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Forestry Regulation related to Land

Acquisition Process
Forest State

All Legal relation
Forestry between
Determine some forest and
issue area into forest
State Forest
Indigenous Forest
Forest Area Status
planning Status &
Border setting Forest with Rights on it people

managing Forest Area
Function Conservation Forest

R&D, Training, Function Determination

Protected Forest
Counseling License
Production Forest
Monitoring & Function Changes
Joint Regulation
between Ministry of
Indonesia Forestry Regulation Home Affairs,
Ministry of Forestry,
Ministry of Public
Works, and minister Inventory
Government Regulation of Number 44/2004 of housing Number of
in Forestry Planning 79 2014, Mastery,
PB.3/Menhut- ownership
Government Regulation Number 45/2004 11/2014, , usage
17/PRT/M/2014, and
on Forest Protection 8/SKB/X/2014 on
Procedure of
Government Number 6/2007 on Forest Settlement of Land in Forest
Tenure in Forest area
Law Number Arrangement, Forest Management Plan and Forest
41/99 amend Utilization
by Law Government Number 76/2007 on Forest by

Number Rehabilitation and Reclamation

19/204 Presidential
Regulation Number
Government Regulation Number 24 as amend by 88/2017 on
Government Regulation Number 61/2012 and Settlement of Land
Number 105/2015 on The Usage of Forest Area Tenure in Forest Area
Government Regulation of Number 104/2015 on
Ministerial of Environment
Changes the Allotment and Function of Forest Area and Forestry Number
Procedure p.50/Menlhk/Setjen/Kum.1
/6/2016 on Forest Borrow
to Use Guideline
Forest Classification and Function in Indonesia
Main Classification Sub-classification Main Function

Production Forest Limited Production Forest Generates both timber and non-timber forest products
Hutan Produksi Hutan Produksi Terbatas (HPT) through selective cutting system
Permanent Production Forest Generates both timber and non-timber forest products
Hutan Produksi Tetap (HP) that can be done through cutting system
Convertible Production Forrest Generates both timber and-non timber forest products but
Hutan Produksi yang dapat Dikoncersi (HPK) spatially reserved for either forest area or development
other than forestry
Protected Forest Protects life supporting systems for hydrology, prevents
Hutan Lindung (HL) floods, controls erosion, prevents seawater intrusion, and
maintains soil fertility.
Conservation Natural Reserve Preserves animal and plant biodiversity as well as its
Forest Kawasan Hutan Suaka Alam (KSA) ecosystem, also functions as an area for life-supporting
Hutan Konservasi system. This sub-classification is further segregated into
(KK) wildlife reserve and nature reserve
Nature Conservation Area Protects life-supporting system, preserves biodiversity and
Kawasan Hutan Pelestarian Alam (KPA) sustainable utilization of natural resources and their
ecosystems. The sub –classification is further segregated
into 3 categories: (1) National park; (2) botanical forest
park; and (3) natural park
Hunting Parks Designated as tourist hunting area
Taman Buru
Criteria for Determining Spatial Dunction in National Forestry Plan (Rencana Kehutanan Tingkat Nasional,
RKTN) 2011-2030

No. Spatial Criteria Utilization

1. Conservation All conservation areas and To be utilized for conservation of forest
Area proposed conservation areas resources while considering the economic,
social and environmental aspects as well as the
utilization, protection and preservation
2. Protection of • Protected forest with primary, To protect the forest ecosystem and peat land
natural forests secondary, and mangrove forest as well as to supply carbon. Further utilization
and peat lands cover. should be in line with the main purpose. The
• Protected forest and production scheme of carbon trading can be planned
forest, which are peat land based on this spatial function.
areas with depth of 2 meter or
above and no existing forest
permit holders.
3. Rehabilitation Forest area within critical To accelerate forest rehabilitation due to its
Area watershed areas and mining areas. location with the critical watershed and post-
mining areas. If the rehabilitation process is
completed, then it can be utilized based on its
function and utilization plan.
Criteria for Determining Spatial Dunction in National Forestry Plan (Rencana Kehutanan Tingkat Nasional,
RKTN) 2011-2030

