Joint Venture Operations in Plantation Forests

Plantation forest productivity and exploitation is not at an optimal level and in acknowledgement of the poor performance in this sector the Minister for Forestry has issued Regulation No. P.20/MENHUTII/2005 in order to facilitate increased levels of productivity and exploitation of business licenses already issued in the sector.

The basic premise of the Regulation is to set-out the application procedures to obtain a Joint Venture Operations (KSO) license. The primary players in the KSO are the concession holder (IUPHHK formerly a HPHT or HPHTI) and any one of the following, private corporation; a limited liability company; a State or Regional-Owned Enterprise; a Cooperative; or an individual.