Forest Management Plans and Exploitation - Government Regulation

The Government's desire to see increasing capital investment across the board is a primary motivation behind the issue of Government Regulation No. 6 of 2007. The Yudhoyono Government has realized that to promote continuing economic development there is a need for strategic steps to be taken to increase investment and expedite development, particularly in the forestry sector. The Regulation is intended to facilitate economic and community growth in the areas that surround forest concessions.

The underlying theme of the Regulation is the promotion of good corporate governance in the management of forests. This is to be reflected in increased efficiency of forest management, which in turn will be evidenced in better preservation of current forest resources, prevention of degradation, and the increase in plantation initiatives.

The Regulation comprehensively addresses matters such as exploitation, rights, primary production, marketing, control, and administrative sanctions. The overall management of forest is to be based on a 'uniform forest management' (Kesatuan Pengelolaan Hutan/KPH) system that incorporates the elements of conservation, protection, and production. The KPH will also require explicit activities to be undertaken including taking an inventory of forest resources, the division of these resources into blocks or zones, and mapping of the resources, among others.

The exploitation of forest resources is to take into consideration the 'how to' in terms of optimal and fair use of resources while preserving those resources with a view to continued communal prosperity over the long term.

Licenses of the business activities contemplated in the Regulation are to be obtained from either the Minister or relevant Governors and carboncopied to the relevant Regents and Mayors. Whether the license is to be obtained from the Minister or from the relevant Governor is based on the volume of forest products being exploited.

Any breach of the provisions attracts administrative sanctions including suspension of activities, fines, and cancellation of licenses or permits.

The Regulation extends to 144 Articles and consequently this ILB can only highlight the issues.

This Regulation came into force on 8 January 2007 and repeals Government Regulation No. 34 of 2002. However, it is important to note that although the Regulation repeals an earlier regulation it does not repeal any of the implementing regulations issued based on the earlier regulation.