No. Spatial Function Criteria Utilization

4. Area for large-scale Forest areas that have forest permit holders, as To be utilized for large-scale
forest management well as production forests with the forest cover forestry management
primary forest, secondary forest, plantation, (cooperation) with various
bush and arable land without any permit schemes, such as Business License
holder and with areas more than 7,500 ha to Use Timber Forest of Natural
Forest, Plantation and Ecosystem
Restoration (IUPHHK-HA/HTRE)
5. Area for small-scale Forest areas that have community-based forest To be utilized for small-scale forest
forest management permit holders as well as production forest or management (community) with
protected forest with the forest cover of various schemes (HTR, HKm, HD).
secondary forest, plantation, bush and arable In this area, community can
land without any permit holder, with areas of increase their roles and accesses to
less than 7,500 ha and located about 0-10km the forest resources.
from residential areas
6. Non-forest area Convertible production forests with forest This forest area is used for
cover of primary forest and secondary forest, community forests and to fulfill the
more than 2 meters of non-peat land area, and needs of the non forestry sector.
without forest permit holders. The process will be based on
existing forestry regulation.
Category of Forestry Permit (1)
Utilization of Environmental
Utilization of timber/non-timber Services (Izin Usaha
Utilization in
forest products in production Pemanfaatan Jasa
forests/protected forests Lingkungan/IUPJL) in production Production Forest Area
forest/protected forest

1. Business Permit of timber Forest 1. Business Permit of water and

Production Utilization in Natural energy by water utilization in
Forest protected forest 1. Business Permit to Utilize
2. Business Permit of timber Forest and 2. Permit of water and energy by Silvopasture area in Production
Industrial Plant Forest Utilization in water utilization in protected Forests
Plant Forest forest 2. Business permit to Cultivate Plant
3. Business Permit of timber Forest 3. Business Permit of carbon and Breed Wildlife in The
absorption utilization and/or Production Forest
Production Ecosystem Restoration in
Natural Forest carbon storage in protection
4. Business Permit of Non-Non timber forest
4. Business Permit of carbon
Forest Production Utilization in
absorption utilization and/or
Natural Forest
carbon storage in production
5. Business Permit of Non-timber Forest forest
Production Utilization in Plant Forest 5. Business Permit of Utilization of
6. Business Permit of timber Forest Environment Services in
Production Utilization in Plant Forest Production Forest
by Artificial regeneration clear-cut
Category of Forestry Permit (2)

The Usage of
Production/Protection Nature Tourism Seedling of
Forest, Discharge, and
Business Forest Plants
Exchange Forest Area.

1. Business Permit of 1. Permit to Export Seed

1.IPPKH Provision Nature of Forest Plants Environment
Tourism Facilities 2. Permit to Import Seed
2.Discharge of 2. Business Permit of of Forest Plants Permit
Provision Nature
Forest Area Tourism Services
3.Exchange of 3. Conservation Agency
Forest Area 4. Utilization of non-
commercial animals
5. Permit to exchange
wildlife animals/plants
with overseas
conservation agencies
6. Business Permit for new
7. etc
Indonesia Environmental Permit Management
Project/Business Planning Project/Business Construction/Operational Post Project/Business

Protection and Management of

the Environment (PME) Permit

Environmental Business
Business/Project Business/
Permit Permit Project Closure

Permit to Env. Permit and PME Env.
Discharge of Permit Implementation Audit
Production also continuous
Business development
Forest Area
Plan/Project Plan
Environmental Supervision Notes:
BML: Env. Quality
BML KBKL Standards
RTRW/RDTR KBKL: Standard Criteria
Envi. Law Envorcement for Env/ Damage
Forest Usage (based on Ministry of Environment and Forestry
Regulation Number P.50/Menlhk/Setjen/Kum.1/6/2016)

