GOVERNMENT *EGULATIONS THE PREVENTION AND ERADICATION OF FOREST DESTRUCTION (Law No. 18/2013 dated August 6, 2013)

BY THE GRACE OF GOD ALMIGHTY e. forest destruction has become an organized and

THE PRESIDENT OF THE REPUBLIC OF INDONESIA, transnational crime which has an extraordinary

impact, is committed through sophisticated mo-

Considering : dus operandi and has threatened the continuity a. forests as a gift from the God Almighty to the In- of public life so that a firm legal basis for effec-

donesian nation are wealth controlled by the state tive law enforcement is needed to prevent and

for the benefit of mankind and that the Indone- eradicate forest destruction effectively and give

sian nation must thank God for the forests, man- deterrent effects;

age and use the forests optimally and conserve f the existing law and regulation are far from ad-

the forests for the greatest possible prosperity of equate to eradicate organized forest destruction

the people as stipulated in the 1945 Constitution effectively; and

of the Republic of Indonesia; based on considerations in letters a, b, c, d, e and b. forests must be utilized and used in an appropri- f, it is necessary to enact law on the protection

ate and sustainable way by considering ecologi- and oradiratinn nf fnroct rioetri irtinn •

cal, social and economic functions and ensuring

the continuity of forests for the present and fu- In view of :

ture generations; 1. Article 20, Article 21, Article 28H paragraph (1), c. there has been forest destruction caused by the and Article 33 paragraph (3) of the 1945 Consti- . I utilization and use of forest land in breach of the ' tution: and

law and regulation; 2. Law No. 41/1999 ion Forestry (Statute Book of 1999 d. forest destruction particularly illegal logging, No. 167, Supplernent to Statute Book No. 3888) as

legal mining and illegal plantations has inflicted already amended by Law No. 19/2004 on the Pas-

state losses, disrupted social and cultural life, de- sage of GovernMent Regulation in lieu of Law No.

stroyed the environment, and raised global warm- 1/2004 on Amendment to Law No. 41/1999 on

ing which now becomes national, regional and Forestry into LaW (Statute Book of 2004 No. 86,

international issues; Supplement to Statute Book No. 4412).

Business He 8589/8-15-2014 27 GOVERNMENT REGULATIONS

With Joint Approval from manner.

THE HOUSE OF REPRESENTATIVES OF 5. Illegal use of forest land is an organized activ-

THE REPUBLIC OF INDONESIA ity carried out in forest area for plantation and/or

and mining without receiving a permit from the minis-

THE PRESIDENT OF THE REPUBLIC OF INDONESIA ter.

. Organized activity is an activity carried out by a

DECIDES : structured group consisting of 2 (two) persons or

more, who act together in a certain time with

To stipulate : the aim of destroying forest, excluding a group

LAW ON THE PREVENTION AND ERADICATION OF of persons living in and around the forest land

FOREST DESTRUCTION. and conducting traditional farming and/or cutting

trees for own interests rather than for commercial

CHAPTER I purposes.

GENERAL PROVISIONS 7. Prevention of forest destruction is every effort

Article 1 made to eliminate any activity of destroying for-

Referred to in this Law as : est.

. Forest is a unit of ecosystem in the form of ex- 8. Eradication of forest destruction is every effort

panse of land containing biological natural re- made to take legal steps against any body de-

sources and dominated by trees in the com- stroying forest directly, indirectly or through other

munity of natural environment which cannot be relevant activity.

separated from one to another. 9. Use of forest is activity to utilize forest land, en-

. Forest land is a certain area stipulated by the gov- vironmental services, wood and non-wood forest

ernment to maintain it as permanent forest. products, and to collect wood and non-wood for-

. Forest destruction is a process, method or act of est products optimally and fairly to promote the

destroying forest through illegal logging, illegal living standard of people by preserving the envi-

use of forest land, or use of permit contradict- ronment.

ing the purpose and aim of the permit in forest 1 10. Use of wood forest products is activity to use

land decided, appointed or being processed by and exploit wood forest products through felling,

the government. rejuvenation, transportation, processing and mar-

4. Illegal logging is all activities to use forest product keting without destroying the environment and

in the form of wood in an illegal and organized reducing the main function of forest. 28 11. Wood forest product utilization permit is a permit cal natural resources and their ecosystem

issued by the Minister to use wood forest prod- 18. Witness is a person who can give information for

ucts in production forest through harvesting or the purpose of investigation, indictment and trial

felling, enrichment, maintenance and marketing. about a criminal case that he/she has heard, seen

12. Letter of forest product legality is a document and experienced himself/herself.

serving as legal evidence of forest product in 19. Reporter is a person who informs alleged, ongo-

each segment of activity in the management of ing or recent forest destruction to the authorized

forest products. official.

13. Wood forest product is forest product in the form 20. Informant is a person who informs secretly al-

of log, small log, processed wood, or plat origi- leged, ongoing or recent forest destruction to the

nating from forest land. authorized official.

14. Tree is a tree which has wood trunk with a diam- 21. Everybody is an individual and/or corporation that

eter of 10 (ten) centimeters or more measured at commits forest destruction in an organized way in

a height of 1.50 (one point fifty) meters above the jurisdiction of Indonesia and/or having a legal

the land surface. consequence in the jurisdiction of Indonesia.

15. Forestry police are certain officials at the central 22. Corporation is an organized group of persons and/

and/or regional forestry agency who according or assets either in the form of legal entity or not.

to the characteristics of their job organize and/ 23. Central government, hereinafter called the gov-

or conduct forest protection efforts and by the ernment, is the President of the Republic of lndo-

proxy of law are given special police authority in nesia holing government power of the Republic of

the forestry field and the conservation of biologi- Indonesia as referred to in the 1945 Constitution.

cal natural resources and their ecosystem in a unit 24. Regional government is governor, regent or may-

of command, or and regional apparatuses as the executor of the

16. Official is a person who is ordered or a person regional government.

who ex officio has the authority with a certain 25. Minister is the minister in charge of forestry af-

task and responsibility. fairs.

17. Civil servant investigator, hereinafter abbreviated

into PPNS, is an certain civil servant official at the CHAPTER II

central and regional forestry agency who by law , PRINCIPLE, AIM AND SCOPE

is given special authority to conduct investigation Article 2

in the fields of forest and conservation of biologi- The prevention and eradication of sorest

Business News 8589/8-152O14 29 destruction shall be based on the principles of e. international cooperation;

a. justice and legal certainty; f. protection of witnesses, reporters and informants;

b. continuity; g. financing; and

c. state responsibility; h. sanctions.

d. public participation;

e. Vicarious liability; CHAPTER III

f. priority; and PREVENTION OF FOREST DESTRUCTION

g. integrity and coordination. Article 5

The government and/or regional governments

Article 3 have the obligation to prevent forest destruction.

The prevention and eradication of forest de-

struction is aimed at: Article 6

a. giving legal certainty and deterrent effect to peo- (1) To prevent forest destruction, the government

pie involved in forest destruction; shall make policies in the form of :

b. ensuring the sustainability of forest by conserving a. cross-sectoral coordination in preventing and

forest without destroying the environment and eradicating forest destruction;

surrounding ecosystem; b. fulfilling the need for apparatuses to safe-

c. optimizing the management and use of forest guard forests;

products by considering the balance of forest c. incentives for parties who have contributed

function to create public welfare; and to forest conservation;

d. improving the capability and coordination of law d. directory map of forest areas and/or geo-

enforcement officers and relevant parties in the graphical coordinate as a judicial basis of for-

prevention and eradication of forest destruction. est borders; and

e. fulfilling the need for facilities and infrastruc- Article 4 tures to prevent and eradicate forest destruc- The scope of prevention and eradication of tion.

torest destruction covers: (2) The government and regional governments shall

a. prevention of forest destruction; according to their respective authority designate

b. eradication of forest destruction; alternative wood sources by encouraging the de-

c. institution; velopment of productive timber estate and pro-

d. public participation; cessing technology. 30 BLstres 1894 -

GOVERNMENT REGULATIONS

(3) In addition to the policies as referred to in para- destruction criminal offenses are done based on the

graph (1), efforts to prevent forest destruction code of penalty, except otherwise stipulated by this

are made through the elimination of chances by Law.

promoting public participation.

(4) Further provisions on the designation of alterna- Article 10

tive wood sources as referred to in paragraph (2) The cases of forest destruction shall be given

are to be provided for in a ministerial regulation priority over other cases to be brought to justice to

settle them as quickly as possible.

Article 7

The prevention of forest destruction shall be Part Two

done by the public, legal entities, and/or cooperatives Provisions on Forest Destruction Acts

obtaining forest utilization permits. Article 11

(1) The forest destruction acts as referred to in this

CHAPTER IV Law covers illegal logging and/or illegal use of for-

ERADICATION OF FOREST DESTRUCTION est land done in an organized way.

Part One (2) Organized forest destruction acts are acts taken

General by a structured group of 2 (two) people or more

Article 8 who act joint in a certain time with the aim of

(1) The government and regional governments have destroying forests.

the obligation to eradicate forest destruction. (3) The structured group as referred to in paragraph

(2) The eradication of forest destruction is done by (2) does not include a group of people living in

taking legal measures against culprits of forest and around forest land and conducting traditional

destruction, directly, indirectly, or by other relat- farming and/or felling trees outside conservation

ed means. forest land and protected forest for own interest

(3) The legal measures as referred to in paragraph and not for commercial purposes.

(2) cover preliminary investigation, investigation, (4) The people living in and around forest land and

indictment and examination in court session. felling trees outside conservation forest land and

protected forest for own interest and not for corn-

Article 9 mercial purposes shall secure a permit from the

The preliminary investigation, investigation, authorized official according to the law and regu-

indictment and examination in court session in forest ation.

Business News 85891 15-2014 31 (5) Provisions on the felling of trees outside conser- air;

vation forest land and protected forest for own k. receiving, buying, selling, receiving exchange of,

interest and not for commercial purposes are to receiving the custody of, and/or possessing forest

be provided for in a government regulation. products believed to have originated from illegal

logging;

Article 12 I. buying, marketing, and/or processing wood forest

Anybody is banned from : products illegally taken or collected from forest

a. felling trees in forest land in breach of a forest land; and/or

utilization permit; m. receiving, selling, receiving exchange of, receiv-

. felling trees in forest land without holding a per- ing custody of, keeping and/or possessing wood

mit issued by the authorized official; forest products illegally taken or collected from

c. felling trees in forest land illegally; forest land.

d. loading, unloading, releasing, transporting, con-

trolling and/or possessing the result of felling in Article 13

forest land without a permit; (1) The illegal felling of trees in forest land as referred

e. transporting, controlling or possessing wood for- to in Article 12 letter c is the felling of trees in for-

est product without a permit of legality of forest est land within a radius or distance of up to :

product; a. 500 (five hundred) meters from the side of

. carrying tools usually used to fell, cut or divide dam or lake;

trees in forest land without a permit from the au- b. 200 (two hundred) meters from the side of

thorized official; water source and the right and left side of

. bringing heavy duty equipment and/or other river in swampy area;

equipment usually or allegedly used to transport c. 100 (a hundred) meters from the left and

forest products in forest land without a permit right side of river;

from the authorized official; d. 50 (fifty) meters from the left and right side

. using wood forest products believed to have of tributary;

come from illegal logging; e. 2 (two) times the depth of ravine from the

i. circulating wood from illegal logging by land, sea side of ravine; and/or

or air; f. 130 (a hundred and thirty) times the differ-

j. smuggling wood out or in the territory of the Uni- ence between the highest tide and the lowest

tary Republic of Indonesia by river, land, sea or tide from the coastside.

