REGULATION OF THE MINISTER OF FORESTRY 
                                                 OF THE REPUBLIC OF INDONESIA 
                                                      Number: P.50/Menhut-II/2010 
                                                                        
                                                                     ON 
                     THE METHOD OF GRANTING AND EXTENDING THE WORK AREA OF FOREST 
                           TIMBER PRODUCTS UTILISATION BUSINESS LICENSES (IUPHHK) IN 
                      NATURAL FORESTS, ECOSYSTEM RESTORATION IUPHHK, OR INDUSTRIAL 
                                PLANTATION FORESTS AT PRODUCTION FORESTS IUPHHK 
                                                                        
                                     WITH THE BLESSINGS OF THE ONE ALMIGHTY GOD 
                                                                        
                             THE MINISTER OF FORESTRY OF THE REPUBLIC OF INDONESIA, 
                                                                        
                     Considering: 
                         a.  whereas pursuant to the provisions of Article 35 section (3) and Article 38 section 
                             (6)  of  Government  Regulation  Number  6  of  the  year  2007  as  amended  by 
                             Government Regulation Number 3 of the year 2008 on Forest Structure and the 
                             Composition of the Forest Management Plan and Forest Utilisation, it is stipulated 
                             that  the  provisions  of  timber  products  business  licences  at  natural  forests, 
                             restoration  of  the  ecosystem,  and  plantation  forests  shall  be  arranged  in  a 
                             Ministerial Regulation; 
                         b.  whereas  as  a  follow-up  measure  of  the  provision  mentioned  in  point  a,    the 
                             Regulation of the Minister of Forestry Number P.19/Menhut-II/2007 was issued 
                             as  amended  by  Number  P.11/Menhut-II/2008  on  the  method  of  granting  and 
                             extending the work area of forest timber products utilisation business licenses at 
                             industrial  plantation  forests  in  plantation  forests  at  production  forests  and  the 
                             Regulation of the Minister of Forestry Number P. 20/Menhut-II/2007 as amended 
                             by Number P.12/Menhut-II/2008 on the method of granting forest timber products 
                     Unofficial translation. For information purpose only. Always refer to the original Bahasa         1 
                     Indonesia version. 
                      
                      
                             utilisation business licences in natural forests at production forests and Regulation 
                             of  the Minister of Forestry Number P.61/Menhut-II/2008 on the provisions and 
                             method of granting business licences for the utilisation of ecosystem restoration 
                             forest timber products in natural forests at production forests through a request; 
                         c.  whereas in the frame of providing investment certainty and facilities, as well as to 
                             avoid high investment costs, the process for granting timber utilisation business 
                             licences as arranged in point b needs to be simplified; 
                         d.  whereas in connection with the above mentioned matters, it is deemed necessary 
                             to stipulate a  Regulation of the Minister of Forestry on the Method of Granting 
                             and  Extending  the Work  Area of Forest  Timber Products Utilisation  Business 
                             Licences  (IUPHHK)  in  Natural  Forests,  Ecosystem  Restoration  IUPHHK,  or 
                             Industrial Plantation Forests at Production Forests IUPHHK. 
                     Bearing in mind: 
                         1.  Law  Number  5  of  the  year  1990  on  the  Conservancy  of  Biological  Natural 
                             Resources and their Ecosystem (State Gazette of the Republic of Indonesia of the 
                             year 1990 Number 49, Supplement to State Gazette of the Republic of Indonesia 
                             Number 3419); 
                         2.  Law Number 41 of the year 1999 on Forestry (State Gazette of the Republic of 
                             Indonesia  of  the  year  1999  Number  167,  Supplement  to  State  Gazette  of  the 
                             Republic of Indonesia Number 3888) as amended by Law Number 19 of the year 
                             2004 on the Stipulation of a Government Regulation in lieu of a Law Number 1 of 
                             the year 2004 on the Amendment of Law Number 41 of the year 1999 on Forestry 
                             becoming a Law (State Gazette of the Republic of Indonesia of the year 2004  
                     Unofficial translation. For information purpose only. Always refer to the original Bahasa         2 
                     Indonesia version. 
                      
