Presented by Directorate General of Forestry and Environmental Planning, Ministry of Environment and Forestry Indonesia, at the International Tropical Peatland Center (ITPC) soft launch, on 30 October 2018, in Jakarta, Indonesia.

1. DIRECTORATE GENERAL OF
FORESTRY AND ENVIROMENTAL
PLANNING
Leasehold of Forest Area License (IPPKH)
For Mining Activities And Electricity Infrastructure Development
Soft Launching Of The Interim ITPC Secretariat
Jakarta 30 Oct 2018

2. 2
1. Law No. 5 of 1990 concerning Conservation of Natural Resources and the Ecosytem
2. Law No. 41 of 1999 jo Law No. 19 of 2004 concerning Forestry
3. Law No 4. of 2009 concerning Minerals and Coal
4. Government Regulation No. 24 of 2010 jis No. 61 of 2012 and No. 105 of 2015
concerning The Use of Forest Areas
5. Government Regulation No. 24 of 2018 concerning Electronic Integrated Licensing
Services
6. Presidential Instruction N0. 6 of 2017 regarding Suspension of Granting of New
Licenses and Improvement of Governance of Natural Primary Forest and Peat Land
7. Minister of Environment and Forestry Regulation No. P.27 / 2018 regarding
Guidelines for Leasehold of Forest Area License
LEGAL BASIS

3. 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%
Convertible Production Forest 13.133.580 10,87%
TOTAL 120.783.631 100 %
63,66%
120.783.631
OfLandareaofIndonesia
does not include watershed conservation areas
covering + 5,531,934 Ha
Indonesian land area 1,890,739 km2)
(Decree of the Head of BIG Number 20 of 2013)
MAP OF INDONESIAN FOREST

4. ▪ Rich in biodiversity
▪ Have an ecological, economic and social functions
▪ Important component in climate change
▪ Development supporting
→ Provide space/land for the development for the other
uses
4
FOREST STRATEGIC VALUES

5. POTENTIAL NATURAL RESOURCES IN FOREST AREA
▪ Wood, Non-Timber
Forest Product,
Fauna,
▪ Water, Environmental
services
▪ etc
▪ Oil and Gas
▪ Minerals and
Coal
▪ GEOTHERMAL
▪ etc
Forest Area provide
a space for future
development

6. 1. The land, the waters and the
natural riches contained therein
shall be controlled by the State
and exploited to the greatest
benefit of the people (The 1945
Constitution Article 33)
2. All forests within the territory
of the Republic of Indonesia
including the natural resources
contained therein are controlled
by the State for the greatest
prosperity of the people (Law
41 of 1999 Article 4 paragraph
1).
THE USE OF FOREST
AREA
FOR NON FORESTRY
ACTIVITIES
THE USE OF FOREST AREA POLICY FOR MINING ACTIVITY AND ELECTRICITY INFRASTUCTURE DEVELOPMENT
Law 41 of 1999 Article 38
1. The use of forest area for the interest
of non-forestry development
activities may only granted in the
production forest and protection
forest areas.
2. The use of forest area as referred to
paragraph (1) shall be used without
changing the main fuction of forest
area.
3. The use of forest area for mining
activities applied by leasehold forest
area license from Ministry of
Forestry’s by considering the limit of
size and certain period as well as
environmental conservation
4. In The Protection Forest area, mining
activities are prohibited with open
mining patterns.
LEASEHOLD OF
FOREST AREAS
LICENSE
ENVIRONMENTAL
SERVICES UTILIZATION
PERMIT
Conservation Forest
Protection Forest &
Production Forest

7. Forest Areas For Non
Forestry Activities
The Use Forest areas
(Do not change the status & function of
the forest area)
(Law 41 of 1999 Article 38)
Government Regulation No. 24 of 2010
jis No. 61 of 2012 and No. 105 of 2015
Leasehold of Forest Areas License
(IPPKH)
(in Protected Forests, Limited Production Forests,
Production Forests and Convertible Production Forests)
Minister of Environment and Forestry
Regulation No. P.27 / 2018
Change in provisions of forest area
(Perubahan Peruntukan KH)
(Law 41 of 1999 Article 19)
Government Regulation No. 104 of
2015]
Exchange of forest areas (TMKH)
in Limited Production Forests and Production
Minister of Forestry Regulation No P.32/2010
jo41/2012 jo 27/2014
Forest release license (Pelepasan)
Convertible Production Forests
Minister of Forestry Regulation No P.51/2016
Forest Areas For Other Sector Activities
Production Forest
and/or Protection
Forest
Conservation Forest
(National Park, Forest
Park and Nature Park)
Environmental service utilization License (KSO)
• Government Regulation No. 28 of 2011 jo PP No. 108 of
2015 concerning Management of Nature Reserves and
Nature Conservation Area
• Minister of Environment and Forestry Regulation No. P.46 /
2016 concerning Utilization of Geothermal Environmental
Services in National Parks, Forest Park, & Nature Parks