32 Business News 8589 1 8- 5-2014 GOVERNMENT REGULATIONS

(2) The felling of trees in forest land as referred to without a permit from the Minister;

in paragraph (1) letter a is excepted to activities c. carrying and/or receiving the custody of min-

which have strategic goals and cannot be avoided ing products from mining activities in forest

by securing a special permit from the Minister, land without a permit;

d. selling, controlling, possessing, and/or keep-

Article 14 ing mining products from mining activities in

Anybody is banned from: forest land without a permit; and/or a. falsifying a statement of legality of wood forest e. buying, marketing and/or processing mining

product; and/or products from mining activities in forest land b. using a fake statement of legality of wood forest without a permit.

product. (2) Anybody is banned from :

a. bringing heavy duty equipment and/or other

Article 15 equipment usually or allegedly used to con-

Anybody is banned from abusing a wood for- duct mining activities and/or carry plantation est product transport document issued by the autho- products in forest land without a permit from rized official. the Minister;

b. conducting plantation activities in forest land

Article 16 without a permit from the Minister;

Anybody transporting wood forest product c. carrying and/or receiving the custody of plan- shall hold a document serving as a statement of legal- tation products from plantation activities in ity of forest product according to the law and regula- forest land without a permit; tion. d. selling, controlling, possessing, and/or keep-

ing plantation products from plantation activi-

Article 17 ties in forest land without a permit; and/or

(1) Anybody is banned from : e. buying, marketing and/or processing planta-

a. bringing heavy duty equipment and/or other tion products from plantation activities in for-

equipment usually or allegedly used to con- est land without a permit.

duct plantation activities and/or carry mining

products in forest land without a permit from Article 18

the Minister; (1) Besides criminal sanctions, legal entities or cor-

b. conducting mining activities in forest land porations violating provisions as referred to in

Business News 8589/8-15-2014 33 GOVERNMENT REGULATIONS

Article 12 letters a, b, and c, Article 17 para- donating, placing for custody, bringing abroad,

graph (1) letters b, c, and e, and Article 17 para- and/or exchanging money or other securities and

graph (2) letters b, c, and e are subject to admin- other wealth found or believed to come from il-

istrative sanctions in the form of : legal logging and/or illegal use of forest land; and/

a. government coercion; Or

b. penalty payment; and/or i. concealing or disguising the origin of wealth found

c. revocation of permit. or believed to originate from illegal logging and/or

(2) The mechanism and procedure of imposing ad- illegal use of forest land as if the wealth was legal

ministrative sanctions as referred to in paragraph wealth.

(1) are provided for in a government regulation.

Article 20

Article 19 Anybody is banned from preventing, obstruct-

Anybody who is in or outside the Indonesian ing and/or foiling directly or indirectly any effort of

territory is banned from: eradicating illegal logging and/or illegal use of forest

a. ordering, organizing, or mobilizing illegal logging land.

and/or illegal use of forest land;

. taking part or assisting in illegal logging and/or II- Article 21

legal use of forest land; Anybody is banned from using the result of

c. engaging in a conspiracy to conduct illegal log- illegal logging and/or illegal use of forest land from

ging and/or illegal use of forest land; conversion forest.

. funding illegal logging and/or illegal use of forest

land directly or indirectly; Article 22

e. using fund believed to have originated from illegal Anybody is banned from obstructing and/or

logging and/or illegal use of forest land; foiling preliminary investigation, investigation, indict-

f. altering the status of wood from illegal logging ment or examination in a court session of criminal

and/or illegal use of forest land as if the wood offense related to illegal logging and/or illegal use of

was legal, or from legal use of forest land for sale forest land.

to third parties in the domestic or foreign market;

g. utilizing wood from illegal logging by altering the Article 23

shape, and size including the use of waste; Anybody is banned from intimidating and/oi

. placing, transferring, paying, spending, granting, threatening the safety of officers tasked with pre-

34 Business News 8589/8-15-2014 venting and eradicating illegal logging and/or illegal a. issuing a permit to use wood forest products and/

use of forest land. or forest land within forest land which is not rel-

evant to their authority;

Article 24 b. issuing a permit to use wood forest products and/

Anybody is banned from: or forest land which is not relevant to the law

a. falsifying a permit for the use of wood forest and regulation;

product and/or the use of forest land; c. harboring the culprits of illegal logging and/or il-

b. using a fake permit for the use of wood forest legal use of forest land;

product and/or the use of forest land; and/or d. taking part or assisting in illegal logging and/or il-

c. signing or selling a permit issued by the autho- legal use of forest land;

rized official except with approval from the minis- e. conducting a conspiracy leading to illegal logging

ter and/or illegal use of forest land;

f. issuing a statement of legality of forest products

Article 25 without right;

Anybody is banned from destroying forest g. ignoring tasks deliberately; and/or

protection facilities and infrastructures. h. ignoring tasks.

Article 26 Part Three

Anybody is banned from destroying, remov- Investigation, Indictment and

ing or eliminating the outer boundary poles of forest Examination at Court Session

land, function borders of forest land, or borders of Paragraph 1

forest land touching state borders that may lead to a Investigation and Indictment

change in the shape and/or area of forest land. Article 29

In addition to investigators of the Indonesian

Article 27 National Police, PPNS are given special authority as

Any official who knows the acts as referred investigators as referred to in the Penal Code.

to in Articles 12, 13, 14, 15, 16, 17, and 19 shall

take action according to their authority. Article 30

PPNS as referred to in Article 29 have the

Article 28 authority to :

Any official is banned from : a. check the truth of report or information on forest

Business News 8589/8152O14 35 destruction criminal offenses;

. question persons or corporate bodies believed to Article 31

have committed forest destruction criminal of- , The jurisdiction of PPNS as referred to in Ar-

fenses; ticle 29 covers the entire territory of the Unitary Re-

. ask for information and evidence from persons public of Indonesia including customs areas.

or corporate bodies in connection with forest de-

struction criminal offenses; i Article 32

. audit financial accounts, records and other docu- PPNS as referred to in Article 29 shall notify

ments related to forest destruction criminal of- public prosecutors of the start of investigation and

fenses; convey the results of investigation to the public pros-

e. conduct an audit in certain places believed to ecutors after coordinating with investigators of the

keep evidence, financial accounts, records and Indonesian National Police.

other documents and seize materials and goods

resulting from criminal offenses that can be used Article 33

as evidence in forest destruction criminal offens- To obtain adequate preliminary evidence, in-

es; vestigators can use reports from the community and/

. make arrest, detention, search and confiscation or relevant agencies.

. ask for assistance from expert in investigating

forest destruction criminal offenses; Article 34

h. stop investigation in case of no evidence related (1) Based on the adequate preliminary evidence as

to forest destruction criminal offenses; referred to in Article 33, investigators have the

i. summon people to be questioned and investigat- authority to ask the communication executing

ed as suspects or witnesses; agency to:

make and sign official reports and other letters re- a. open, check and seize letters or parcels sent

lated to investigation of forest destruction crimi- by mail or other courier services related to il-

nal offenses; and legal logging being investigated; and/or

. take pictures of and/or record people, goods, b. ask for information on talks by phone or other

transport means, or anything else that can be communication means believed to have beer

used as evidence of criminal offenses related to used to prepare, plan and commit forest de '

forest, forest land and forest products by means struction.

of camera and/or tape recorder. (2) The acts as referred to in paragraph (1) letter k

36 Business News 8589/8-15-2014 can only be taken by securing a permit from the (5) If no evidence is obtained from the investigation

chief of the relevant district court at the request of suspects or defendants, at the request of in-

of investigators for a maximum period of 1 (one) vestigators, public prosecutors or judges, the

year. leadership of banks shall revoke the blockade of

(3) The chief of the relevant district court shall is- the accounts.

sue a permit to ask for information as referred to

in paragraph (2) no later than 7 (seven) working Article 36

days after receiving the request from investiga- For the purposes of investigation, indictment

tors. or examination at court sessions, investigators, public

(4) The acts as referred to in paragraphs (1) and (2) prosecutors or judges have the authority to:

are reported and accounted for to the superior of a. ask for data of wealth and data of taxation of

the investigators, suspects or defendants from the relevant working

unit;

Article 35 b. ask for help from the Financial Transaction Re-

(1) For the purposes of investigation, indictment or ports and Analysis Center to investigate the fi-

examination at court sessions, investigators, pub- nancial data of suspects;

lic prosecutors or judges have the authority to c. ask the relevant agency to impose an overseas

ask for information from banks about the financial travel ban on suspects;

condition of suspects or defendants. d. name persons as suspects and put them on the

(2) The request for information from banks as re- wanted list; and/or

ferred to in paragraph (1) is filed to the leadership e. ask the leadership or superior of suspects to sus-

of the Financial Service Authority. pend them from their posts.

(3) The leadership of the Financial Service Authority

shall meet the request as referred to in paragraph Article 37

(2) no later than 3 (three) working days after re- The instruments used to investigate instru-

ceiving the request. nnents to commit forest destruction cover:

(4) Investigators, public prosecutors or judges have a. evidence as referred to in the Penal Code; and/or

the authority to ask banks to block the accounts b. other evidence in the form of :

of suspects or defendants believed to have origi- 1. electronic information;

nated from illegal logging while investigation, in- 2. electronic documents; and/or

dietment andlor examination are going on. 3. map.

Business News 589/8-15-2014 37

and the high cost of safeguarding and securing

Article 38 evidence, evidence in the form of wood shall be

(1) Investigators arrest people who are strongly separated by making an official report of separat-

believed to have committed forest destruction ing evidence; and

criminal offenses based on adequate preliminary e. forestry technical agency shall appoint wood test-

evidence within 2x24 (two times twenty-four) ing and measuring officers at the request of in-

hours. vestigators by considering speed to conduct in-

(2) If the period of time to conduct investigation as vestigation.

referred to in paragraph (1) is not enough, the

next superiors of investigators can issue a permit Article 40

to extend the arrest period to 3 x 24 (three times (1) Investigators confiscating evidence of forest de-

twenty-four) hours. struction criminal offenses, either evidence of

finding or confiscation, shall seal the evidence

Article 39 and make an official report of confiscation on the

To expedite the settlement of forest destruc- day of confiscation containing at least:

tion cases: a. name, type group, characteristics and quan-

. investigators shall complete and convey dossiers tity;

of the cases to public prosecutors no later than b. place, hour, day, date, month and year of

60 (sixty) days after the start of investigation and confiscation;

the period of time can be extended to a maximum c. information on the owner of wood or the

of 30 (thirty) days; person controlling wood from illegal logging;

. if the results of investigation are not complete, and/or

public prosecutors shall conduct investigation for d. signatures and full identities of investigators

a maximum of 20 (twenty) days and the period of conducting the confiscation.

time can be extended to a maximum of 30 (thirty) (2) Investigators shall be responsible for keeping the

days; evidence as referred to in paragraph (1) under

. public prosecutors shall delegate cases to court their control.

no later than 25 (twenty-five) days after the in- (3) Investigators confiscating the evidence as re-

vestigation has been completed; ferred to in paragraph (1) shall :

d. in areas which are difficult to reach due to natural a. report and ask for a confiscation permit;

and geographical factors or poor transportation b. ask for appropriation permit from the chair-

38 Business News 8589/8 152814

man of the local district court within 3 x 24 Article 42

(three times twenty-four) hours after the con- Any official who does not carry out the ob-

fiscation is conducted; and ligation as referred to in Articles 39, 40, and 41 is

c. send a copy to the chief of the local public subject to administrative sanctions according to the

prosecutor's office. law and regulation.

(4) Investigators confiscating the evidence of confis-

cation as referred to in paragraph (1) shall: Article 43

a. report and ask for a confiscation permit; Appropriate use of evidence as referred to in

b. ask for an auction permit for perishable goods Article 41 is intended :

from the chief of the local district court within a. to meet the need to prove cases;

3 x 24 (three times twenty-four) hours after b. to serve the interest of scientific development;

the confiscation is conducted; and c. to be destroyed; and/or

c. send a copy to the chief of the local public d. to serve the public or social interests.

prosecutor's office.

(5) The deadline for reporting as referred to in para- Article 44

graph (4), for areas which are difficult to reach (1) Evidence of wood from illegal logging and/or ii-

due to natural or geographical factor or poor legal use of forest land for conservation forest is

transportation can be extended to a maximum of destroyed, except it will be used to prove cases

14 (fourteen) days. and conduct researches.

(6) The chief of the district court shall issue or re- (2) Evidence of wood finding from illegal logging out-

fuse to issue a permit/approval of confiscation side conservation forest is used to serve public or

applied for by investigators within 2 x 24 (two social interests.

times twenty-four) hours after the application is (3) Evidence of confiscated wood from illegal logging

received, outside conservation forest can be auctioned ac-

cording to the law and regulation because it can

Article 41 easily be damaged or the cost of keeping it is too

The chief of the local district court shall de- high.

