THE LAWS AND REGULATION
ON LEASING FOREST AREA FOR COAL MINING

Directorate of Planning, Utilization and Formation of Forest Management Unit,
Directorate General of Forest and Environmental Planning
Ministry of Environment and Forestry Republic of Indonesia
Jakarta, 4th February 2016

JURISDICAL BASIC
1. Law number 41 of 1999 juncto Law Number 19 of 2004 regarding Forestry
2. Government Regulation Number 24 of 2010 juncto 61 of 2012 and 105 of2015 concerning Forest Land Use

3. Government Regulation Number 33 of 2014 concerning Type and Rates ofNon Tax State Revenue (PNBP) from Leasing Forest Area.
4. Presidential Regulation Number 28 of 2011 concerning Protected Forest
Land Use for Underground Mining

5. Presidential Instruction Number 8 of 2015 concerning Moratorium of New
License and Improving Governance of Primary Forest and Peatland
6. Minister of Forestry Regulation Number P.16/Menhut-II/2014 concerning
Guideline of Leasing Forest Area for Temporary Use

Principle Regulation of Leasing Forest Area
Article 38 the laws number 41 year 1999 on Forestry(1) Leasing forest area can only be made in production forest area andprotection forest area (conservation forest area is forbidden)(2) Leasing forest area can be made without changing the main functionof forest area(4) Open-pit mining is prohibited in protection forest

Scope of Leasing Forest Area
1. Religion; among other religious places of worship, cemeteries and spiritual tourism.
2. Mining includes the mining of oil and gas, minerals, coal, and geothermal energy,including facilities and infrastructure.
3. Generator installations, transmission, and distribution of electricity and new andrenewable energy technologies.
4. Telecommunications networks, radio station, and television relay stations.
5. Public roads, highways/toll road, and railways.
6. Transportation infrastructure that is not categorized as public transport
infrastructure, but for transportation of production (including construction of road,canals, port or the similar for purposes of transportation of mining production,
plantations, agriculture, fisheries or others).
7. Water resources infrastructure, network construction installation of water, and canalof clean water and or wastewater.

Scope of Leasing Forest Area
8. Public facilities.
9. Industry other than primary forest industry.
10. Defense and security , including combat training centers , radar stations ,and tower.
11. Infrastructure supporting public safety including the safety of sea traffic ,air traffic and facility of meteorology, climatology , and geophysics.
12. Temporary shelter for victims of natural disasters.
13. Certain agricultural in term of food security and energy security.

63,66%120.783.631

Conservation forest

21.902.407

18,13%

Protection forest

29.638.486

24,54%

Limited Production forest

26.843.748

22,22%

Production forest

29.265.410

24,23%

Conversionable forest

13.133.580

10,87%

SUM

120.783.631

100 %Leasing Forest Area for Mining
a. Production Forest (HPT/HP/HPK): can be conducted both openpit mining activities and under ground mining activities.
b. Protection Forest (HL) : prohibited for open pit miningactivities, allowed only underground mining without any
impact on :1. Land surface decline;
2. Changes of principal function of forest land permanently;
3. Groundwater aquifer destruction.

NEW REGULATION (PP NO 105 YEAR 2015)  Related with Procedure

Application

requirement

IPPKH
LicenseObligationof IPPKH
LicenseNew regulation
DoPrevious regulation

Application

requirement

PrincipalApproval(PA)

IPPKH
License(2 years)

Obligationof PAApplication

APPLICANTS of Leasing Forest Area for Mining
1. The head of Business entity/company (PT, CV etc)
2. Personal / individual
3. A group of peopleAPPLICATION REQUIREMENTS
a. Administrative requirements
1. Mining License
2. Governor recommendation
3. Deed of Incorporation, Compani profile, Tax ID Number / NPWP, two last years of financial reportthat audited by Certified Public Accountants (CPA)
4. Statement letter
memenuhi semua kewajiban, keabasahan dokumen, tidak melakukan kegiatan
sebelum mendapat izin dari Menterib. Technical Requirements :Work plan document
Location map
The last coverage of satellite imagery within minimum resolution 5 meters.
Environmental Permit and Environmental Impact Assessments (EIA)
Technical Considerations from Directorate General of Mineral and Coal, Ministry of Energy andMineral Resources
6. Technical Considerations from Perum Perhutani if the mining location in Java
7. Statement letter that applicant has a forester
1.
2.
3.
4.
5.

OBLIGATIONSProvince with forest area < 30 %(Java, Lampung, Bali)
1.
2.
3.
4.

Survey and bordering the area of leasing within 1 year
Serve land as compensation with ratio 1 : 2Conducting the compensation land’s reforestation
PSDH (Forest Ressources Provision), DR (ReforestationBudget) and compensation for the value of uprights
and other Financial obligations
5. Forest protection
6. Reclamation and reforestation
7. Community empowerment
8. Allowing forestry officials in order to monitor andevaluate forest
9. Coordinating all activities with forestry officials
10. Make a report every six months
11. Policy advisor

Note : number 1,2,3 and 4 are not for exploration activities

Province with forest area > 30 %(Java, Lampung, Bali)

1. Survey and bordering the area of leasing within 1 year
2. Conducting tree planting in order to watershed rehabilitation

3. Paying Non-Tax State Revenue (PNBP)
4. PSDH (Forest Ressources Provision), DR (ReforestationBudget) and compensation for the value of upright andother Financial obligations
5. Forest protection
6. Reclamation and reforestation
7. Community empowerment
8. Allowing forestry officials in order to monitor and evaluate
forest
9. Coordinating all activities with forestry officials
10. Make a report every six months
11. Policy advisor

QUOTA

Fores
Concession
Regency BRegency A

1. Quota in Regency A= 10 % * Area of regency B
2. Quota in Regency B
a. In the forest concession= 10 % * effective area of forest
concession
b. Outside the forest concession =10 %3. Quota in Java (Perum Perhutaniarea) = 10 * FMUNote :
The forest concession that has acertificate sustainable forest
management with “good predicate” isprohibited for mining

TIME PERIOD OF LICENSE
a. Time period of Leasing Forest Area License (IPPKH) for
Explorations activities is 2 years and it can be extended
b. Time period of Leasing Forest Area License (IPPKH) for
Exploitation activities depends on the time period ofmining license and it can be extended
The extension is based on the evaluation conducted by
Provincial Forestry Service

NULLIFICATION/ABOLISHMENT OF LICENSE
Survey and bordering area do not finish within 1 year
Unable to fulfill the obligation
The validity period of leasing forest area license is expired;
The license of leasing forest area is revoked by Environment andForestry Minister; The leasing forest area license is handed back; The validity period of mining license is expired.
 The validity period of mining license is revokedTERIMA KASIHBanyak pohon, banyak rizki