paragraph (2) The area of forest areas used for the issu- Letterj ance of lend use forest area permits is limited to Defense and security activities include ensure forest conservation and business survival combat training ground, radar station and spy in the forestry sector. tower. Business News 7940/4-9-2010 Letterk...... 21A Letter k Paragraph (4) Public safety supporting infrastructures in- The regulation of the Minister must at least clude marine and traffic safety, and meteorologi- carry : cal, dimatological and geophysical facilities. a. types of trees planted; and b. location to be rehabilitated. Letter, SUfficiently dear. Article 7 and Artide 8 SUfficientlydear. Artide5 SUfficiently dear. Artide9 paragraph (1) Letter a up to Letter c Artide6 Sufficiently dear. Paragraph (1) SUfficiently dear. Letter d Referred to as "corporate bodies" are: Paragraph (2) 1) state-owned companies; Letter a 2) regional government-owned companies; The location of compensation land is set ac- 3) private companies with Indonesian legal entity; cording to or integrated with a change in the spa- 4) permanent business establishments; tiallayout plan. 5) cooperatives. Letterb Letter e SuffICiently dear. Sufficiently dear. Letter c Paragraph (2) and Paragraph (3) Point 1 Sufficiently clear. Sufficiently clear.

Article 10 up to Artide 18 Po/nt2 Sufficiently dear. Referred to as "sulVey and exploration" in- dude mining and archeological activities. Artide19 Paragraph (1) Paragraph (3) Monitoring is done as part of efforts to nur- Referred to as "ruah sampling~ is a mining ture holders offorest area lend use permits in or- exploration ac:tivity totake mineral and aJar samples. derto meetobligations set forth in the permits. Business News 7940/4-9-2010 paragraph (2)........ 22A Paragraph (2) and Paragraph (3) b. lend use permits are issued for mining activities 5utndenUy dear. in production forest or protected forest which later changes Into conservation forest.

Article 20 Paragraph (i) Paragraph (2) and Paragraph (3) Letter a up to lelter c Suffic:enUy dear. ~tydear. Artide 21 up to Article 27 lelterd SUfficienUy dear. A ch,lnge in the funcUon of fon!stIlls for instance: SUPPLEMENTTOSTAlUTEBOOKOFTHEREPUBUCOF a. lend use permits are Issued for open mining ac- INDONESIA NO. 5112 tivities in production forest which later changes into protected forest. -===(5)===- Business News 7940/4-9-2010 Procurement.....;...