;ide appropriate use of evidence no later than 7 (sev- (4) Proceeds from the auction of confiscated wood

:in) days after receiving an application from investiga- as referred to in paragraph (3) shall be kept in

ors as referred to in Article 40 paragraph (3). government banks as evidence of cases at court.

(5) The appropriation of evidence of cases as re-

Business News 89/8-15-2014 39 GOVERNMENT REGULATIONS

ferred to in paragraph (4) is done according to the (2) Evidence of plantation as referred to in paragraph

court's verdict which has fixed legal force. (1) shall be used for a maximum of 1 (one) cy-

cle until forest land restoration process has been

Article 45 completed.

(1) Evidence of finding of plantation crops and/or (3) If evidence of plantation is used as referred to in

mining product along with supporting facility and paragraph (2) the government can assign state-

infrastructure from criminal offenses through il- owned companies engaged in the plantation sec-

legal use of forest land can be auctioned and pro- tor.

ceeds of the auction can be used to serve public (4) Evidence of mining concession as referred to in

or social interests. paragraph (1) can be given permits according to

(2) Evidence of confiscated plantation crops and/or the law and regulation.

mining product along with supporting facility and

infrastructure from criminal offenses through il- Article 47

legal use of forest land can be auctioned because (1) In the interest of investigation related to the quan-

it can easily be damaged or the cost of keeping it tity of evidence aboard ship or other water trans-

is too high. port means, load capacity survey method, ship

(3) Proceeds from the auction of evidence of con- scale reading inspection method or other method

fiscated plantation crops and/or mining product commonly used in the shipping sector can be

along with supporting facility and infrastructure used.

as referred to in paragraph (2) are kept in govern- (2) The methods as referred to in paragraph (1) are

nnent banks as evidence of case in court. conducted by qualified institutions according to

(4) The appropriation of evidence of cases as re- the law and regulation.

ferred to in paragraph (3) is done according to the

court's decision which has fixed legal force. Article 48

Provisions on the procedure of keeping evi-

Article 46 dence of forest destruction confiscated as referred

(1) Evidence of plantation and/or mining concession to in Article 40 paragraph (2) and the procedure of

from illegal use of forest land which has received earmarking evidence as referred to in Articles 44, 45

the court's decision with fixed legal force shall and 46 are to be provided for in a ministerial regula.

Gonstantly be returned to the government to be tion. , reforested according to its function.

40 Business News 8589/8 15 2O14

GOVERNMENT REGULATIONS

Article 49 Paragraph 2

(1) Investigators shall apply to the chief of the local Examination in Court Session

district court for the auction of confiscated evi- Article 51

dence in the form of wood from illegal logging as (1) If defendants have been summoned legally but

referred to in Article 44 paragraph (3) and found do not show up in a court session without legal

evidence and confiscated evidence in the form of reasons, the case can be examined and decided

plantation crops and/or mining products and their without the presence of the defendants.

supporting facility and infrastructure from illegal (2) The verdict meted out without the presence of

use of forest land as referred to in Article 45 para- defendants shall be announced by the public

graphs (1) and (2). prosecutor on the announcement boards at the

(2) The auction of evidence as referred to in para- court, the office of regional government, and/or

graph (1) is done by the State Auction Board no informed to the defendants or their proxies.

later than 14 (fourteen) working days. (3) Defendants or their proxies can propose a legal

(3) The auction of evidence as referred to in para- effort to challenge the verdict as referred to in

graph (2) is done by the State Auction Board paragraph (1) no later than 14 (fourteen) days af-

transparently after examination, calculation and ter the verdict is meted out, announced, or noti-

pricing of evidence is completed by the institu- fied to the defendants who are not present.

tion.

(5) Parties affiliated to a suspect in a forest destruc- Article 52

tion case are banned from taking part in the auc- (1) The cases of forest destruction shall be examined

tion as referred to in paragraph (3). and decided by the district court no later than 45

(6) The examination, calculation or pricing of evi- (forty-five) working days after receiving the del-

dence as referred to in paragraph (3) shall be egation of the cases from public prosecutors.

done by persons who have competence and cer- (2) In case of appeal against the court's verdict as re-

tificates from accredited institution. ferred to in paragraph (1), the cases of forest de-

struction shall be examined and decided no later

Article 50 than 30 (thirty) working days after the appellate

Compensation for losses caused by forest de- court has received dossiers of the cases.

3truction does not eliminate the sentence of culprits (3) In case of appeal against the appellate court's

)f forest destruction. verdict, the cases of illegal logging shall be exam- . ined and decided no later than 50 (fifty) working

Business News 589/8-15-2014 41

days after the Supreme Court has received the on a court verdict with fixed legal force for

dossiers of the cases. committing a criminal offense carrying a sen-

tence of 5 (five) years or more in jail;

Article 53 f. never involved in a disgraceful act;

(1) The examination of cases of forest destruction g. be smart, honest and having high moral integ-

as referred to in Article 52 paragraph (1) at dis- rity and good reputation;

trict court is done by a panel of 3 (three) judges h. not being a member of the executive board of

consisting of one career judge at the local district political party; and

court and two ad hoc judges. i. abandoning structural post and other posts

(2) The ad hoc judges as referred to in paragraph (1) while they are ad hoc judges.

are appointed by the President at the proposal of

the Chairman of the Supreme Court of the Repub- CHAPTER V

lic of Indonesia. I- Ullt I Db I NUL I ION FFILVLN I ION AND LNAUI-

(3) After this Law comes into force the Chairman of CATION INSTITUTION

the Supreme Court shall propose ad hoc judge Article 54

candidates to be appointed through a Presidential (1) To prevent and eradicate forest destruction, the

Decree to examine the cases of forest destruc- President shall form an institution in charge of

tion. preventing and eradicating forest destruction.

(4) In proposing ad hoc judge candidates as referred (2) The institution as referred to in paragraph (1) is

to in paragraph (3), the Chairman of the Supreme seconded and responsible to the President.

Court shall announce them to the public. (3) The institution as referred to in paragraph (1) con-

(5) To become ad hoc judges, the following qualifica- sists of:

tions shall be met: a. element of the Forestry Ministry;

a. Indonesian citizen; b. element of the Indonesian National Police;

b. to be devout to the God Almighty; c. element of the Attorney General's Office; and

c. aged at least 40 (forty) years at the time of d. other related elements.

appointment; (4) The tasks of the institution as referred to in para-

d. graduating from the school of law or other graph (1) are carried out based on this Law.

graduates having expertise and experience

for at least 10 (ten) years in the forestry field; Article 55

e. never being sentenced to imprisonment based (1) The institution is led by a chairman assisted by E

42 Business News 589/8 15 2014 secretary and several deputies. fenses;

(2) The secretary as referred to in paragraph (1) b. administering preliminary investigation and

comes from government element and is tasked investigation of forest destruction criminal of-

with organizing administrative support to the ex- fenses;

ecution of the institution's tasks and responsibili- c. conducting anti-forest destruction campaigns;

ties. d. building and developing an information sys-

(3) The deputies as referred to in paragraph (1) are in tem to prevent and eradicate forest destruc-

charge of: tion in an integrated way;

a. prevention; e. empowering the public in an effort to prevent

b. legal action; and eradicate forest destruction;

c. law and cooperation; and f. establishing cooperation and coordination

d. internal audit and public complaints, among law enforcement agencies in eradicat-

;4) To carry out its tasks and authority, the institu- ing forest destruction;

tion can form a task force as an executing ele- g. announcing the execution of tasks and au-

ment. thority periodically to the public according to

5) The task force eradicates strategic forest de- the law and regulation; and

struction starting from investigation to indictment h. issuing permits to use evidence in the form

throughout the Unitary State of the Republic of of wood found in the eradication of forest de-

Indonesia including customs areas at the instruc- struction from outside conservation forest for

tion of the chief and/or deputies of the institution, social interests.

6) Further provisions on the formation, organization- (2) Further provisions on the execution of tasks as

al structure and work mechanism of the institu- referred to in paragraph (1) are to be provided for

tion are to be provided for in a presidential regula- in a presidential regulation.

tion.

Article 57

Article 56 In preventing and eradicating forest destruc-

I The institution in charge of preventing and eradi- tion, the institution shall report the results of its work

cating forest destruction as referred to in Article to the House of Representatives of the Republic of

54 paragraph (1) is tasked with: Indonesia at least once in 6 (six ) months.

a. conducting preliminary investigation and in-

vestigation of forest destruction criminal of- CHAPTER VI

Business News 858918-15-2014 43

PUBLIC PARTICIPATION nesses, witnesses or expert witnesses

Article 58 according to the law and regulation.

(1) The public have the right to :

a. good and healthy environment including the Article 59

quality of the environment produced by for- The public have the obligation to :

ests; a. keep and maintain the conservation of forests;

b. the use of forests according to the law and and

regulation; b. process forests according to the law and regula-

c. efforts to empower the public; and tion.

e. counseling on the importance of forest con-

servation and negative impact of forest de- Article 60

struction. The public have the obligation to provide oral (2) In addition to the right as referred to in paragraph or written information to the authorized party if they (1), to prevent and eradicate forest destruction, know or find an indication of forest destruction.

the public also have the right to: a. find and obtain information on alleged forest Article 61

destruction; The public participate in the prevention and

b. receive services in finding, obtaining and pro- eradication of forest destruction by :

viding information on alleged forest destruc- a. forming and building anti-forest destruction move-

tion and alleged abuse of permits to law en- ment social networks;

forcers; b. involving and becoming partners of forest de-

c. find and obtain information on permits issued struction eradication institution in the prevention

by the relevant regional government to man- and eradication of forest destruction;

age forests; c. promoting the awareness of the importance of

d. give suggestions and views in a responsible conserving forests and mitigating the negative

way to law enforcers; and impact of forest destruction;

e. receive legal protection in : d. providing oral or written information to the autho-

1. exercising their rights as referred to in let- rized party related to the prevention and eradica

ters a, b, and c; and tion of forest destruction;

2. the process of preliminary investigation, e. participating in the effort to supervise the law en

investigation, and trial as reporting wit- forcement in the eradication of forest destruction 44 Business News 85891 8-15-2814 and/or f. carrying out other activities aimed at preventing Article 65

and eradicating forest destruction. (1) The cooperation as referred to in Article 64 can

be done based on an agreement.

Article 62 (2) In case of no agreement as referred to in para-

The institution in charge of eradicating forest graph (1), the cooperation can be done based on destruction shall establish partnership with organiza- good relations under reciprocal principles. tions or non-governmental organizations engaged in the forestry sector or the environmental sector as Article 66 well as social organizations in providing liaison, ser- (1) The government establishes international cooper- vice and support to the public.. ation to prevent illegal wood trading and/or wash-

ing.

Article 63 (2) The government has the obligation to make an

The rights and obligations as referred to in Ar- effort to recover funds from the losses of forest ticle 58 up to Article 60 shall be executed by sticking destruction criminal offenses. to the principles or provisions in the law and regula- (3) The effort to recover funds from the losses as tion. referred to in paragraph (1) is made by :

a. blocking or freezing temporarily wealth with

CHAPTER VII the aim of preventing any effort to convert or

INTERNATIONAL COOPERATION transfer the wealth in order that certain peo-

Article 64 pie or all people do not have business with

(1) The government can establish international co- the wealth obtained or likely obtained from

operation with other countries in preventing and forest destruction activities; and/or

eradicating forest destruction by considering and b. confiscating the right to the wealth or profit

safeguarding national interests, obtained or likely obtained from forest de-

'2) The international cooperation in preventing and struction activities based on a court verdict in

eradicating forest destruction can be in the form Indonesia or foreign country.

of :

a. bilateral cooperation; Article 67

b. regional cooperation; or (1) International cooperation to prevent forest de-

c. multilateral cooperation. struction can be done to :

Business News 8589/ 8-15-2014 45 a. manage forests in a sustainable way; Within the framework of preliminary inves-

b. conserve and restore forest land; tigation, investigation, indictment and court exami-

c. empower people; and nation of forest destruction cases, the government

d. strengthen the internationally-recognized sys- can establish regional and international cooperation

tem of verifying and certifying wood legality. through bilateral or multilateral forum according to

(2) The international cooperation as referred to in the law and regulation.

paragraph (1) is aimed at reducing deforestation

as a result of forest destruction as well as at con- Article 71

serving forests. International cooperation within the frame-

work of investigation as referred to in Article 70 cov-

Article 68 ers:

The government shall encourage international I a. identities and activities of anybody, national or

cooperation in terms of funding from the international foreign, accused of involvement in forest destruc-

community and international private investment to tion;

prevent forest destruction. b. transfer of criminal gains or wealth originating

from forest destruction;

Article 69 c. transfer of wealth, equipment or other instru-

(1) To carry out international cooperation in prevent- nnents used or intended to be used in forest de-

ing and eradicating illegal logging as referred to struction;

in Article 64, the Minister can act for and under d. all chains of criminal offenses ranging from illegal

the name of the Government of the Republic of wood washing to money laundering;

Indonesia to establish international cooperation e. identities and activities of countries washing ii-

with other countries, international organizations, legal wood from forest destruction in Indonesia;

and/or foreign financial institutions, particularly to and/or

eradicate illegal logging. f. tracing, freezing, seizing and recovering assets re-

(2) The international cooperation as referred to in suiting from forest destruction criminal offenses.

paragraph (1) is carried out according to the law,

convention and generally-accepted international Article 72

practices. Cooperation within the framework of inves

tigation as referred to in Article 70 is done througl , Article 70 cooperation with Interpol in each country. 46 Busyness News 858918-15 2014

GOVERNMENT REGULATIONS

Article 73 Article 77

The government can sign accords or agree- The protection of witnesses, reporters and in-

ments with foreign countries to obtain compensation formants covers:

for costs and share gains from the use of wood from a. the protection of their lives, families and wealth,

forest destruction. and the state of being free from threat related to

reports and information they will provide, are pro-

CHAPTER VIII viding or have provided;

FINANCING b. the provision of information on court's verdict;

Article 74 and/or

The expenses needed to implement this Law c. notification in case the convict is set free.

shall be borne by the state budget.

