Regulation of the Minister of Forestry No. 23/Menhut-II/2007 on procedure for application for Business Licence for Utilization of Timber Forest Crop on People’s Cultivated Forest in Cultivated Forest

12A PROCEDURE FORAPPUCAnON FOR BUSINESSUCENSE FOR UllUZAll0N OF TMBER FOREST CROP ONPEOPLE'S CULllVATED FOREST IN CULTIVATED FOREST (Regulation of the Minister of Forestry No. 23/Menhut-II/2007, dated June 25, 2007) MINISTER OFFORESTRY, Considering: a. that based on Article 40, paragraph 91) Government RegulatIOn NO.6 Year2007, rnnc:emlng forest ~tt!m andCompilation c:f ForestManagement Plan andutili zation of Forestdetennlnesthat utilizationof forest in producing forest is inplemented bygrantc:f license sld1 asBusiness L.lcense for utilization ofTimberForest Crop in Cultivated Forest; b. that Business lJcense for Ubllzation of limber Fnnod' 00p(RJPHHK) as referred to in lettera, maybe granted to thekx:al mnV11lmtty, both indivicluallyandingroup In the fonn of IUPHHK in People's Cultivated Forestin the mntext: of giving access to utilize forest more exten sIVely' by the IoccII wmmunity for better improvement; c. thatwith respectto the above, It isnecessary to stipu late Procedure for Application for Business Ucense for utilizationof TimberForestCrop Inthe People's Culti vatedForestin Cultivated Forest by RegUlation of the Minister. InYiewof: 1. LawNo. 5Year 1990, concerning Preservation ofBio Iogieal Natural Resources and its Ecosystem; 2. LawNo. 23Year 1991concerning Management of Uv IngEnvIronment; Business News 7191-7192/4-1-2009 3.. LawNo.41 Year 1999 (BNNo. 6412PilflB$1A - 6A andso forth)mncerningForestry Inconjunction with No. 19Year 2004; 4. Law No. 32 Year 2004(BNNA 7ZII3pages.IA-.t.IA), WI~lillg Regional Government, 5. Government Regulation No.21Year 1999(BNNo. 6442 pages.t0A-.t2A and$0 forth) concerning Analysis of Impacton living Environment; 6. Government Regulation NO.44 Year 2004 concerning ForestryPlanning; 1. Government Regulation No.45 Year 2004 concerning Fonost Protection; 8. Government Regulation No.6Year 2001, concerning Forest SystemandStructure of ForestManagement andForestUtilization; 9. PresIdential Deaee of RIno.187/M Year 2004 (BN lID. 7~28JIII!1O$ 3IJA-3L4}conceming establishment of IndOnesia Bersatu cabinet in conjunction withNo.171/ Myear 2005; 10. Presidential Regulation of RI No.9 year 2005 (BN ND. 7~82pages 2A ..23A) concerning capacity, DUty, Function, organlzatJonal Slrul;lure and Work Procedureof the State Ministry of RI as amended several times and lately amended by Number 66 Year 2006; 11. Presidential Regulation No.10Year 2005,concerning Organizational UnitandDuty d Echelon I of the state Ministry cI RI, as amended several times and lately amended by No. 91 Year 2006; 12. Decision .. 13A 12. Decisiond the Minister of Forestry No. ~06/Kpts-II/ 1995. concerning Technical Guideline forImplementa tion d Indusbial OJItIvated Forest; 13. DecIsion of the Minister of Forestry No. 1n/Kpts-1I/ 2003conc::eming Crtteria and Indicator fOr Preserved Forest Management 1n 8usiness ManagementUnit in UtilI2ation d CuItivab9d~; 14. Regulation dthe MInIStI!t of;Forestry No. P.13/Menhut D/2005 00IlCi!N1Ing OfpnIzatian·stnJcture andWOl'k Ing Procedure of the Department of Forestry as amended!eVeftil timesandlatetyarneI ided byNo.P.71/ MenhuHI/2006. DeCI DES: Tostipulate: REGUlATION OFTHE MINISTER OF FORESTRY ON PRO CEDURE FDRAPPUC'ATION FOR BUSINESS UCENSE FOR U11L.IZATION OFTlMBERFORESTCROP IN PEOPlFS QJL llVAlED FORESTINQJL1lVAlED FOREST OW'TERI GENERAL PROVISION Article 1 WhatIs meant inthis Regulation by: 1. People0JItivated Foresthereinafter referred toasHTR iscultivatedIbre!it in produang fOrest estabtlShed by individuals or cooperatives for Improvementof poten tiality andquality rI producing forest by applying siM culture In the contextof securing preserved forest re sources. Business News7791-7792/4-1-2009 2. BusiIleS5 ueense for UtilizationofTmber ForestCrop inPeople'sOJItivated ForestIn-Cultlvated Forest here- - 1na1ler Ieferred to asWPHHK-HTR isbusiness license granted to utilize timberforestaop incultlvated forest InprodUCing forestesl:abllshed byindividuals or c0op eratives tDImprove potEhtiallty andquaIlly ofproctuc Ing forest by applying stlvk:ulture Intfle securing pre served forest resources. 