                      
                             Number 86, Supplement to State Gazette of the Republic of Indonesia Number 
                             4412); 
                         3.  Law Number 32 of the year 2004 on Regional Administration (State Gazette of 
                             the  Republic of Indonesia of  the  year 2004 Number 125,  Supplement to State 
                             Gazette of the Republic of Indonesia Number 4437) as severally amended lastly 
                             by Law Number 12 of the year 2008 on the Second Amendment of Law Number 
                             32 of the year 2004 on Regional Administration (State Gazette of the Republic of 
                             Indonesia  of  the  year  2008  Number  59,  Supplement  to  State  Gazette  of  the 
                             Republic of Indonesia Number 4844); 
                         4.  Law  Number  26  of  the  year  2007  on  Interior  Planning  (State  Gazette  of  the 
                             Republic of Indonesia of the year 2007 Number 68, Supplement to State Gazette 
                             of the Republic of Indonesia Number 4725); 
                         5.  Law  Number  32  of  the  year  2009  on  Management  and  Protection  of  The 
                             Environment  (State  Gazette  of  the  Republic  of  Indonesia  of  the  year  2009 
                             Number 140, Supplement to State Gazette of the Republic of Indonesia Number 
                             5059); 
                         6.  Government Regulation Number 6 of the year 2007 on Forestry Structure and  the 
                             Composition of the Forest Management Plan and Forest Utilisation (State Gazette 
                             of  the Republic of Indonesia of the year 2007 Number 22, Supplement to State 
                             Gazette of the Republic of Indonesia Number 4696), as amended by Government 
                             Regulation Number 3 of the year 2008 (State Gazette of the Republic of Indonesia 
                             of  the  year  2008  Number 16, Supplement to State Gazette of the  Republic of 
                             Indonesia Number 4814); 
                     Unofficial translation. For information purpose only. Always refer to the original Bahasa         3 
                     Indonesia version. 
                      
                      
                         7.  Government  Regulation  Number  38  of  the  year  2007  on  the  Distribution  of 
                             Administration  Matters  between  the  Government,  the  Provincial  Regional 
                             Administration and the Kabupaten/Municipality  Regional  Administration (State 
                             Gazette of the Republic of Indonesia of the year 2007 Number 82, Supplement to 
                             State Gazette of the Republic of Indonesia Number 4737); 
                         8.  Decree of the President Number 84/P of the year 2009 on the Establishment of the 
                             United Indonesia Cabinet II; 
                         9.  Regulation of the President Number 47 of the year 2009 on the Establishment and 
                             Organisation of Ministries of the State of the Republic of Indonesia; 
                         10. Regulation of the President Number 24 of the year 2010 on the Position, Tasks 
                             and Functions of Ministries of the State and the Composition of the Organisation, 
                             Tasks and Functions of Echelon I, at Ministries of the State; 
                         11. Regulation  of  the  Minister  of  Forestry  Number  P.63/Menhut-II/2008  on  the 
                             Method of Issuing a Recommendation of the Governor in the frame of a request 
                             or extension of IUPHHK for Natural Forests or Plantation Forests; 
                         12. Regulation  of  the  Minister  of  Forestry  Number  P.40/Menhut-II/2010  on  the 
                             Organisation and Work Method of the Ministry of Forestry (State Bulletin of the 
                             Republic of Indonesia of the year 2010 number 405; 
                                                             HAS DECIDED: 
                     To stipulate: 
                              
                         A REGULATION OF THE MINISTER OF FORESTRY ON THE METHOD OF 
                           GRANTING AND EXTENDING THE WORK AREA OF FOREST TIMBER 
                          PRODUCTS UTILISATION BUSINESS LICENSES (IUPHHK) IN NATURAL 
                             FORESTS, ECOSYSTEM RESTORATION IUPHHK, OR INDUSTRIAL 
                                PLANTATION FORESTS AT PRODUCTION FORESTS IUPHHK 
                                                                        
                     Unofficial translation. For information purpose only. Always refer to the original Bahasa         4 
                     Indonesia version.