to use a part of
forest area for non- Production
forestry activity Forest Area
without change the Limited Cooperation
main function of the only for
forest area
consideration of Protection
specific area and
Forest Area
time limits and Shared
environmental facilities
Forest Use: IPPKH (based on Ministry of Environment and
Forestry Regulation Number P.50/Menlhk/Setjen/Kum.1/6/2016)
d. Telecommunication network of radio transmitting stations, and television relay
IPPKH station, and earth observation stations;
e. Public road, highway road, rail road;
f. Transportation facilitates which not categorized as public transportation to be
use for the purpose of transporting the product;: road development, canal,
Only for activities that have port , etc. for the purposes to transporting the agricultural, fisheries, or other
strategic objectives that can’t products;
be avoided, among others: g. Reservoirs, dams, weir, drinking waterways, drainage, and sanitation, and
a. religious affairs, such as other irrigation buildings;
worship place, cemetery, h. Public facilities;
i. other than premier forest products, industry;
religious tourism;
j. Security; such as combat training, radar stations, watch tower, and cross
b. Mining; mineral mining, country border post;
coal, oil and gas, includes k. Public service facility, such as transportation safety: Among others sea traffic
facilities and smelter; safety, air traffic safety, etc.
c. Generating plant, l. Natural disaster evacuation route, natural disaster victim shelter and their
transmission, temporary cultivation lands
m.agriculture in the framework of food security;
distribution, substation,
n. Agriculture in the framework of energy;
new and renewable o. Airport and port,; if the province with total forest area are 30% of watershed,
energy, such as islands, and/or provinces and is a national strategic plan.
In a province with In a province with forest IPPKH without paying land


compensation nor paying PNBP
forest area equal or less area above 30% higher
forest usage, and without have
than 30% of the total than water shed, island, to rehabilitate watershed, only
and/or province. Have to for:
watershed, island,
pay for the compensation: a. Combat training, radar
and/or province. Have
a. Paying PNBP forest station, watch tower;
to pay compensation:
usage, and plant to b. Security for public facility,
a. Land to be use in watershed rehabilitation such as, sea traffic, air traffic,
forest area for especially for commercial quarantine, meteorology facility
commercial purposes, usage with ratio 1:1 c. Exploration and survey;
with ratio 1:2 b. Planting to rehabilitate d. Natural disaster victim
shelter, and is their cultivation
watershed, specially for no-
b. Rehabilitate water commercial forest usage
shed area with ratio 1:1 with ratio 1:1 e. Religious issue.
IPPKH granted
by Minister

• Non-commercial public facilities,

Minister may with the widest area 5 Ha
delegates to the Only • Community mining in accordance
for with the mining regulation, submit
governor by individuals and/or groups of
people and/or the community
Forest Usage for mining
with significant Significant impacts, board coverage, and strategic
value criteria :
impacts, broad a. Special Mining Business Area (Wilayah Usaha
Pertambangan Khusus/WUPK) in the State
coverage and Reserve Area (Wilaya hPencadangan Negara/WPN)
which already got the approval from the
strategic value, Parliament.
the IPPKH will be b. The approval is the basis for granting forest use
permits in all WUPK that become the area of the
granted after got the Special Mining Business License (Wilayah Izin
approval from the Usaha Pertambangan Khusus/WIUPK)
Extent of IPPKH (1)
In Production In Production Forest
In Production Forest
Forest Area which Area which are the
Area which are not
subject to forest
are the subject to the subject of forest
utilization permits, The extent of IPPKH
forest utilization utilization permits,
and already have the for mining activity in
permits, the the extent of IPPKH
Forest Management small island, can be
Extent of IPPKH for mining activity
Unit, the extent of considered to have
can be considered to
for mining activity IPPKH for mining maximum 10% from
have maximum 10%
can be considered activity can be total production
of the
to have maximum considered to have forest area and
10% from the maximum 10% from protected forest are
es Production Forest
area of the Forest in that island.
effective area of Area that are not the
Management Unit
each utilization subject of forest
which are allowed to
permit utilization permits
become IPPKH area.
Extent of IPPKH (2)
The extent of
Forest usage
IPPKH for mining application for All of the 10% provision must be
activity in mining activity in considered these aspect:
Perhutani working Protected Forest a. Forest area usage controlling;
area can be Area, the extent of
b. Business sustainability of the
considered to have IPPKH can be
considered to have permit of forest area
maximum 10%
maximum 10% from utilization/management.
from total area of
the total Protected
the Forest
Forest area.
Management Unit
Extent of IPPKH (3)
All of the 10% provision are not applied for IPPKH in these
a. Mining survey or exploration;
b. Oil and gas production;
c. Application which already have the Ministry approval;
d. Mineral mining production for raw material smelter facility
which already approved by the ministry of Energy and Mineral
Resources before this Ministerial Regulation enacted.
e. Coal mining production which all of the production are
intended to meet the National energy needs and already
approved by the Ministry of Energy and Mineral Resources;
f. Strategic project which is government inter-cooperation.
IPPKH Application (1)
Applicant BKPM/Minister of KLH Director General Secretariat General Minister

