Jumat, Juni 23, 2023

Forest Utilization Cooperation with KPH Must Be Adjusted to Forest Utilization Business Licenses or Social Forest Management Approvals by 31 December 2023

The Minister of Environment and Forestry ("Minister") has issued Circular No. SE.5/MENLHK/SETJEN/HPL.2/5/2023 of 2023 on the Adjustment of Cooperation for the Utilization of Forest Through Forest Management Units (Kesatuan Pengelolaan Hutan – "KPH") into Forest Utilization Business Licenses or Social Forest Management Approvals ("Circular 5/2023"), which came into force on 31 May 2023.
Circular 5/2023 affirms that KPH, as facilitators and supervisors of forest utilization activities, are no longer considered legal subjects in relation to forest utilization. As a result, forest utilization must now be carried out based on Forest Utilization Business Licenses or Social Forest Management Approvals and the required adjustments should therefore be completed.
Any business actors who are engaging in cooperation agreements with KPH in relation to forest utilization should now submit adjustment requests in order to secure Forest Utilization Business Licenses through forest multi-businesses or Social Forest Management Approvals. Said requests should be submitted to the Minister enclosing the relevant cooperation agreements with KPH, as well as any cooperation area maps that require adjustment.
Any acknowledgments and protections that relate to forestry partnerships ("Kulin KK") that are set out under cooperation agreements with KPH and that have already been issued will remain effective until their expiration dates. However, once said agreements have expired, said Kulin KK should be adjusted to Social Forest Management Approvals through the submission of the relevant Kulin KK documents, cooperation agreements with KPH, as well as any cooperation area maps that require adjustment.
It is important to note that both of the above-mentioned adjustments should be completed in accordance with Regulation of the Minister No. 9 of 2021 on Social Forest Management by no later than 31 December 2023. In this regard, any failure to submit an adjustment request before this date will result in the relevant business actors being required to discontinue their forest utilization business activities, while their cooperation agreements with KPH will be automatically terminated.

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The Minister of Environment and Forestry ("Minister") has issued Circular No. SE.5/MENLHK/SETJEN/HPL.2/5/2023 of 2023 on the Adjustment of Cooperation for the Utilization of Forest Through Forest Management Units (Kesatuan Pengelolaan Hutan – "KPH") into Forest Utilization Business Licenses or Social Forest Management Approvals ("Circular 5/2023"), which came into force on 31 May 2023.
Circular 5/2023 affirms that KPH, as facilitators and supervisors of forest utilization activities, are no longer considered legal subjects in relation to forest utilization. As a result, forest utilization must now be carried out based on Forest Utilization Business Licenses or Social Forest Management Approvals and the required adjustments should therefore be completed.
Any business actors who are engaging in cooperation agreements with KPH in relation to forest utilization should now submit adjustment requests in order to secure Forest Utilization Business Licenses through forest multi-businesses or Social Forest Management Approvals. Said requests should be submitted to the Minister enclosing the relevant cooperation agreements with KPH, as well as any cooperation area maps that require adjustment.
Any acknowledgments and protections that relate to forestry partnerships ("Kulin KK") that are set out under cooperation agreements with KPH and that have already been issued will remain effective until their expiration dates. However, once said agreements have expired, said Kulin KK should be adjusted to Social Forest Management Approvals through the submission of the relevant Kulin KK documents, cooperation agreements with KPH, as well as any cooperation area maps that require adjustment.
It is important to note that both of the above-mentioned adjustments should be completed in accordance with Regulation of the Minister No. 9 of 2021 on Social Forest Management by no later than 31 December 2023. In this regard, any failure to submit an adjustment request before this date will result in the relevant business actors being required to discontinue their forest utilization business activities, while their cooperation agreements with KPH will be automatically terminated.

......