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Subversive Mining in Conservation Forest Areas

26 May

In the framework article 5 (2) Government Regulation No. 24 of 2010 which stated that conservation forest areas may used for strategic purpose on the Forest Area Utilization among other thing is subversive mining, on 19 May 2011, Government Republic of Indonesia has been issued Presidential Regulation No. 28 of 2011 on Utilization of Subversive Mining in Conservation Forest Areas (“PR No. 28/2011“).

Under its regulation Conservation Forest means a forest area functioning as an environmental support system to prevent floods, erosion control, preventing saltwater intrusion, and maintain soil fertility (article 1 (1) PR No. 28/2011).

Subversive Mining in Conservation Forests means subversive mining activities (is not directly connected to air), that connected to the land surface through shaft, tunnel, and/or adit, including facilities and infrastructures to support mining production in the conversation forest (Article 1 (2) PR No.28/2011).

The applicant of subversive mining in conservation forests areas license shall be in the form of Indonesia legal entity, before the applicant apply for its license the applicant shall has obtain mining permit or agreement. Prior the activities of subversive mining in conservation forests areas exploration and exploitation, the company shall granting approval from the ministry of forestry (“the Minister“) in the form of (i) principal permit and (ii) borrowing and use of forest areas permit.

Before the applicant apply for borrowing and use of forest area permit (Izin Pinjam Pakai Kawasan Hutan), the applicant shall submit an used of forest areas license that submitted to minister of forestry and copy to (i) minister of energy and natural resources, (ii) minister for the environmental, (iii) local governor, (iv) local regent/mayor and completed with following requirements:

  1. mining exploration feasibility study for conservation forest that has been approved by governor, regent/major according for theirs authority and minister of energy and natural resources;
  2. environmental feasibility study according to environmental quality threshold (AMDAL) valuation that has been adjusted with main function of conversation forest, issued by Minister of Environmental;
  3. recommendation from local governor, regent/major in accordance to technical consideration from local forestry institution;
  4. technical consideration from state owned enterprise (BUMN) that manage the conservation forest area;
  5. erelated mining license of mining agreement;
  6. statement from the company to fulfill the obligation and cost of borrowing and use of forest area permit (shall made before a notary).

The Minister of forestry will examine the used of forest areas license, in the event the company has required all the requirements under used of forest areas license (article 6 (5) PR. No. 28/2011), the ministry will issue borrowing and use of forest area principal permit that contained obligations of the applicant (“Principal Permit“).

  1. the applicant shall deliver compensation with 1:2 ratio In the event the applicant granted forest areas license, in the province that forest areas are under 30% (thirty percent) from total rivers and island areas;
  2. the applicant shall deliver compensation with 1:1 ratio In the event the applicant granted forest areas license, in the province that forest areas are above 30% (thirty percent) from total rivers and island areas and the applicant is obligated to made statement letter contains the capability of the applicant to pay Non-Tax State Revenues upon forest areas has been used and statement of ability to do the planting in the context of rehabilitation watershed with a minimum ratio 1:1;
  3. the applicant shall bear the costs of measuring, mapping, areas marking (pemancangan tanda batas), standing inventory (inventarisasi tegakan) and stumpage replacement the used of conservation forest area;
  4. the applicant shall pay the Forest Resource Provision (PSDH) and the Reforestation Fund (DR) in accordance with the prevailing regulations;
  5. the applicant shall pay the replacement cost of the investment management of forests due to the use of forest areas accordance with areas and duration of borrowing and used of forest areas; and
  6. the applicant shall made statement of ability (made before notary) to carry out reclamation and reforestation of conservation forest areas that have been used, forest protection, prevention occurrence of forest destruction, soil erosion, landslides, forest fires, makes it easy for forestry officials to conduct monitoring and evaluation, bear the cost of land inaugural compensation, land compensation and carry out reforestation.

The Principal Permit shall be valid for period of 2 (two) years since the dated of issuance and can be extended by the Ministry evaluation.

After the company/applicant has been completed the obligations under Principal Permit, the ministry will issue a borrowing and use of forest area license. This license is valid for period 20 (twenty) years according to the feasibility study and can be extended pursuant to mining license or agreement. This license can be transferred to the others party by granting prior approval from the Minister.

Kinds regards,

AK

 
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Posted by on May 26, 2011 in Mining, Uncategorized

 

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