Article 78

Article 75 (1) Reporters and informants cannot be sued legally,

Plan and proposal for budget to eradicate for- either by the penal code or civil code, for the re-

est destruction shall be made by the institution as ports and testimonies they will provide, are pro-

referred to in Article 54. viding or have provided.

: (2) Legal protection does not apply to reporters and

CHAPTER IX informants providing information without good in-

PROTECTION OF WITNESSES, REPORTERS AND tention.

INFORMANTS

Article 76 Article 79

(1) Anybody who becomes a witness, reporter, and A witness who is also a suspect in the same

informant in the prevention and eradication of il- case cannot be freed from a criminal charge if he/

legal logging shall be given special protection by she is lawfully or convincingly proven guilty but his/

the government, her testimonies can be considered by judge to reduce

2) The special protection as referred to in paragraph sentence to be meted out.

(1) is aimed avoiding possible threat to the lives

and/or wealth of witnesses, reporters and infor- Article 80

mants including their families and is given accord- The mechanism of providing legal protection

ing to the law and regulation. of reporters and informants:

Business News 8 89/ 8-15-2014 47 a. reporters and informants receive legal protection a. the reporters and informants ask for a stop to

by considering the following conditions: the protection of the reporters and informants

1. the important characteristics of information if the application is filed at their own initia-

from the reporters and informants; tives;

2. the level of threat to the lives of the reporters b. at the request of the authorized official if the

and informants; request for the protection of the reporters

3. the results of analysis conducted by the and informants is based on the request from

medical team or psychologist on the report- the authorized official;

ers and informants; and c. the reporters and informants violate provi-

4. the track record of crimes ever committed by sions in the agreement;

the reporters and informants. d. the authorized agency opines that the report-

b. the procedure of providing protection to the re- ers and informants no longer need protection

porters and informants, either at their own initia- based on convincing evidence; or

tives or at the request of the authorized official, e. the security protection of reporters and infor-

is done by filing a written application according to mants must be stopped in writing.

the law and regulation.

Article 81

(1) The authorized official shall provide full protection CHAPTER X

to reporters and informants including their fami- to be continued

lies since the statement of readiness is signed.

(2) The security protection of reporters and infor-

mants is stopped for the following reasons : (S)

48 Business News 858918-15-2014 THE PREVENTION AND ERADICATION OF FOREST DESTRUCTION (Law No. 18/2013 dated August 6, 2013) [Continued from Business News No. 8589 page 27-481

CHAPTER X (3) Any corporation which :

CRIMINAL PROVISIONS a. cuts trees in forest land by violating a forest

Article 82 utilization permit as referred to in Article 12

(1) Any individual who knowingly : letter a;

a. cuts trees in forest land by violating a forest b. cuts trees in forest land without holding a

utilization permit as referred to in Article 12 permit issued by the authorized official as re-

letter a; ferred to in Article 12 letter b; and/or

b. cuts trees in forest land without holding a c. cuts trees in forest land illegally as referred to

permit issued by the authorized official as re- in Article 12 letter c, shall be sentenced to a

ferred to in Article 12 letter b; and/or minimum of 5 (five) years and a maximum of

c. cuts trees in forest land illegally as referred to 15 (fifteen) years in jail and be fined a minimum

in Article 12 letter c, shall be sentenced to a of Rp5,000,000,000.00 (five billion rupiah)

minimum of 1 (one) year and a maximum of 5 and a maximum of Rp15,000,000,000.00

(five) years in jail and be fined a minimum of (fifteen billion rupiah).

Rp500,000,000.00 (five hundred million rupi-

ah) and a maximum of Rp2,500,000,000.00

(two billion, five hundred million rupiah). Article 83

(2) If the criminal offense as referred to in paragraph (1) Anybody who knowingly :

(1) is committed by an individual living in and/or a. loads, unloads, releases, transports, controls,

around forest land, the culprit shall be sentenced and/or possesses the result of cutting in for-

to a minimum of 3 (three) months and a maximum est land without a permit as referred to in Ar-

of 2 (two) years in jail and/or be fined a minimum ticle 12 letter d;

of Rp500,000.00 (five hundred thousand rupiah) b. transports, controls, or possesses wood for-

and a maximum of Rp500,000,000.00 (five hun- est products without being equipped with a ;

dred million rupiah). letter of legality of forest products as referred

Business News 8590-8591/8-20-2014 21

winivaaermo

to in Article 12 letter e; and/or (two) years in jail and/or be fined a minimum of

c. uses wood forest products believed to have Rp500,000.00 (five hundred thousand rupiah)

originated from illegal logging as referred to and a maximum of Rp500,000,000.00 (five hun-

in Article 12 letter h shall be sentenced to a dred million rupiah).

minimum of 1 (one) year and a maximum of 5 (4) Corporation which :

(five) years in jail and be fined a minimum of a. loads, unloads, releases, transports, controls,

Rp500,000,000.00 (five hundred million rupi- and/or possesses the result of cutting in for-

ah) and a maximum of Rp2,500,000,000.00 est land without a permit as referred to in Ar-

(two billion, five hundred million rupiah). ticle 12 letter d;

(2) Anybody who because of his/her negligence: b. transports, controls, or possesses wood for-

a. loads, unloads, releases, transports, controls, est products without being equipped with a

and/or possesses the result of cutting in for- letter of legality of forest products as referred

est land without a permit as referred to in Ar- to in Article 12 letter e; and/or

ticle 12 letter d; c. uses wood forest products believed to have

b. transports, controls, or possesses wood for- originated from illegal logging as referred to in ' est products without being equipped with a Article 12 letter h shall be sentenced to a

letter of legality of forest products as referred minimum of 5 (five) years and a maximum of

to in Article 12 letter e; and/or 15 (fifteen) years in jail and be fined a minimum

c. uses wood forest products believed to have of Rp5.000,000,000.00 (five billion rupiah)

originated from illegal logging as referred to in and a maximum of Rp15,000,000,000.00

Article 12 letter h shall be sentenced to a min- (fifteen billion rupiah).

imum of 8 (eight) months and a maximum of

3 (three) years in jail and be fined a minimum Article 84

of Rp10,000,000.00 (ten million rupiah) and (1) Anybody who knowingly carries tools common-

a maximum of Rp1,000,000,000.00 (one bil- ly used to fell, cut or divide trees in forest land

lion rupiah). without a permit from the authorized official as

(3) If the criminal offense as referred to in paragraph referred to in Article 12 letter f shall be sentenced

(1) letter c and paragraph (2) letter c is commit- to a minimum of 1 (one) year and a maximum of

ted by an individual living in and/or around for- 5 (five) years in jail and be fined a minimum of

est land, the culprit shall be sentenced to a mini- Rp250,000,000.00 (two hundred and fifty million

mum of 3 (threel months and a maximum of 2 rupiah) and a maximum of Rp5,000,000,000.00 22 Business News 8590-8591/8-20-2014 •TIO 5

(five billion rupiah). believed to be used to transport forest products in

(2) Anybody who because of his/her negligence car- forest land without a permit from the authorized

ries tools commonly used to fell, cut or divide trees official as referred to in Article 12 letter g shall

in forest land without a permit from the authorized be sentenced to a minimum of 2 (two) years and

official as referred to in Article 12 letter f shall be a maximum of 10 (ten) years in jail and be fined

sentenced to a minimum of 8 (eight) months and a minimum of Rp2,000,000,000.00 (two billion

a maximum of 2 (two) years in jail and be fined rupiah) and a maximum of Rp10,000,000,000.00

a minimum of Rp10,000,000.00 (ten million ru- (ten billion rupiah).

piah) and a maximum of Rp1,000,000,000.00 (2) Any corporation which brings heavy duty equip-

(one billion rupiah). ment and/or other equipment commonly used or

(3) If the criminal offense as referred to in paragraphs believed to be used to transport forest products in

(1) and (2) is committed by an individual living forest land without a permit from the authorized

in and/or around forest land, the culprit shall be official as referred to in Article 12 letter g shall be

sentenced to a minimum of 3 (three) months sentenced to a minimum of 5 (five) years and a

and a maximum of 2 (two) years in jail and/ maximum of 15 (fifteen) years in jail and be fined

or be fined a minimum of Rp500,000.00 (five a minimum of Rp5,000,000,000.00 (five billion

hundred thousand rupiah) and a maximum of rupiah) and a maximum of Rp15,000,000,000.00

Rp500,000,000.00 (five hundred million rupiah). (fifteen billion rupiah).

(4) Any corporation which carries tools commonly

used to fell, cut or divide trees in forest land with- Article 86

out a permit from the authorized official as re- (1) Anybody who knowingly :

ferred to in Article 12 letter f shall be sentenced a. circulates wood from illegal logging by land,

to a minimum of 2 (two) years and a maximum of waters, or air as referred to in Article 12 letter

15 (fifteen) years in jail and be fined a minimum i; and/or

of Rp2,000,000,000.00 (two billion rupiah) and b. smuggles wood from or into the territory of the

a maximum of Rp15,000,000,000.00 (fifteen bil- Unitary State of the Republic of Indonesia by

lion rupiah). river, land, sea, or air as referred to in Article

12 letter j shall be sentenced to a minimum of 1

Article 85 (one) year and a maximum of 5 (five) years in jail

(1) Anybody who knowingly brings heavy duty equip- and be fined a minimum of Rp500,000,000.00

ment and/or other equipment commonly used or (five hundred million rupiah) and a maximum of

Business News 8590-859118-20-2014 23 Rp2,500,000,000.00 (two billion, five hundred Article 12 letter m shall be sentenced to a

million rupiah). minimum of 1 (one) year and a maximum of 5

(2) Any corporation which : (five) years in jail and be fined a minimum of

a. circulates wood from illegal logging by land, Rp500,000,000.00 (five hundred million rupi-

waters, or air as referred to in Article 12 letter ah) and a maximum of Rp2,500,000,000.00

i; and/or (two billion, five hundred million rupiah).

b. smuggles wood from or into the territory of (2) Anybody who because of negligence:

the Unitary State of the Republic of Indonesia a. receives, buys, sells, receive exchange of, re-

by river, land, sea, or air as referred to in Ar- ceive custody, and/or possesses forest prod-

ticle 12 letter j shall be sentenced to a mini- ucts believed to have originated from illegal

mum of 5 (five) years and a maximum of 15 logging as referred to in Article 12 letter k;

(fifteen) years in jail and be fined a minimum b. buys, markets, and/or processes wood forest

of Rp5.000,000,000.00 (five billion rupiah) products originating from forest land taken or

and a maximum of Rp15,000,000,000.00 collected illegally as referred to in Article 12

