Reforestation Funds - Amended Regulation

The depositing of reforestation funds had previously been permitted to be paid in Rupiah based on the daily published exchange rate of Bank Indonesia (BI) for United States Dollars (USD) and the fees associated with this were to be borne by the person or company making the transfer.

This was stipulated in Article 7(5) of Government Regulation No. 35 of 2002. However, with a fluctuating USD exchange rate the likelihood of insufficient funds being deposited has become a real threat to the reforestation program. Therefore, in order to head-off any potential shortfalls the Government has issued Regulation No. 58 of 2007, which requires all reforestation payments to be made in USD.