Forest Area Borrowing Permit: Know the Terms and Procedures

KH friends, forest areas are not only natural resources that are beneficial for the development of the forestry sector, but also for interests outside the forestry sector. The use of forest areas for development purposes outside of forestry activities can only be carried out for activities that have strategic objectives that cannot be avoided. Some examples of development activities outside forestry activities include the construction of places of worship, spiritual tourism, cemeteries, mining, power plants, telecommunications networks, public roads, toll roads, reservoirs, dams, public facilities, defense and security infrastructure, and others. However, the use of forest areas for purposes outside the forestry sector can only be done on a limited basis in production forest and protected forest areas. In addition, the use of forest areas for the non-forestry sector must also be carried out through a Borrow-to-Use Forest Area Permit (IPPKH). So, do you already know about this Forest Area Use Borrowing Permit (IPPKH)? What are the requirements and procedures that must be done to obtain it? Let’s see the explanation below! Based on the Regulation of the Minister of Environment and Forestry Number P.27/Menlhk/Setjen/Kum.1/7/2018, the Forest Area Borrowing and Use Permit is a permit granted to use forest areas for development activities outside forestry activities without changing the function and designation of forest areas.

Requirements for Obtaining a Borrow-to-Use Permit for Forest Areas

The IPPKH application itself can be submitted by the minister, governor, mayor, head of a legal entity/business entity, or individuals, groups of people and/or communities. However, there are several conditions that need to be fulfilled before applying for IPPKH, which include:

1. The IPPKH area for mining activities in production forest areas that are burdened by forest utilization permits may be considered at a maximum of 10% of the effective area of each forest utilization permit.
2. The IPPKH area for mining activities on islands that are considered small islands can be considered at a maximum of 10% of the area of production forest and protected forest on the island concerned.
3. Applicant Eligibility: Ministers, ministerial-level officials or heads of non-ministerial government agencies, governors, regents/mayors, heads of legal entities/business entities, and individuals, groups of people and/or communities.
4. Technical Requirements: environmental permits, environmental feasibility permits and AMDAL or UKL-UPL documents for activities that are required to prepare AMDAL or UKL-UPL in accordance with statutory provisions.
5. Technical Requirements:1. Company Establishment Deed; 2. Business License in the form of SIUP, NPWP; 3. Map 1:50,000 for an area of > 10,000 ha, or 1:10,000 for an area of < 10,000 ha with reference to the RBI map, and 5. Statement letter from the Head of Legal Entity/Business Entity with stamp duty.
6. Administrative Requirements such as:
   1. Licenses/agreements issued by officials according to their field of business such as Mining Business License, Electricity Supply Business License, etc;
   2. Deed of incorporation and its amendments;
   3. Legal entity profile;
   4. NPWP that has been validated by an authorized official;
   5. Latest financial statements that have been audited by a public accountant;
   6. A statement in the form of a notarial deed stating the ability to fulfill all obligations and bear all costs in connection with the application.

Procedures for Making a Borrow-to-Use Permit for Forest Areas

After fulfilling all the requirements, you can then apply for an IPPKH to the Minister of Environment and Forestry, by following the following procedure:

1. The applicant submits a written application by attaching the required documents
2. The officer checks the completeness and verifies the required documents. If not complete and correct, the application file will be returned to the Applicant to be completed.
3. Head of service gives disposition for follow-up process
4. The head of the field checks the disposition sheet from the head of the service and forwards it to the head of the section according to his authority.
5. Section head studies the disposition sheet and completeness of the file
6. The executor prepares a letter requesting technical considerations to the relevant agencies
7. The head of the relevant agency provides technical considerations based on the results of the field review
8. Section heads examine applications, required documents, technical considerations, and field review reports
9. Officer drafts permit script
10. Section head checks the draft license text
11. Head of field checks draft license text
12. Head of service signs the license script
13. The executor numbers and dates the permit script
14. Applicant receives a copy of the license
15. The executor documents the permit script

The IPPKH procedure takes 11 working days from the receipt of a complete and correct application.

KH Contact

For KH friends who also want to apply for an IPPKH, don’t forget to comply with all the requirements and procedures according to the provisions above! Moreover, you also need to first complete the required documents related to the legality of the business entity such as the deed of establishment, NPWP, notary deed, business license, and others. Well, how can you complete these various legality documents? Yep, you can take care of it with Kontrak Hukum. Kontrak Hukum can help you to make the necessary general licenses easily and quickly, such as business licenses, notary deeds that you will receive digitally in a maximum of 2 days and physical copies in a maximum of 5 days since the digital deed is received, as well as NPWP which will be sent directly by the Tax Office to your domicile, and others. To find out more details, immediately visit the page https://kontrakhukum.com/memulai-usaha/ or contact Kontrak Hukum via the following link Ask KH and Direct Message (DM) to our Instagram social media @kontrakhukum.