(fifteen letter I; and/or

billion rupiah). c. receives, sells, receives exchange of, receive

custody of, keeps, and/or possesses wood

Article 87 forest products originating from forest land

(1) Anybody who knowingly : taken or collected illegally as referred to in

a. receives, buys, sells, receive exchange of, re- Article 12 letter m shall be sentenced to a

ceive custody, and/or possesses forest prod- minimum of 8 (eight) months and a maximum

ucts believed to have originated from illegal of 3 (three years in jail and be fined a mini-

logging as referred to in Article 12 letter k; mum of Rp250,000,000.00 (two hundred

b. buys, markets, and/or processes wood forest and fifty million rupiah) and a maximum of

products originating from forest land taken or Rp1,000,000,000.00 (one billion rupiah).

collected illegally as referred to in Article 12 I; (3) If the criminal offense as referred to in paragraphs

and/or (1) and (2) is committed by an individual living

c. receives, sells, receives exchange of, receive in and/or around forest land, the culprit shall be

custody of, keeps, and/or possesses wood sentenced to a minimum of 3 (three) months

forest products originating from forest land and a maximum of 2 (two) years in jail and/

taken or collected illegally as referred to in or be fined a minimum of Rp500,000.00 (five

24 Business News 8590-8591/8-20-2014 hundred thousand rupiah) and a maximum of Article 14; and/or

Rp500,000,000.00 (five hundred million rupiah). c. abuses wood forest product transport docu-

(4) Any corporation which : ment issued by the authorized official as re-

a. receives, buys, sells, receive exchange of, re- ferred to in Article 15

ceive custody, and/or possesses forest prod- shall be sentenced to a minimum of 1 (one)

ucts believed to have originated from illegal year and a maximum of 5 (five) years in jail and

logging as referred to in Article 12 letter k; be fined a minimum of Rp500,000,000.00

b. buys, markets, and/or processes wood forest (five hundred million rupiah) and a maximum

products originating from forest land taken or of Rp2,500,000,000.00 (two billion, five

collected illegally as referred to in Article 12 hundred million rupiah).

letter I; and/or (2) Any corporation which :

c. receives, sells, receives exchange of, receive a. transports wood forest products without

custody of, keeps, and/or possesses wood document serving as a letter of the legality

forest products originating from forest land of forest products according to the law and

taken or collected illegally as referred to in Ar- regulation as referred to in Article 16;

ticle 12 letter m shall be sentenced to a mini- b. falsifies a letter of the legality of wood forest

mum of 5 (five) years and a maximum of 15 products and/or uses a fake letter of the legal-

(fifteen) years in jail and be fined a minimum ity of wood forest products as referred to in

of Rp5.000,000,000.00 (five billion rupiah) Article 14; and/or

and a maximum of Rp15,000,000,000.00 c. abuses wood forest product transport docu-

(fifteen billion rupiah). ment issued by the authorized official as re-

ferred to in Article 15

Article 88 shall be sentenced to a minimum of 5

(1) Anybody who knowingly : (five) years and a maximum of 15 (fifteen)

a. transports wood forest products without years in jail and be fined a minimum of

document serving as a letter of the legality Rp5.000,000,000.00 (five billion rupiah) and

of forest products according to the law and a maximum of Rp15,000,000,000.00 (fif-

regulation as referred to in Article 16; teen billion rupiah).

b. falsifies a letter of the legality of wood forest

products and/or uses a fake letter of the legal- Article 89

ity of wood forest products as referred to in (11 Anybody who knowingly :

Business News 8590-8591/8-20-2014 25 a. conducts mining activities in forest land with- Article 90

out a permit from the Minister as referred to (1) Anybody who knowingly transports and/or re-

in Article 17 paragraph (1) letter b; and/or ceives the custody of mining products originating

b. brings heavy duty equipment and/or other from mining activities in forest land without a per-

equipment commonly used or believed to mit as referred to in Article 17 paragraph (1) letter

be used to conduct mining activities and/or c shall be sentenced to a minimum of 3 (three)

transport mining products in forest land with- years and a maximum of 10 (ten) years in jail and

out a permit from the Minister as referred to be fined a minimum of Rp1,500,000,000.00

in Article 17 paragraph (1) letter a (one billion, five hundred million rupiah) and a

shall be sentenced to a minimum of 3 maximum of Rp5,000,000,000.00 (five billion

(three) years and a maximum of 15 (fif- rupiah).

teen) years in jail and be fined a minimum (2) Any corporation which transports and/or receives

of Rp1,500,000,000.00 (one billion, five the custody of mining products originating from

hundred million rupiah) and a maximum of mining activities in forest land without a permit as

Rp10,000,000,000.00 (ten billion rupiah). referred to in Article 17 paragraph (1) letter c shall

1 (2) Any corporation which : be sentenced to a minimum of 5 (five) years and a

a. conducts mining activities in forest land with- maximum of 15 (fifteen) years in jail and be fined a

out a permit from the Minister as referred to minimum of Rp5,000,000,000.00 (five billion ru-

in Article 17 paragraph (1) letter b; and/or piah) and a maximum of Rp15,000,000,000.00

b. brings heavy duty equipment and/or other (fifteen billion rupiah).

equipment commonly used or believed to

be used to conduct mining activities and/or Article 91

transport mining products in forest land with- (1) Anybody who knowingly :

out a permit from the Minister as referred to a. sells, controls, possesses and/or keeps min-

in Article 17 paragraph (1) letter a ing products originating from mining activities

shall be sentenced to a minimum of 8 in forest land without a permit as referred to

(eight) years and a maximum of 20 (twen- in Article 17 paragraph (1) letter d; and/or

ty) years in jail and be fined a minimum of b. buys, markets and/or processes mining prod-

Rp20,000,000,000.00 (twenty billion rupiah) ucts originating from mining activities in for-

and a maximum of Rp50,000,000,000.00 est land without a permit as referred to in Ar-

(fifty billion rupiah). ticle 17 paragraph (1) letter e 1 26 Business News 8590-8591/8-20 2014 si

shall be sentenced to a minimum of 3 (three) without a permit from the Minister as referred

years and a maximum of 10 (ten) years in jail and to in Article 17 paragraph (2) letter a

be fined a minimum of Rp1,500,000,000.00 shall be sentenced to a minimum of 3 (three)

(one billion, five hundred million rupiah) and years and a maximum of 10 (ten) years in jail and

a maximum of Rp5,000,000,000.00 (five bil- be fined a minimum of Rp1,500,000,000.00

lion rupiah). (one billion, five hundred million rupiah) and

(2) Any corporation which : a maximum of Rp5,000,000,000.00 (five bil-

a. sells, controls, possesses and/or keeps min- lion rupiah).

ing products originating from mining activities (2) Any corporation which :

in forest land without a permit as referred to a. conducts plantation activities without a per-

in Article 17 paragraph (1) letter d; and/or mit from the Minister in forest land as referred

b. buys, markets and/or processes mining prod- to in Article 17 paragraph (2) letter b; and/or

ucts originating from mining activities in for- b. brings heavy duty equipment and/or other

est land without a permit as referred to in Ar- equipment commonly used or believed to be

ticle 17 paragraph (1) letter e used to conduct plantation activities and/or ,

shall be sentenced to a minimum of 5 transport plantation products in forest land

(five) years and a maximum of 15 (fifteen) without a permit from the Minister as re-

years in jail and be fined a minimum of ferred to in Article 17 paragraph (2) letter

Rp5,000,000,000.00 (five billion rupiah) and a shall be sentenced to a minimum of 8

a maximum of Rp15,000,000,000.00 (fif- (eight) years and a maximum of 20 (twen-

teen billion rupiah). ty) years in jail and be fined a minimum of

Rp20,000,000,000.00 (twenty billion rupiah)

Article 92 and a maximum of Rp50,000,000,000.00

(1) Anybody who knowingly : (fifty billion rupiah).

a. conducts plantation activities without a per-

mit from the Minister in forest land as referred Article 93

to in Article 17 paragraph (2) letter b; and/or (1) Anybody who knowingly :

b. brings heavy duty equipment and/or other a. transports and/or receives the custody of

equipment commonly used or believed to be plantation products from plantation activities

used to conduct plantation activities and/or in forest land without a permit as referred to

transport plantation products in forest land 1 in Article 17 paragraph (2) letter c;

Business News 8590-8591 /8-20-2014 27 b. sells, controls, possesses and/or keeps plan- of Rp1,000,000,000.00 (one billion rupiah).

tation products from plantation activities in (3) Any corporation:

forest land without a permit as referred to in a. transports and/or receives the custody of

Article 17 paragraph (2) letter d; and/or plantation products from plantation activities

c. buys, markets and/or processes plantation in forest land without a permit as referred to

products from plantation activities in forest in Article 17 paragraph (2) letter c;

land without a permit as referred to in Article b. sells, controls, possesses and/or keeps plan-

17 paragraph (2) letter e tation products from plantation activities in

shall be sentenced to a minimum of 3 (three) forest land without a permit as referred to in

years and a maximum of 10 (ten) years in jail and , Article 17 paragraph (2) letter d; and/or

be fined a minimum of Rp1,500,000,000.00 c. buys, markets and/or processes plantation

(one billion, five hundred million rupiah) and products from plantation activities in forest

a maximum of Rp5,000,000,000.00 (five bil- land without a permit as referred to in Article

lion rupiah). 17 paragraph (2) letter e

(2) Anybody who because of negligence: shall be sentenced to a minimum of 5

a. transports and/or receives the custody of (five) years and a maximum of 15 (fifteen)

plantation products from plantation activities years in jail and be fined a minimum of 1 in forest land without a permit as referred to 1 Rp5,000,000,000.00 (five billion rupiah) and

in Article 17 paragraph (2) letter c; a maximum of Rp15,000,000,000.00 (fif-

b. sells, controls, possesses and/or keeps plan- teen billion rupiah).

tation products from plantation activities in

forest land without a permit as referred to in Article 94

Article 17 paragraph (2) letter d; and/or (1) Anybody who knowingly :

c. buys, markets and/or processes plantation a. orders, organizes, or encourages illegal log-

products from plantation activities in forest ging and/or illegal use of forest land as re-

land without a permit as referred to in Article ferred to in Article 19 letter a;

17 paragraph (2) letter e b. conducts a conspiracy to commit illegal log-

shall be sentenced to a minimum of 1 (one) year ging and/or illegal use of forest land as re-

and a maximum of 3 (three) years in jail and ferred to in Article 19 letter c;

be fined a minimum of Rp100,000,000.00 c. funds illegal logging and/or illegal use of

(one hundred million rupiah) and a maximum forest land, either directly or indirectly, as

28 Business News 8590-8591/8-20-2014 referred to in Article 19 letter d; and/or be fined a minimum of Rp20,000,000,000.00

d. alters the status of wood from illegal logging (twenty billion rupiah) and a maximum of

and/or illegal use of forest land as if it was Rp1,000,000,000,000.00 (one trillion rupi-

legal wood or legal use of forest land to be ah).

sold to third parties, either in the domestic or

foreign market as referred to in Article 19 let- Article 95

ter f (1) Anybody who knowingly :

shall be sentenced to a minimum of 8 a. uses wood from illegal logging by altering its

(eight) years and a maximum of 15 (fif- shape, size including the use of its waste as

teen) years in jail and be fined a minimum referred to in Article 19 letter g;

of Rp10,000,000,000.00 (ten billion rupiah) b. places, transfers, pays, spends, grants, do-

and a maximum of Rp100,000,000,000.00 nates, deposits, brings abroad and/or ex-

(one hundred billion rupiah). changes money or other securities and other

(2) Any corporation which : wealth found or believed to be the result of

a. orders, organizes, or encourages illegal log- illegal logging and/or illegal use of forest land

ging and/or illegal use of forest land as re- as referred to in Article 19 letter h; and/or

ferred to in Article 19 letter a; c. conceals or disguises the source of wealth

b. conducts a conspiracy to commit illegal log- found or believed to have originated from il-

ging and/or illegal use of forest land as re- legal logging or illegal use of forest land as if

ferred to in Article 19 letter c; it was legal wealth as referred to in Article 19

c. funds illegal logging and/or illegal use of for- letter i

est land, either directly or indirectly, as re- shall be sentenced to a minimum of 8

ferred to in Article 19 letter d; and/or (eight) years and a maximum of 15 (fif-

d. alters the status of wood from illegal logging teen) years in jail and be fined a minimum

and/or illegal use of forest land as if it was of Rp10,000,000,000.00 (ten billion rupiah) 1 legal wood or legal use of forest land to be 1 and a maximum of Rp100,000,000,000.00

sold to third parties, either in the domestic or (one hundred billion rupiah).