•Applicant can •BKPM for •Making the technical •Within 7 days they •After receiving the
commercial IPPKH, review, with results:
be: do some legal letter concept,
the application • Doesn’t meet the study, and then within 3 days have
Minister/other technical criteria For
goes through Front preparing the to sign the
ministerial level non commercial:
Office (FO) in Minister give the concept of rejection letter or
•Governor/Major BKPM, then FO rejection letter or the approval
rejection letter
•Director of forward the • Doesn’t meet the approval letter for: decree for non
Business entity document to technical criteria •Non commercial commercial IPPKH
Liaison Officer For Commercial: DG IPPKH application
(LO). Within 1 forwarding the  submit it to
group, or week LO should document to
community (only the Minister
asses the Secretariat General,
for community then Secretariat •Commercial
document . And
mining activity in General will conduct IPPKH application
make a decision:
legal study with 2  to get approval
accordance to (1). not complete: possibility results: from the Minister
mining return to FO (2). making the concept
regulation) does not meet the of
criteria: rejection rejection/approval
(3). meet the letter.
criteria: forward • meet the criteria:
the document to DG forward the
the Director result and the map
General of the proposed
area to the
•Minister for non- Secretariat General
commercial IPPKH

Within 3 days after receiving Forwarding the concept For Commercial IPPKH,
the document, head of BKPM which already got the Minister give the approval
have to sign the approval or Minister approval to BKPM to accept or reject the
rejection letter
letter concept
Forest usage: Cooperation

a. Planting/wiring along g. Embung, dams, sabo

For Development street; construction;
in non-forestry b. Installation for village h. Construction of water
activity which can power supply (non-high reservoirs and pipelines
support the forest voltage (SUTET/SUTT); water for non commercial
management c. Construction of canal ones;
tertiary water channels, i. Installation of billboards
river j. Planting by outside forestry
normalization/irrigation party for reclamation
canal, and embankment activities, and forest
making flood retention; rehabilitation;
d. Landfill; k. Combat training areas,
e. Rest area development; other than facilities and
f. Road improvement for infrastructure;
public road or l. Survey, which conduct by
transportation of forest government agency for no
production facilitation; longer than 3 months.
Forest usage: Cooperation
• Submit the application to: President Director of Perhutani, Head of Forest Management Unit
in her/his area of work, Head of Special Purpose Forest Management Unit (if the area is in
special purpose forest area), Head of Provincial Department handling forestry issues if the
Applicant area is outside Perhutani working area and haven’t establish any Forest Management Unit .

• Team (President Director of Perhutani and Head of Forest Management Unit or Head of
Provincial Department assessing the application
• IF the application meets the criteria, team submit the proposal to the Ministry

• Give the approval or reject the application

Director General (in
the name of
Forest usage: Shared

Shared Facilities
To use Forest area by Agreement,
using facilities or consist: rights and
infrastructure which obligation, scope
already build by the of use of shared
holder of utilization facilities
forest product permit, or
the holder of IPPKH
Shared facilities shall be reported
to the Director General
Land Acquisition Time Line

Planning Preparation Implementation Handover

DPPT Agreement

Spatial Plan
Project Plan
Without study period :125 Days Permit
EIA/SIA (AMDAL) Handover
If any forest area or any land of special status

Recommendation by Goveror 30
days & Perhutani 30 Days BKPM and Ministry of KLHK: Max 49 days
7 Days for Governor Recommendation, 14 Days announcement
by Bupati/Walikota, 30 Days for objection submission
PPTKH Didn’t mention about exact time, but the replacement land should be ready
within 2 years, and the project cannot be started if the replacement land is
LP2B not ready

Wakaf, Ulayat, State Owned

Land, etc