3. BusinessWorkPlan for UtIlization rl11mber ForestCrop InPeople CUltivated Forestincultivated forest herein after referredto as-RKUpf-tHK HTR Is1NOl'k plan for the entire WPHHK,;,H1R work. areas Inone Regency/Mu nidpallty region andIsvalldwithin the license validity, sud1 as referringtoaspects for preservation activities, environmental proport:k>nale as sodaleconomyas rati necI by ltle RegenttMayor. 4. Annual Business WOrk Plan for Utilization of TImber Forest Cropin People's Cultivated Forest InCultivated Forest hereinafter refeneel to as RKTisworkplancorn piled in consolidation In one groupand/or coopera tiveslicense holderforone(1) yearperiod, which c0n stitutes application of the RKUPHHK-HTR. 5. Groupis group of fanners individuals inan organiza tion deveq)ed based on togetherness, same profes sion andInterestto (l)Operate indeveloping cultivated fOreSt~ for the ,wetrare ottnetrfamllles. 6. Cooperatives is primarycooperatives dulyestablished and having membersaxnpfisIng individuals asreferred to In Law No. 25Year1992concerningCooperatives. 7. The..... 7. The local community is thecommunity M1g In and/or around theforest assodaI CClI'M'IUnlty unit which main wayrllMng depends on theforestandforestaop. 8. HeaCI ~ familY IS InatYklUal granted BUSiness ueense to utilize 11mber Forest Crop in People's OJItIvated Forest inCUltIvated Forest. 9. Individual is Indonesian citizenwho is capable to take ac:DoI'I by'laW. 10. Stipulation of HTR area is reservation rI forest: zone areaby the Ministerrl Forestry forpeople's oolt:ivated forest location. 11. ForestDevelopment Financing Body (BP2H) is lNOI'king unftrlthe Departmentd Foresby thatapplies Pattern for AoandalManagementof Public 5erviceAgency to provide service In the form rl provision of fund for forestdevelopme~ name/ytotheHTR participants. 12. Minister Isminister assigned thedutyand re5pOflSlbil ity in the fieldd forestry. 13. DlredDr General is directorgeneralassigned theduty andrespons1blHty in thefield rl Producing Forest Man agement. 14. Provlndal5efvlceOfficeIS service officeassigned the duty andresponsibility inthe field of forestry in PnMn dal region. 15. Regency/Municipality Service Office Is service office assigned the duty and responsibility In Business News 7791~7792/4-1~2009 14A the field offorestry In Regency/Municipality region. 16. Technical Operating Unit(UPT) is technical operating unitexJ5t:k1g underandI~ to tilt! Direl:1Dr Gen eralof Producing Forest Management. QotAPlERU ST1PULA11ONOFNIE.A ArtJde2 (1) The Minister d Foresby shaUallocate and stipulate KTR area In unproductive producing forest and not charged with license/other right and the location thereofIsgivenpriorityto close toforestaop Industry. (2) The allocatIOn and stipulated rI HTR area rel'erred to In paragraph(1) is reserved HTR areaandsubmitted to the Regent/Mayor. (3) The Regent/Mayor shaJl exercise orientation to the relevant villageonthe allocation andstipulation of the areareferred to In paragraph (1). (4) The orientation referred to in paragraph (3) may use convnunitv Self-Support InstituUon existing Inthe cen tral, Provincial or Regenc.yfMunidpality administration. OiAPERm ACTlVITIES AND PATTERN OF HTR Article 3 (1) ActMt:ies for userl timber forest aop in HTR in oolti vated forest cover land preparation, seedling, plant Ing, maintenance, harvestand marketing. (2) Plants