foreign market as referred to in Article 19 let- (2) Anybody who because of negligence :

ter f a. uses wood from illegal logging by altering its

shall be sentenced to a minimum of 10 (ten) shape, size including the use of its waste as

years in jail and a maximum of life sentence and referred to in Article 19 letter g;

Business News 8590-8591/8-20-2014 29 b. places, transfers, pays, spends, grants, do- shall be sentenced to a minimum of 10 (ten)

nates, deposits, brings abroad and/or ex- years in jail and a maximum of life sentence and

changes money or other securities and other be fined a minimum of Rp20,000,000,000.00

wealth found or believed to be the result of (twenty billion rupiah) and a maximum of

illegal logging and/or illegal use of forest land Rp1,000,000,000,000.00 (one trillion rupi-

as referred to in Article 19 letter h; and/or ah).

c. conceals or disguises the source of wealth

found or believed to have originated from il- Article 96

legal logging or illegal use of forest land as if (1) Anybody who knowingly :

it was legal wealth as referred to in Article 19 a. falsifies a permit to use wood forest products

letter i and/or forest land as referred to in Article 24

shall be sentenced to a minimum of 2 (two) letter a;

years and a maximum of 5 (five) years in jail b. uses a fake permit to use wood forest prod-

and be fined a minimum of Rp500,000,000.00 ucts and/or forest land as referred to in Article

(five hundred million rupiah) and a maximum 24 letter b; and/or

of Rp5,000,000,000.00 (five billion rupiah). c. transfers or sells a permit issued by the au-

(3) Any corporation which : thorized official , except with approval of the

a. uses wood from illegal logging by altering its Minister as referred to in Article 24 letter c

shape, size including the use of its waste as shall be sentenced to a minimum of 1 (one)

referred to in Article 19 letter g; year and a maximum of 5 (five) years in jail and

b. places, transfers, pays, spends, grants, do- be fined a minimum of Rp500,000,000.00

nates, deposits, brings abroad and/or ex- (five hundred million rupiah) and a maximum

changes money or other securities and other of Rp2,500,000,000.00 (two billion, five

wealth found or believed to be the result of hundred million rupiah).

illegal logging and/or illegal use of forest land (2) Any corporation:

as referred to in Article 19 letter h; and/or a. falsifies a permit to use wood forest products

c. conceals or disguises the source of wealth and/or forest land as referred to in Article 24 . . . . touna or oenevea to nave originated trom letter a;

legal logging or illegal use of forest land as if b. uses a fake permit to use wood forest prod-

it was legal wealth as referred to in Article 19 ucts and/or forest land as referred to in Article

letter i 24 letter b; and/or 30 Business News 8590-8591/8-20-2014

c. transfers or sells a permit issued by the au- est land function, or the border of forest land

thorized official , except with approval of the touching state borders leading to a change in

Minister as referred to in Article 24 letter c , the shape and/or area of forest land as re-

shall be sentenced to a minimum of 5 , ferred to in Article 26

(five) years and a maximum of 15 (fifteen) shall be sentenced to a minimum of 8 (eight)

years in jail and be fined a minimum of months and a maximum of 2 (two) years in jail

Rp5,000,000,000.00 (five billion rupiah) and and be fined a minimum of Rp10,000,000.00

a maximum of Rp15,000,000,000.00 (fif- (ten million rupiah) and a maximum of

teenbillion rupiah). Rp500,000,000.00 (five hundred million ru-

piah).

Article 97 (3) Any corporation which :

(1) Anybody who knowingly : a. destroys forest protection facility and infra-

a. destroys forest protection facility and infra- structure as referred to in Article 25; and/or

structure as referred to in Article 25; and/or b. destroys, removes or eliminates the poles of

b. destroys, removes or eliminates the poles of outer borders of forest land, the border of for-

outer borders of forest land, the border of for- est land function, or the border of forest land

est land function, or the border of forest land touching state borders leading to a change in

touching state borders leading to a change in the shape and/or area of forest land as re-

the shape and/or area of forest land as re- ferred to in Article 26

ferred to in Article 26 shall be sentenced to a minimum of 4

shall be sentenced to a minimum of 1 (one) year (four) years and a maximum of 15 (fifteen)

and a maximum of 3 (three) years in jail and years in jail and be fined a minimum of

be fined a minimum of Rp200,000,000.00 Rp4,000,000,000.00 (four billion rupiah) and

(two hundred million rupiah) and a maximum a maximum of Rp15,000,000,000.00 (fif-

of Rp1,500,000,000.00 (one billion, five teen billion rupiah).

hundred million rupiah).

(2) Anybody who because of negligence : Article 98

a. destroys forest protection facility and infra- (1) Anybody who knowingly takes part or assists in

structure as referred to in Article 25; and/or illegal logging and/or illegal use of forest land as

b. destroys, removes or eliminates the poles of referred to in Article 19 letter b shall be sen-

outer borders of forest land, the border of for- tenced to a minimum of 1 (one) year and a maxi- Business News 8590-8591/8-20-2014 31 mum of 3 (three) years in jail and be fined a mini- (2) Anybody who because of negligence uses funds

mum of Rp500,000,000.00 (five hundred million believed to have originated from illegal logging

rupiah) and a maximum of Rp1,500,000,000.00 and/or illegal use of forest land as referred to

(one billion five hundred million rupiah). in Article 19 letter e shall be sentenced to a

(2) Anybody who because of negligence takes part minimum of 1 (one) year and a maximum of 3

or assists in illegal logging and/or illegal use of (three) years in jail and be fined a minimum of

forest land as referred to in Article 19 letter b Rp200,000,000.00 (two hundred million rupiah)

shall be sentenced to a minimum of 8 (eight) and a maximum of Rp1,500,000,000,000.00

months and a maximum of 2 (two) years in jail (one billion five hundred million rupiah).

and be fined a minimum of Rp200,000,000.00 (3) Any corporation which uses funds believed to

(two hundred million rupiah) and a maximum of have originated from illegal logging and/or illegal

Rp1,000,000,000.00 (one billion rupiah). use of forest land as referred to in Article 19 let-

(3) Any corporation which takes part or assists in il- ter e shall be sentenced to a minimum of 10 (ten)

legal logging and/or illegal use of forest land as re- years in jail and a maximum of life imprisonment

ferred to in Article 19 letter b shall be sentenced and be fined a minimum of Rp20,000,000,000.00

to a minimum of 5 (five) years and a maximum of (twenty billion rupiah) and a maximum of

15 (fifteen) years in jail and be fined a minimum Rp1,000,000,000,000.00 (one trillion rupiah).

of Rp5,000,000,000.00 (five billion rupiah) and

a maximum of Rp15,000,000,000.00 (fifteen Article 100

billion rupiah). (1) Anybody who knowingly prevents, obstructs and/ '

or foils directly or indirectly an effort to eradicate

Article 99 illegal logging and illegal use of forest land as

(1) Anybody who knowingly uses funds believed referred to in Article 20 shall be sentenced to

to have originated from illegal logging and/or il- a minimum of 1 (one) year and a maximum of

legal use of forest land as referred to in Ar- 10 (ten) years in jail and be fined a minimum of

ticle 19 letter e shall be sentenced to a mini- Rp500,000,000.00 (five hundred million rupiah)

mum of 8 (eight) years and a maximum of 15 and a maximum of Rp5,000,000,000.00 (five

(fifteen) years in jail and be fined a minimum of billion rupiah).

Rp1,000,000,000.00 (one billion rupiah) and a (2) Any corporation which prevents, obstructs and/

maximum of Rp100,000,000,000.00 (one hun- or foils directly or indirectly an effort to eradicate

dred billion rupiah1. illegal logging and illegal use of forest land as i L 32 Business News 8590-8591/8-20-2014 referred to in Article 20 shall be sentenced to a piah) and a maximum of Rp15,000,000,000.00

minimum of 5 (five) years and a maximum of 15 (fifteen billion rupiah).

(fifteen) years in jail and be fined a minimum of

Rp5,000,000,000.00 (five billion rupiah) and a Article 102

maximum of Rp15,000,000,000.00 (fifteen bil- (1) Anybody who knowingly obstructs and/or foils

lion rupiah). preliminary investigation, investigation, indict-

ment and/or examination in the trial of criminal

Article 101 offenses related to illegal logging and illegal use

(1) Anybody who knowingly uses wood from ille- of forest land as referred to in Article 22 shall be

gal logging and/or illegal use of forest land from sentenced to a minimum of 1 (one) year and a max-

conservation forest as referred to in Article 21 imum of 10 (ten) years in jail and be fined a mini-

shall be sentenced to a minimum of 1 (one) mum of Rp500,000,000.00 (five hundred million

year and a maximum of 3 (three) years in jail rupiah) and a maximum of Rp5,000,000,000.00

and be fined a minimum of Rp200,000,000.00 (five billion rupiah).

(two hundred million rupiah) and a maximum of (2) Any corporation which obstructs and/or foils

Rp1,500,000,000.00 (one billion fife hundred ru- preliminary investigation, investigation, indict-

piah). ment and/or examination in the trial of criminal

(2) If the criminal offense as referred to in paragraph offenses related to illegal logging and illegal use

(1) is committed by an individual living in and/or of forest land as referred to in Article 22 shall be

around forest land, the culprit shall be sentenced sentenced to a minimum of 5 (five) years and a

to a minimum of 3 (three) months and a maximum maximum of 15 (fifteen) years in jail and be fined

of 1 (one) year in jail and/or be fined a minimum a minimum of Rp5,000,000,000.00 (five billion

of Rp500,000.00 (five hundred thousand rupiah) rupiah) and a maximum of Rp15,000,000,000.00

and a maximum of Rp500,000,000.00 (five hun- (fifteen billion rupiah).

dred million rupiah).

(3) Any corporation which uses wood from illegal Article 103

logging and/or illegal use of forest land from con- (1) Anybody who knowingly intimidates and/or

servation forest as referred to in Article 21 shall threatens the safety of an officer in charge of

be sentenced to a minimum of 5 (five) years and a preventing and eradicating illegal logging and il-

maximum of 15 (fifteen) years in jail and be fined a legal use of forest land as referred to in Article

minimum of Rp5,000,000,000.00 (five billion ru- 23 shall be sentenced to a minimum of 1 (one) Business News 8590-8591/8-20-2014 33

year and a maximum of 10 (ten) years in jail regulation as referred to in Article 28Ietter b;

and be fined a minimum of Rp500,000,000.00 c harbors a culprit of illegal logging and/or illegal

(five hundred million rupiah) and a maximum of use of forest land as referred to in Article 28 let-

Rp5,000,000,000.00 (five billion rupiah). ter c;

(2) Any corporation intimidates and/or threatens d takes part or assists in illegal logging and/or illegal

the safety of an officer in charge of preventing use of forest land as referred to in Article 28 let-

and eradicating illegal logging and illegal use of ter d;

forest land as referred to in Article 23 shall be e conducts a conspiracy in illegal logging and/or il-

sentenced to a minimum of 5 (five) years and a legal use of forest land as referred to in Article 28

maximum of 15 (fifteen) years in jail and be fined letter e;

a minimum of Rp5,000,000,000.00 (five billion f. issues a letter of the legality of forest products

rupiah) and a maximum of Rp15,000,000,000.00 without right as referred to in Article 28 letter f;

(fifteen billion rupiah). and/or

knowingly lets illegal logging and/or illegal use

Article 104 of forest land while carrying out task as referred

Any official who knowingly lets illegal logging to in Article 28 letter g shall be sentenced to

as referred to in Article 12 up to Article 17 and Ar- a minimum of 1 (one) year and a maximum of

ticle 19, but does not take an action as referred to in 10 (ten) years in jail and be fined a minimum of

Article 27 shall be sentenced to a minimum of 6 (six) Rp1,000,000,000.00 (one billion rupiah) and a

years and a maximum of 15 (fifteen) years in jail and maximum of Rp10,000,000,000.00 (ten billion

be fined a minimum of Rp1,000,000,000.00 (one bil- rupiah).

lion rupiah) and a maximum of Rp7,500,000,000.00

(seven billion five hundred million rupiah). Article 106

Any official who neglects his/her tasks as re- Article 105 ferred to in Article 28 letter h shall be sentenced Any official who : to a minimum of 6 (six) months and a maximum

a. issues a permit to use wood forest product and/ of 5 (five) years in jail and be fined a minimum of

or forest land in forest land in breach of his/her Rp200,000,000.00 (two hundred million rupiah) and

authority as referred to in Article 28 letter a; a maximum of Rp1,000,000,000.00 (one billion ru-

b. issues a permit to use wood forest product and/or piah).

forest land in forest land in breach of the law and

34 1 Business News 8590-8591/8-20-2014 Article 107 (4) Judge can order the executive board of corpora-

If illegal logging and/or illegal use of forest tion to come to a court session in person and can land as referred to in Article 12 up to Article 17 and also order the executive board to be brought to

Article 20 up to Article 26 involves an official, the the court session. sentence shall be increased by 1/3 (one-third) of the (5) Principle penalty that can be given to corporation main criminal threat. is fines as referred to in Article 82 up to Article

103.

