Forest Area Utilization Regulation

• Author: William A. Sullivan/Christian Teo Purwono & Partners
• Profession: Licensed Foreign Advocate in Indonesia as well as a Solicitor of the Supreme Court of New South Wales
• Pages: 419-427

CHAPTER 29

Forest Area Utilization Regulation

I. Executive Summary

1. Overview

The Forest Area Utilization Regulation (hereinafter referred to as “GR 24/

2010”) was issued with legal effect from February 1, 2010, and by way of the

implementation of Article 38 of the 1999 Forestry Law.

2. Approach

2.1 Rent Use Permit: Utilization of Forest Areas for nonforestry activ-

ities, including general mining activities, is allowed in (i) Production

Forests and (ii) Protected Forest Areas with a Rent Use Permit from

MoFOR.

2.2 Application: In order to obtain a Rent Use Permit, a party must, first,

submit an application to MoFOR and fulfill a number of adminis-

trative and technical requirements, which will be further detailed in a

subsequent MoFOR Regulation.

2.3 If the Rent Use Permit applicant fulfills the subject administrative and

technical requirements, MoFOR will grant to the Rent Use Permit

applicant, in the first instance, an Approval-in-Principle License with

a maximum validity period of two years, which is extendable subject

to evaluation.

2.4 The Approval-in-Principle License will specify a number of obliga-

tions that need to be fulfilled by the Rent Use Permit applicant for the

purpose of obtaining the Rent Use Permit. Once the Approval-in-

Principle License holder fulfills the Approval-in-Principle License

obligations, MoFOR will grant a Rent Use Permit to the Approval-in-

Principle License holder.

2.5 Notwithstanding 2.3 and 2.4 above, it may be possible to obtain a

Rent Use Permit without, first, obtaining an Approval-in-Principle

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