8. IPPKH
Province with forest area
of < 30 % of land area
(P. Jawa, Lampung, Bali)
commercial
Province with forest area
of > 30 % of land area
non-
commercial
commercial
non-
commercial
provide land as compensation in a 1: 2
ratio
▪ pay Non-tax state revenue (PNBP)
▪ planting in the scheme of rehabilitation of
Watreshed (DAS) with a ratio of 1: 1
planting in the scheme of rehabilitation of
Watreshed (DAS) with a ratio of 1: 1
planting in the scheme of rehabilitation
of Watreshed (DAS) with a ratio of 1: 1
Without providing Compensation Land, without PNBP and without planting Watreshed (DAS) :
1. Defense, safety facilities of sea, land and air traffic, meteorology facilities, prevention of victims of natural
disasters
2. Survey and exploration
THE LEASEHOLD OF FOREST AREA LICENSE (IPPKH) SCHEME

9. The application is
submitted to the
Minister via
Director
Requirements:
1. Governor's
Recommendation
2. Environmental permit
3. Work plan and map
4. etc
THE LEASEHOLD OF FOREST AREA LICENSE (IPPKH) PROCEDUR
34 Workdays
IPPKH Holders
Fulfill
Commitment
verification
and analyst
IPPKH (with
commitment)
1. Boundary arrangement
2. Compensation land
3. Baseline of PNBP
Minister
Of LHK
Definitive IPPKH
(Determination of
work area)
20 Workdays
IPPKH Holder may start to work
the period of
fulfillment of
comitment is 1 year
Application
FIELD OPERATION
The application is
submitted by the
Minister / Governor
/ Regent / Company
Leader to the
Minister of LHK
Obligation
1. conduct reclamation and revegetation in forest
areas that have not been used
2. planting in the scheme of rehabilitation of
Watreshed (DAS)
3. pay the replacement value of the timber stand,
(PSDH), (DR).
4. Pay investment cost to forest exploitation /
utilization permit holder
5. Conduct forest protection.
6. maintain IPPKH area boundaries
7. ect

10. Restrictions of the using of forest area for mining activities
1. Quota of 10% of forest management unit (IUPHHK/KPH/Perhutani)
2. Quota of 10% of of protected forests and production forest on small islands
3. The forest area for social forestry purposes (community forest, village forest) → prohibited
4. Primary forest → prohibited
5. Peatland → prohibited
Presidential Instruction N0. 6 of 2017
moratorium on the award of new
licenses in primary natural forests and
peat lands
The exception to the moratorium provisions:
▪ applications for concession licenses already ‘approved in principle’ by the Minister of LHK;
▪ uses land needed for ‘vital’ national development projects (defined as geothermal, oil and natural gas, electricity, rice
and sugarcane), regardless of their proximity to conservation areas;
▪ the extension of existing licenses for forest exploitation and/or forest-area use as long as the license for the business
remains valid, regardless of the license-holder’s performance under the existing license or its environmental integrity;
▪ for ecosystem restoration.

11. Non Forestry
Activities Forest Area
Leasehold of forest
area license
Forest sustainability
obligations
1. provide land as compensation in a 1: 2 ratio
2. pay Non-tax state revenue
3. conduct reclamation and revegetation in
forest areas that have not been used
4. planting in the scheme of rehabilitation of
DAS
5. pay the replacement value of the timber
stand, (PSDH), (DR).
6. pay investment cost to forest exploitation /
utilization permit holder
7. Conduct forest protection.
8. maintain IPPKH area boundaries
application
requirements
Mutually Beneficial Concept

12. Ministry of Environment and Forestry (KLHK)

13. NO USE
STAGES
EXPLORATION EXPLOITATION
UNIT HA UNIT HA
1 MINERALS AND COAL 502 2,430,673.55 614 488,915.70
2 OIL AND GAS 174 2,088,958.51 107 7,630.06
3 ELECTRICITY 2 1,082.24 163 11,883.67
RECAPITULATION DATA OF A LEASEHOLD OF FOREST AREA LICENSE
MINING ACTIVITIES AND ELECTRICITY INFRATSRUCTURE DEVELOPMENT (until 1st Oct
2018)
0
500000
1000000
1500000
2000000
2500000
MINERALS AND COAL OIL AND GAS ELECTRICITY
2430673.55
2088958.51
1082.24
EXPLORATION (HA)
0
100000
200000
300000
400000
500000
MINERALS AND COAL OIL AND GAS ELECTRICITY
488915.7
7630.06 11883.67
EXPLOITATION (HA)