Article 108 (6) In addition to the penalty as referred to in Article

In addition to the criminal sanctions as re- 82 up to Article 103, the corporation can be sub- ferred to in Article 82, Article 84, Article 94, Article ject to extra penalty in the form of full or partial

96, Article 97 letter a, Article 97 letter b, Article 104, closure of the corporation.

Article 105, or Article 106, compensation shall be im- posed, and if it is not met the defendant shall be sen- CHAPTER XI tenced to jail without exceeding the maximum threat TRANSITIONAL PROVISIONS of main crime according to this law and the period of Article 110 sentence has been decided in a court session. When this Law begins to take effect:

a. the cases of forest destruction criminal offenses

Article 109 that have undergone investigation, indictment,

(1) If logging, harvest, collection, control, transport and court examination based on Law No. 41/1999

and circulation of wood from illegal felling is done on Forestry (Statute Book of 1999 No. 167, Sup-

by or under the name of corporation, indictment plement to Statute Book No. 3888) as already

and/or sentence is done to corporation and/or its amended by Law No. 19/2004 on the Endorse-

management board. ment of Government Regulation in lieu of Law No.

(2) Logging, harvest, collection, control, transport 1/2004 on Amendment to Law No. 41/1999 on

and circulation of wood from illegal felling is done Forestry into Law (Statute Book of 2004 No. 86,

by corporation if the criminal offense is commit- Supplement to Statute Book No. 4412) shall be

ted by individual based on either work relations continued until they receive a court verdict with

or other relations, acting within the corporation, fixed legal force; and

either individually or jointly. b. the cases of forest destruction in forest land

(3) If criminal charge is leveled to a corporation, the cor- designated by the Government before the

poration shall be represented by the executive board. Constitutional Court's Decision No. 45/PUU-

Business News 8590-859118-20-2014 35

IX/2011 dated February 12, 2012 on the Test No. 41/1999 on Forestry into Law (Statute Book

of Law No. 41/1999 on Forestry, shall be sub- of 2004 No. 86, Supplement to Statute Book No.

ject to provisions in this Law. 4412) shall be revoked and declared null and void.

CHAPTER XII Article 113

CONCLUSION When this Law begins to take effect, all laws

Article 111 and regulations serving as the implementation of Law

(1) The institution in charge of preventing and eradi- No.41/1999 on Forestry (Statute Book of 1999 No.

cating forest destruction as referred to in Article 167, Supplement to Statute Book No. 3888) dealing

53 shall be formed no later than 2 (two) years with forest destruction criminal offenses shall remain

after this Law is promulgated. valid provided they do not contradict this Law.

(2) Since the institution as referred to in paragraph

(1) is formed, the handling of all organized forest Article 114

destruction criminal offenses as provided for in This Law shall begin to take effect on the

this Law becomes the authority of the institution date of promulgation.

in charge of preventing and eradicating forest de- For public cognizance, this Law shall be pro-

struction. mulgated by placing it in the Statute Book of the

Republic of Indonesia.

Article 112 . . . . When this Law begins to take effect: Endorsed in Jakarta a. provisions in Article 50 paragraphs (1) and (3) let- On August 6, 2013 ters a, f, g, h, j, and k; and THE PRESIDENT OF THE REPUBLIC OF INDONESIA, b. provisions in Article 78 paragraph (1) on crimi- sgd. nal provisions to Article 50 paragraphs (1) and (2) DR. H. SUSILO BAMBANG YUDHOYONO

on criminal provisions to Article 50 paragraph (3)

letters a and b, paragraphs (6), (7), (9), and (10) Promulgated in Jakarta

of Law No.41/1999 on Forestry (Statute Book of On August 6, 2013

1999 No. 167, Supplement to Statute Book No. THE LAW AND HUMAN RIGHTS MINISTER OF

3888) as already amended by Law No. 19/2004 THE REPUBLIC OF INDONESIA,

on the Endorsement of Government Regulation in sgd.

lieu of Law No. 112004 on Amendment to Law AMIR SYAMSUDIN 36 Business News 8590-8591/8-20-2014 STATUTE BOOK OF THE REPUBLIC OF INDONESIA and natural wealth contained in it must be controlled

OF 201 3 NO. 130 by the state and used for the greatest possible benefit

of the people's welfare. As such, forest as one of the

ELUCIDATION natural wealth resources of the Indonesian nation is

OF controlled by the state.

LAW NO. 18/2013 The control of forest resources by the state

ON gives authority to the government, (i) to regulate and

THE PREVENTION AND ERADICATION OF manage anything related to forest, forest land and

FOREST DESTRUCTION forest products; (ii) to designate forest land and/or

alter the status of forest land; (iii) to control and de-

I. GENERAL termine legal relations between human beings and

The Indonesian forest as the gift given by God forests or forest land and forest products; and (iv) to

Almighty to the Indonesian nation is the main element control legal act related to forest. According to its of the buffer system of human life and the basic as- authority, the government can issue permits to other set of national development which has real benefits parties qualified to carry out activities in the forestry from the standpoint of ecological, socio-cultural and sector. But when it comes to certain crucial things economic benefits so that the life and livelihood of having a far-reaching impact and strategic value, the the Indonesian nation can grow in a balanced and dy- government must consider the people's aspirations namic way. through the House of Representatives of the Repub-

The Indonesian forest is one of the world's lic of Indonesia. largest tropical forests that the continuity of nations Sustainable forest development requires seri- in the world relies on it, particularly in reducing the ous efforts as there are still various criminal offenses impact of global climate change. Therefore, its utiliza- in the forestry sector, such as illegal logging, illegal tion and use must be done in a well-planned, ratio- mining, and illegal plantation. The crimes have inflict- nal, optimum and responsible way according to the ed great losses on the state, resulted in considerable supporting capacity by considering the sustainable damage to social and cultural life and the environment function and environmental balance to support the and led to global warming which has become nation- management of forest and the development of for- al, regional and international issues. In recent years, estry sector in a sustainable way for the benefit of the forest destruction has spread and become complex. people's welfare. This is in line with Article 33 para- The destruction has happened not only to production graph (3) of the 1945 Constitution that land, water forest but also to protected forest or conservation Business News 8590-8591/8-20-2014 37

forest. Forest destruction has evolved into a criminal cate forest destruction;

offense which has an extraordinary impact, is well- c. increasing public participation in conserving for- organized and involves many parties, national and est particularly as a manifestation of social con- international. The destruction has reached an alarm- trol in the eradication of forest destruction;

ing level that threatens the continuity of the nation d. developing international cooperation in eradicat-

and state. Therefore, the forest destruction must be ing forest destruction under a bilateral, regional,

handled in an extraordinary way. Efforts to handle or multilateral scheme; and

forest destruction have been made for a quite long e. ensuring the sustainability of forest by conserving

time, but they have not run effectively and given it without destroying the environment and sur- optimum results. This is because the existing laws rounding ecosystem to create prosperous com- and regulations have not firmly controlled forest de- munity.

struction criminal offenses committed in an organized The scope of this law covers (i) prevention of

way. Therefore, a legal umbrella in the form of law is forest destruction; (ii) eradication of forest destruc-

needed to ensure that the organized forest destruc- tion; (iii) institution; (iv) public participation; (v) in-

tion can be dealt with effectively and efficiently to ternational cooperation; (vi) protection of witnesses,

give deterrent effects to culprits. Based on the afore- reporters and informants; (vii) financing; and (viii)

mentioned views, the efforts to eradicate forest de- sanctions. The scope of forest destruction referred to

struction under this law are made by giving priority to in this law covers process, method, or act of destroy-

the principles of justice and legal certainty, continu- ing forest through illegal logging and/or illegal use of

ity, state responsibility, public participation, vicarious forest land. Illegal logging is defined as all activities of

liability, priority, integration and coordination. In ad- using wood forest products in an illegal and organized

dition to repressive aspect, this law also considers way, while illegal use of forest land covers organized

restorative aspect, with the aim of : activities carried out in forest land for plantation and

a. providing a firmer and more complete legal um- mining without a permit from the Minister. This law

brella to law enforcement personnel to eradicate focuses on eradicating organized forest destruction,

forest destruction so that it will be able to give a namely activity carried out by a structured group of

deterrent effect to culprits; 2 (two) people or more, acting together in a certain

b. increasing capability and coordination among time with the aim of destroying forest, but it does

law enforcement personnel and relevant parties not include a group of local residents engaged in tra-

through an institution in charge of preventing and ditional farming. Exception to traditional farming is

eradicating forest destruction in an effort to eradi- , given to the community who have lived hereditary 38 Business News 8590-85911 8-20 2014 in the forest and have been engaged in farming by complying with rotation tradition set by their group. II. ARTICLE BY ARTICLE

The efforts to prevent forest destruction are made by issuing government and regional government policies Article 1 and increasing public participation. To eradicate for- Sufficiently clear. est destruction, this law defines the category of orga- nized forest destruction activity carried out directly or Article 2 indirectly or other relevant activity. To eradicate for- Letter a est destruction more effectively, this law is equipped Referred to as "justice and legal certainty" is with penal code covering investigation, indictment the prevention and eradication of forest destruction and court examination, done based on the law and law enforcement apples

This law mandates the formation of an insti- to all layers of the community. tution in charge of preventing and eradicating orga- nized forest destruction which is seconded and re- Letter b sponsible to the President, consisting of elements of Referred to as "continuity" is that everybody the forestry ministry, police, and attorney general's shoulders obligation and responsibility to the next office as well as other relevant parties such as rel- generation and fellow generations to conserve forest. evant ministries, experts, and public representatives.

In addition to upholding the law, this institution also Letter c has coordination and supervision functions. Since the Referred to as "state responsibility" is that institution in charge of preventing and eradicating for- the prevention and eradication of forest destruction est destruction was formed, the handling of all orga- is the responsibility of the state to ensure that forest nized forest destruction crimes as provided for in this will always be conserved.

law has become the authority of the institution in

charge of preventing and eradicating organized forest Letter d.

destruction. Meanwhile, the handling of organized Referred to as "public participation" is that

forest destruction crimes which are being legally pro- public participation in the prevention and eradication

cessed is continued based on the previous law until of forest destruction plays a very significant role in

fixed legal force is obtained. conserving forest.

Business News 8590-8591/8-20-2014 i 39

Letter e Paragraph (2)

Referred to as "vicarious liability" is that The designation of alternative wood source is

evaluation of performance in the prevention and erad- aimed at fulfilling domestic and international demand

ication of forest destruction is done by evaluating the for wood products which usually grows when produc-

I implementation through planning made in a simple, tion capacity of wood processing industry is reduced.

measurable, achievable, and rational way and the ac- The development of productive timber estate is done

tivities can be scheduled. by taking advantage of arid and barren land and idle

land such as the former site of forest management

Letter f right.

Referred to as "priority" is that forest destruc-

tion is the case that must be handled immediately so Paragraphs (3) and (4)

that preliminary investigation, investigation or indict- Sufficiently clear.

ment must be prioritized.