produced from the UPHHK at HTR maybeinthe fonn fA assetof the holder of business license, and maybe placedascollateral to the extent thatthe busi ness license thereof is stili valid. Article4 ..... ArtIde4 Pattem of HTRcunststs of: B. Independent pMtem; b. Partnershippattern~ Co DewIcper patIer1l. 15A a. plants d the same spedes~ or b. Dlants withvarious species. (2) lYPe eX main plantsof the same types referred to in paRSQf8ph (1) tetter a Istirnber forest plants consist ing of only onetype (species) and its variety. NtideS (1) Independent Pall:emtfTRlefwred tDInArticle 4 letter a is H1R established by the i1Iml1y Head asholder of R.FtIIHfTR. (2) Partnership Pattern trTR IeferTed to In Artide -4 letter bIsHTRduly establishedby the FamUv Headas holder fA IUPHHK-ffiR together with his partner based on mutual.agreementfacilitated bythe government Inor dertodevelop partnership profitableto both parties. (3) DeveloperPattern tfTR referred to InArtIde4 letterc is KTR. dE!v@Ioped by BUMN or BUMS and further ~Ifv.. ered by theGovernment to the family Head applying for lUPHHf(..ffTllandthecost thereofshall be borne by the hoJderdIUPHHK-HlR to be reHnqulshed perlodi~ <3IIye«ec:tNe asof the DecisIon Letter r:l IUPHHK-HTR. is issued. (1) Developer refem!d to Inparagraph (3) is not holderof the IlJPHHK-HTR. (S) Further provision on the patternsof partnership and developerreferred to In paragraphs (2) and(3) shall be further govemecI in Regulation of the ()il"li!dQr Gen eral. OiAPTERIV SPEOES OF HTR MAIN PLAKTS Artide 6 (1) Spedes of mainplants that may beplanted for devel opmentof UPHHK·HTR ronslsts of: Business News 7791-7792/+1-2009 (3) Species of main plants of various types referred to In paraglilph (1) letterb is timberforestplants combined with perennial cutuvated plants bearing tinber, orother types asSljpUIated by the MInister. OlAPTERV REQUIREMENTSAND PROCEDURE FOR APPllCAllON PartOne Applicant Artide 7 (1) The partiesthat has the right to obtainIUPHHK~HrR are: a. indlvi::lual; b. cooperatives. (2) The cooperatives referred to in paragraph (1) letter b IscooperatiVes in micro,smalland medium business scale and established by the community IMng in or aroundthe forest. ArtideB {1} The requirements for apPlicatiOn submitted by indi vidual shall be: a. photoropy of Resident Identitycard; b. stntemcnt from the Village Head stating that the applicant domiciled in the village concerned; c. sketch of the areaapplied for. e2l Requirements· , ..• (2) Requirements for application submitted by coopera tives:: 8. photocopy of Deed of Establishment; b. statement from the Village Olief statingthat the cooperativesls~ by die kJaII oommunity; c. sketch~ the area applied for; or d. map of the area applied for an extenston of over 15 (fifteen) hectares on scale 1.5000 or iuo.oon, (3) Preparationof area sketch referredto inArtk:Ie 9 paraM graph (1) letterc andArticle 9 paragraph (2) letterC, shall be facilitated bytheforest infonnation service or official appointed by the Regent/Mayor. (4) Theareasketch applied for referred to in paragraph (1) letter c and paragraph (2) letter C, stateamong otherthings, Infonnation onthe governmentaladmin istr.mve area, the CXXX'd1nates and dear borders whk::h area extentcan beknown. Artide 10 Individual applicant forIUPHHK-HTR isgiVen pri orityto establiSh groupin orderto fadlitate service inpr0 cessingappliCation for licenSe. PartThree Procedure for Application Artide 11 (1) Individual or Leader of theGroup referredto inArticle 10, shall submitapplication for IUPHHK-HTR to the Regent through the Village Chief, on the alloc:atedand stipufated by !:he Minister referred to InArtlde2 pera graph (1). Business News 7791-7792/4-1-2009 lISA (2) The requirements referred to in ArtIcle 9 paragraph (1) and structure of the Group members must be at tachedto the application