14. No PROVINSI Minerals and Coal Oil and Gas Electricity Total (ha)
1 Aceh 59,845.00 59,845.00
2 BANGKA BELITUNG 20,100.72 1,081.00 21,181.72
3 BANTEN 1,790.00 1,790.00
4 BENGKULU 5,352.04 5,352.04
5 GORONTALO 30,357.24 30,357.24
6 JAMBI 49,623.04 184,994.68 234,617.72
7 JAWA BARAT 4,235.70 5,669.46 9,905.16
8 JAWA TENGAH 5,970.86 18,801.98 24,772.84
9 JAWA TIMUR 23,748.11 46,401.45 1.24 70,150.80
10 KALIMANTAN BARAT 39,639.29 39,639.29
11 KALIMANTAN SELATAN 61,042.60 36,433.05 97,475.65
12 KALIMANTAN TENGAH 612,876.57 1,014,585.17 1,627,461.74
13 KALIMANTAN TIMUR 404,165.99 10,934.48 415,100.47
14 KALIMANTAN UTARA 71,118.18 45,279.88 116,398.06
15 LAMPUNG 8,574.19 8,574.19
16 MALUKU 13,294.56 140.89 13,435.45
17 MALUKU UTARA 324,050.44 324,050.44
18 NUSA TENGGARA BARAT 138,549.99 138,549.99
19 PAPUA 19,775.00 58,716.94 78,491.94
20 PAPUA BARAT 43,640.00 63,132.48 106,772.48
21 RIAU 0.00 413,967.37 413,967.37
22 SULAWESI BARAT 0.00 33.55 33.55
23 SULAWESI SELATAN 59,817.79 59,817.79
24 SULAWESI TENGAH 106,269.45 106,269.45
25 SULAWESI TENGGARA 94,632.79 23.26 94,656.05
26 SULAWESI UTARA 46,730.13 7,837.10 54,567.23
27 SUMATERA BARAT 4,710.64 9.89 4,720.53
28 SUMATERA SELATAN 60,842.94 153,169.14 214,012.08
29 SUMATERA UTARA 119,920.29 28,827.75 148,748.04
Grand Total 2,430,673.55 2,088,958.51 1,082.24 4,520,714.30
LEASEHOLD OF FOREST AREA LICENSE DATA BASE ON PROVINCE (EXPLORATION)

15. LEASEHOLD OF FOREST AREA LICENSE DATA BASE ON PROVINCE (EXPLOITATION)
No PROVINSI Minerals and Coal Oil and Gas Electricity Total (ha)
1 ACEH 444.42 120.07 564.49
2 BALI 0.00 20.83 20.83
3 BANGKA BELITUNG 5,745.83 18.47 5,764.30
4 BANTEN 16.00 32.85 48.85
5 BENGKULU 4,036.71 324.87 4,361.58
6 GORONTALO 999.90 50.84 1,050.74
7 JAMBI 5,177.94 872.30 198.55 6,248.79
8 JAWA BARAT 2,125.85 161.38 804.91 3,092.14
9 JAWA TENGAH 537.43 105.39 483.34 1,126.17
10 JAWA TIMUR 1,638.06 379.45 92.94 2,110.45
11 KALIMANTAN BARAT 6,728.28 138.02 6,866.30
12 KALIMANTAN SELATAN 61,805.19 61,805.19
13 KALIMANTAN TENGAH 103,439.74 75.53 152.13 103,667.40
14 KALIMANTAN TIMUR 189,582.14 1,997.13 98.66 191,677.93
15 KALIMANTAN UTARA 13,690.37 33.47 2,159.40 15,883.24
16 KEPULAUAN RIAU 1,834.47 56.66 117.82 2,008.95
17 LAMPUNG 198.67 3.75 187.13 389.55
18 MALUKU 134.63 573.78 708.41
19 MALUKU UTARA 21,304.44 21,304.44
20 NUSA TENGGARA BARAT 7,419.47 79.43 7,498.90
21 NUSA TENGGARA TIMUR 805.61 112.88 918.49
22 PAPUA 0.00 1,686.79 1,686.79
23 PAPUA BARAT 603.25 212.35 815.60
24 RIAU 6,752.00 1,104.17 0.00 7,856.17
25 SULAWESI BARAT 603.50 603.50
26 SULAWESI SELATAN 2,101.73 537.81 2,639.54
27 SULAWESI TENGAH 8,686.62 351.22 9,037.84
28 SULAWESI TENGGARA 26,301.35 194.48 26,495.82
29 SULAWESI UTARA 2,528.92 517.16 3,046.08
30 SUMATERA BARAT 1,621.89 413.61 2,035.50
31 SUMATERA SELATAN 11,183.57 2,041.13 317.46 13,542.16
32 SUMATERA UTARA 867.69 13.58 2,672.01 3,553.28
Grand Total 488,915.66 7,630.07 11,883.68 508,429.41