Article 7

Letter g Referred to as "the public" is the local com-

Referred to as "integration and coordination" munity, customary community and general public.

is that the prevention and eradication of forest de- The local community is a group of people who live

struction is done by integrating various interests of in and/or around forest as unit of social community

sectors and stakeholders and that coordination among based on livelihood which relies on forest, history,

sectors and interests is badly needed. The takehold- binding residence and public order for common life

ers are among others the government, regional gov- in an institution. The customary community is tradi-

ernments and the public. tional community which is still bound in the form of

association, has institution in the form of customary

Article 3 up to Article 5 legal rules and instruments that are still abode by, and

Sufficiently clear, still collects forest products in the surrounding forest

and whose existence is endorsed by bylaw. The gen-

Article 6 eral public is the community outside local community

Paragraph (1) and customary community. The legal entities referred

Sufficiently clear, to in this law are state-owned company, regional

government-owned company, private company and

cooperative. 4C Business News 8590-8591/8-20-2014 Article 8 up to Article 10 to issue a forest use permit.

Sufficiently clear.

Letter c Article 11 Sufficiently clear.

Paragraphs (1) and (2) Sufficiently clear. Letter d

Referred to as "load" is loading something

Paragraph (3) into transport means.

Referred to as "traditional farming" is farm- ing conducted by the community who have lived he- Letter e reditary in the forest area and the farming has been Sufficiently clear. done by complying with rotation tradition set by their ; group Letter f

Referred to as "instruments commonly used

Paragraphs (4) and (5) to fell, cut or divide trees", excluded from this provi-

Sufficiently clear. sion are tools such as machete, sword, or the like car-

ried by local people according to the cultural tradition

Article 12 and characteristics of their region."

Letter a

Referred to as "forest utilization permit" is a Letter g up to letter m

permit to use forest in production forest in the form Sufficiently clear.

of land use permit, environmental service use permit,

wood product use permit, non-wood product use per- Article 13

mit, wood product collection permit or non-wood Paragraph (1)

product collection permit. Sufficiently clear.

Letter b Paragraph (2)

Referred to as "felling trees in forest land Referred to as "activity which has inevitable

without a permit" is the felling of trees which is done stretegic goal" is activity prioritized must be done at

based on a forest use permit which is obtained ille- that time because there is no other choice and the ac-

gaily, namely from the official who has no authority tivity has an important impact on state sovereignty, Business News 8590-8591/8-20-2014 I 41

state defense and security, economic, social, cultural responsibility for the validity of the forest products

and/or environmental growth. For instance, the devel- transported.

opment of pier or bridge in the river flowing through

forest land. Article 17

Sufficiently clear.

Article 14

Sufficiently clear. Article 18

Paragraph (1)

Article 15 Referred to as "administrative sanction" is a

Referred to as "wood forest product trans- sanction imposed on non-permit violation and permit

port document" includes letter of the legality of for- holder. Administrative sanction imposed on non-per-

est product, list of logs, list of processed wood, log mit violation comes in the form of compensation ac-

transport invoice, and processed wood transport in- cording to the level of damage caused to the state

voice. in the form of rehabilitationcost, forest restoration or

other necessary step.

Article 16 Administrative sanction imposed on permit

Transport mode is considered to have trans- holder comes in the form of fines, suspended activ-

ported forest products if part or all of forest products ity, or revocation.

has been loaded to the transport mode to be sent or

moved to other place. Letter a

Referred to as "conducting transportation" Referred to as "government coercion" is a le-

is the process starting from the process of carry- gal step taken by the government to force companies/

ing, loading, and transporting forest products aboard legal entities to restore forest as a result of their ac-

transport mode and transport mode carrying forest tivities to destroy forest because they do not meet

product moving to destination place and unloading, or the law and regulation.

releasing forest products from transport mode.

In addition to forest products not accompa- Letter b

nied by a letter of legality of forest product, transport Referred to as "penalty payment" is a certain

mode, either land or water transport mode, used to sum of money paid by legal entity or corporation violat-

transport the said forest products is seized for the ing the law and regulation as a substitute to the execu-

state, so that the owners of transport mode also take tion of sanction in the form of government coercion. 42 Business News 85908591/8-20-2014 Letter c means, border pole, and forest safeguard means.

Sufficiently clear.

Article 26

Paragraph (2) Referred to as "outer pole of forest land" is

Sufficiently clear. a border pole in the form of border monument and

buoy.

Article 19 up to Article 21 Referred to as "border pole of forest land

Sufficiently clear, function" is border monument or border pole.

Referred to as "border of forest land touching

Article 22 state border" is a border monument or border pole,

Referred to as "obstructing" is any attempt to ' and buoy touching the state border. slow down the process, conceal the case, and deny access to data and information. Article 27

Referred to as "action" includes reporting,

Article 23 taking legal action and stopping an act.

Sufficiently clear.

Article 28

Article 24 Letters a and b

Letters a and b Sufficiently clear.

Sufficiently clear.

Letter c

Letter c Referred to as "harboring" is an act that can

Referred to as "transferring" or "selling a per- obstruct the investigation of culprit found to have

mit" is limited to the transfer of a utilization permit been put in the wanted list, including concealing cul- from permit holder to other party through sale and prit.

purchase, but it does not include acquisition.

Letter d

Article 25 Referred to as "helping" is deliberately help-

Referred to as "facility and infrastructure of ing a crime and/or deliberately giving a chance and

forest protection" include patrol road, guarding post, facility to commit an illegal logging crime.

ban board, static communication means, transport Business News 8590-8591/8-20-2014 43 Letter e up to letter h

Sufficiently clear. Article 38

Sufficiently.

Article 29 up to Article 36

Sufficiently clear. Article 39

Letter a up to letter c

Article 37 Sufficiently clear.

Letter a

Sufficiently clear. Letter d

Referred to as "area which is difficult to reach

Letter b because of natural and geographical factors or trans-

Point 1 portation" is an area which geographically has trans-

Referred to as "electronic information" is in- portation limitation because it can be reached more

formation uttered, sent, received or stored electroni- than 3 x 24 hours.

cally using an optic instrument or the like.

Letter e

Point 2 Sufficiently clear.

Referred to as 'electronic document" is data,

recording, or information that can be watched, read, Article 40

and/or heard, and can be released with or without the Paragraphs (1) and (2)

help of facility, either that put on paper, any physical Sufficiently clear.

item other than paper, or that recorded electronically

in the form of : Paragraph (3)

a) text, sound or picture; Referred to as "found item" is evidence that is

b) map, draft, photograph, or the like; and/or not and/or has not been known by its owner.

c) letters, marks, figures, symbols, or perforation

which has a meaning or can be understood by Paragraph (4)

people who can read and understand. Referred to as "confiscated evidence" is evi-

dence seized from its owner and/or the person con-

Point 3 trolling it.

Sufficiently clear.

44 Business News 8590-8591/8-20-2014 Paragraphs (5) and (6) ily be damaged and requires high cost to keep it so Sufficiently clear. that it will unlikely be kept until the court's verdict

related to the case has fixed legal force. j Article 41

Sufficiently clear. Paragraph (5)

Sufficiently clear.

Article 42

Referred to as "the law and regulation" are Article 45

the law and regulation on personnel discipline and of- Sufficiently clear.

ficial responsibility.

Article 46

Article 43 Paragraph (1)

Sufficiently clear. Sufficiently clear.

Article 44 Paragraph (2)

Paragraph (1) Referred to as 1 (one) cycle is a period of time

Referred to as "wood evidence" is found since the trees are planted until they are not produc-

wood or confiscated wood. tive economically.

Paragraph (2) Paragraph (3)

Referred to as "public interest or social inter- Referred to as the word "can" is that the gov-

est" is interest used among others as assistance in ernment must not necessarily assign state-owned

mitigating natural disaster, public infrastructure, and companies to use plantation but can also conduct re-

houses as well as facility and infrastructure for the forestation according to its function.

poor Referred to as "assignment" is authority given

by the state to state-owned companies which have

Paragraph (3) competency to manage plantations.

Sufficiently clear.

Paragraph (4)

Paragraph (4) Sufficiently clear.

Wood evidence includes item which can eas- Business News 8590-8591/8-20-2014 I 45 Article 47 er, or other parties having business relationship in

Paragraph (1) wood, plantation product or mining product trad-

Referred to as "method of loading capacity ing with the suspect, and/or

survey" is a method of fixing the quantity of goods c. relationship as a party providing services to the

loaded onto a ship or unloaded by calculating net dis- suspect, such as corporate consultant, law con-

placement of ship based on the Archimedes principle. sultant or public accountant.

Referred to as "ship figure scale reading" is

inspecting the quantity (volume and/or weight) of Paragraph (5)

wood forest products on ship (on or inside the hold Having skill and certificates such as scaler,

of a ship), except on or inside the hold of wooden mo- grader, appraiser and accountant.

tor boat.

Article 50 up to Article 53

Paragraph (2) Sufficiently clear.

Sufficiently clear.

Article 54 Article 48 Paragraphs (1) and (2)

Sufficiently clear. Sufficiently clear.

Article 49 Paragraph (3) Paragraph (1) up to Paragraph (3) Letter a up to letter c

Sufficiently clear. Sufficiently clear.

Paragraph (4) Letter d

Referred to as "affiliates" are parties that Referred to as "other relevant elements" in-

have relations/ties with the suspect because of : clude relevant ministries, experts, academics and the

a. kinship/familial relationship by marriage and de- public.

scent up to second degree, either horizontally or

vertically; Paragraph (4)

b. business and/or work relationship or party influ- Sufficiently clear.

encing the company owned by the suspect, such Article 55

as employee, director, commissioner of the com- Sufficiently clear.

pany owned by the suspect, or the company of

which the suspect is shareholder, or cc Immission- Article 56

46 Business News 8590-8591/8-20-2014 Paragraph (1) Article 58 up to Article 60

Letter a up to letter c Sufficiently clear.

Sufficiently clear.

Article 61

Letter d Letter a up to letter e

Referred to as "integrated" is that the forest ■ Sufficiently clear. destruction eradication information system can be accessed altogether by relevant law enforcement in- Letter f stitutions with the database connected from one to Examples of other activities include assisting another. in the arrest of the culprits of forest destruction.

Letter e Article 62 up to Article 64 Sufficiently clear. Sufficiently clear.

Letter f Article 65

Referred to as "among law enforcement insti- Paragraph (1) tutions" are among others the Police of the Republic Sufficiently clear. of Indonesia, the Attorney General's Office, the Cor- ruption Eradication Commission, PPNS, and the For- Paragraph (2) estry Police. Referred to as "good relations based on re-

ciprocal principles" are friendship based on national

Letters g and h interests and principles of equality, mutual benefit,

Sufficiently clear. and mutual attention, either national or international

law.

Paragraph (2)

Sufficiently clear. Article 66 up to Article 70

Sufficiently clear.

Article 57

Referred to as "the House of Representatives Article 71 of the Republic of Indonesia" is the unit at the body Letter a up to letter e in charge of overseeing forestry affairs. Sufficiently clear.

Business News 8590-8591/8-20-2014 I 47 Letter f Paragraph (1)

Referred to as "asset from forest destruc- Sufficiently clear.

tion criminal offense" is wealth obtained directly or

indirectly from forest destruction activities, including Paragraph (2)

wealth converted, altered or combined with wealth Referred to as "living in and/or around forest

produced or obtained directly from forest destruction, land" is that an individual lives in and/or around forest

income, capital or other economic gains obtained land whose livelihood relies on forest land.

from the wealth all the time since the forest destruc-

tion criminal offense is committed. Paragraph (3)

Sufficiently clear.

Article 72 up to Article 75

Sufficiently clear. Article 83 up to Article 108

Sufficiently clear.

Article 76

Referred to as "special protection" covers se- Article 109

curity protection and legal protection. 1 Paragraph (1) and (2)

Sufficiently clear.

Article 77

Sufficiently clear. Paragraph (3)

The criminal responsibility for the executive

Article 78 , board of corporation is limited, provided the execu-

Paragraph (1) ' tive board has functional position in the organizational

Sufficiently clear. , structure of the relevant corporation.

Paragraph (2) Paragraph (4) up to Paragraph (6)

Providing information without good intention Sufficiently clear.

referred to herein includes providing false informa-

tion, fake oath, and conspiracy. Article 110 up to Article 114

Sufficiently clear.

Article 79 up to Article 81

Sufficiently clear. SUPPLEMENT TO STATUTE BOOK OF THE

THE REPUBLIC OF INDONESIA NO. 5432

Article 82 (S)

48 I Business News 8590-8591/8-20-2014