referred toin paragraph (1). (3) Based onthe applicatkm for IUPHHKYfTR referred to in paragraph (1) the Village Chiefshall verifythe au Ulefltk:ily of the requirements for appllcaUorJ by Indi vidual orGroup andmake recommendation to the Re geft/Mayorwith copytothe Sub-Disbid: 0Ilef and UPT. (4) The Head of tJPT based on the copy referred to In paragtaph (3) shaD verify the administrative require mentandsketchlmap of the area applied for bycoor dlnating withthe Forest lone Affirmation Bodyandthe reslft thereofmiS:be sutmittedto the Regentfor tech nical consideration. (5) Based on the recommendation of theVdlage Ollefand consideration of the Head of UPT, the Regent/Mayor shall proceed to the Governor to issue DecIsion on IUPHHK-HTR to theindividual or group onbehalfrl the Ministerwithropy to: a. the Minister; b. the Director Gt5lera1. (6) The Head of service OffIce of Province handling for estry shaJI report tothe MinisteJi recapitulate issue of Decistons of IUPHHK-HlRperlodicalty~ry three(3) months. Artide 12 (1) The Chairman of Cooperatives shall submit appli cationof IUPHHK-HTR to the Governor through the Regent! ... \. RegentJMayor ontheallocated and stiputated area as referred to in Article 2 paragraph {I}. (2) The application referred to in paragraph (1) at tached wtth the requirements referredto in Artide 9 paragraph 2 and structure of the cooperatives members. (3) Basedon the aDPJication for IUPHHK-HTR referred to In paragraph (1) the Village Otief shall verify theau thenticity ofthe CDOperatives membersandmake rec ommendation to the Regent/Mayor with copy to the SUb-DIstrittChiefandUPT. (4) The Head of UPT based on the copy referred to in paragraph (3) ~MII verify thP administrative rPquire rnentand the sketch/map of the areaapplied for by roorclinating withtheForestZone AffllTTlation Body and the result thereof shall besubmitted to theRegent for technicaJ consideration. (5) Based onthe recommendation of theVillage Chief, the Head of UP1;the Regent/Mayor shall i5Sue decision on IUPHHK-liTR tothe Cooperatives onbehalfof theMin isterwith copy to: a. the Minister; b. the Director GeneraJ. (6) The Head c:l5ervice Office of Province handling for esby sheil! report to the Minister; ra:apituldte i~ue ur Decisions of IUPHHK-HTR periodically everythree (3) months. 17A Altide 13 If the-areaapplied for HTR is located outside the areastipulated by the Ministeras referred to In Article2, the Regent shall propose the area to the Minister to be stipulated as HTR area. Article 14 IUPHHK-HTRshall be grantedfor 60(siXty years maximum. ArtIde 15 Business License for Utilization ofTimber Forest CropinPeople's Cultlvated Forestin cultivated forestmay not be sold and purchased, transferand inherited. Article 16 (1) The grantofIUPHHK-HTR referred to inArticle 11para graph (3) andArtide 12paragraph (3) mustbe sup ported bythe sketd1 of work area to area extentupto l~ (fifteen) hectares and map of work area up to 15 (fifteen) hectares. (2) Based on the sketch or mapof work area referred to In paragraph (1), the ForestZOne AffirmatiOn Body (BPKH) OfForestry Planning Body shall conduct mea suring and mapping. (3) The measuring andmapping referred toInparagraph (2.) maybe conducted by third party/consultant oper ating in the field of forestry, at the instruction of the Headof ForestryPlanning Body. (4) TheMinister maydelegate theauthorfty to measuring andmappingcI thewor1carea referred trl inparagraph Business News n91-7792/4-1-2009 (2) to ! III.," (2) to Regional Goverrment Unitassigned thedutyand function for measuring andmapping. (5) The fee for measuring andmapping referred toinpara graph (2) shall be on account of the Government. Q-WJTERVI GROUP INSTITUTlON AND FINANCE Part One Group Institution ArtIde17 (1) IncIivkIuaIIn the local communityshallestablisha Group fadIltated by the forestry infonnation service or agri culturaJ Infonnation serVice at Village kwel. (2) Each Group must have group name, dear group ad ministrator and regulation of the Group. (3) Regulation of the Group referred to in paragraph (2) wnIiIins among other things, the obJigations to imple mentHTR, security of the area, financeand relation shipinter-groups withinor the relevant vinage. 18A (2) PT"c)OOdure andrequirementfor application for loan of fund for development of tffR referred to inparagraph (1) shall complywith theapplicabte provision. a-tAPTERVll RIGHTS AND OBUGATIONS Article 19 Ihe hOJder (I' ilJt.lHHK-HTR haS the right to lICense activities, fadlty for obtainingfund and HTRdevelopment finance, managE!lltelll: and teehnicallnformation seMceand giving opportunity of markingforest crop. Artide 2.0 (1) Theholderof IUPHHK-HTRshall beobliged toprepare RKU IUPHHK-HlR and RKT. (2) The RKU IUPHHK-HTR and RKT referred to in para graph (l) shall be compiled by UPT or by conl;lIlt",nt operating in the ffektof forestryor byrornmunityself supportInstitutionoperating in the fieldof forestry. (3) fee for compiling RKUPHHK-1fTR and RKT referred to in p;lr.lgraph (2) shall be on account of the Govern ment. (4) The Regent, SUb-Disbict Chief andVillage 011ef shall raJllate the enfOlU5nentdthe instibJtion end upgrade capacity, cooperate withCommunity SeIf-5upport. In stIJJtj()n. PartTwo Anance Artide 18 (l) HTRdevelopment maybe financed through Finandal Management: Pattern of Forest Development Financ ingGeneral service Body. Business News 7791-7792/4-1-2009 (4) If the holder of IUPHHK-HT'R borrows from the HTR development fund from the BP2H, then the holderof IUPHHK-lfTR shall be obliged to settle the loan toBP2H andcomply with the prevailing statutoryregulation. OiAPTER VIII MANAGEMENTAND CONTROl Artide21 (1) TheDirector Generalshall exercise technical manage menton theimplementation of HTR development. (2) Technjcal"I!llI1! (2) Technical guidance for implementation of this regula tionshall be further governed by Regulation of the DI rector General. Artide22 (1) The Head 5e1'Vio! Officeof Province andHead of ser vtce Office of Regeocy/MunlclpalltY shall supervise and control implementation of the HTR development (2) The Head of BP2H shall controlandevatuate use ofthe loan fund for tfJ'Rdevelopment. (3) The Village Ollef shallsupeMse implementation of the HTR devekJpment activities. (4) Theoostformanagement, c:ontroI andsupervision shan be charged to the Government. OIAPTERIX REVOKED UCENSE Artide23 Business Uc:ense fur utilization ofTllTlber Forest Crop InPeopE's Cultivated Forest in euItivated fur'5 shall revoke on the groundthat: a. It Is returned backbythe to license holder; b. It is revoked by thE! licel1S@ grantor; c. ItsvaRdlyexpires; d. The individual holder of HTR dies. Artide24 The revocation OfIUPHHK-HlR referred to InAr ticle23 letter b shall take place if: Business News n91-7792/4-1-2009 19A 1. the lUPHHK-HTR is assigned withoutwrittenapproval from the grantor of license; 2. fallsto canyoutactivities in the ftekt withinone(1) year asof the date ItIsgranted; 3., railsw Impk~nentsifvicullun:: syslem in aa:DrtJarKE with the condltfon of the location; 4. failstocompile Iong-tennRKUPHHK withinone(I) year asof the grant thereof; 5. falls to prepare RKT Within two (2) months before the RKT current year; 6. leaving the work area; 7. is charged aintinal penally as referred to in Article 78 of LawNo.41 Year1999concerning Forestry or Isde clared bankrupt by the DistrIct Court. Article 25 RevocatIon of license referred to In Artide23,shall not revokethe obligation to settle the loanof the license holder. OiAP'TERX QDSING PROVISION Article 26 ThisRegulation takeseffectallthe date ft: Isstipu Iated. ~JIated In Jakarta OnJune 25, 2007 MINISTER OFFORESTRY Sgd. H.M.S. KABAN ===( MA )===