STIPULATION ON THE EXPORT OF LOGS
(Decree of the Minister of Industry and Trade No. 185/MPP/kep/4/1998 dated April 20, 1998)
THE MINISTER OF INDUSTRY AND TRADE
Considering :
a. that in the framework of the national economic reforms and the creation of onderliness in business and in the context of supporting efforts to ensure the
sustainability of natural resources in support of global environmental quality, it
is necessary to lay up down a stipulation on the export of logs;
b. that the timber industry has opened up very broad employment opportunities,
particularly to the community members in the economically weak group, so
that efforts must be made to ensure continuity in timber supplies;
c. that to this end, it is necessary to inssue a decree of the Minister of Industry
and Trade
In view of:
1. The Trade Ordinate of 1934 (Statute Book No. 86/1938) as already amended
and supplemented;
2. Law No. 5/1967 on forestry principles (Statute Book No. 8/1967, Supplememt
to Statute Book No. 2823;
3. Law No. 5/1990 on the conservation of biological natural resources and their
ecosystem;
4. Law No. 7/1994 on the validation of the agreement establising the World
Trade Organization (Statute Book No. 57/1994, Supplement to Statute Book
No. 3564);
5. Law No. 10/1995 on customs affairs (Statute Book No. 75/1995, Supplement
6. Government Regulation No. 1/1982 on the implementation of exports, imports
and foreign exchage traffic (Statute Book No. 1/1982, Supplement to Statute
Book No. 3210) as already emended by Government Regulation No. 24/1985
(Statute Book No. 33/1985, Supplement to Statute Book No. 3291);
7. Government Regulation No. 20/1994 on the ownership of shares in companies
established in the framework of foreign investment (Statute Book No. 28/1994,
Supplement to Statute Book No. 35520;
8. Presidential Decree No. 260/1967 on the confirmation of the duties and
responsibilities of the minister of trade in the foreign trade area;
9. Presidential Decree No. 44/1974 on the amendment to Presidential Decree No.
15/1984 on the organizational principles of the ministries;
10.Presidential Decree No. 2/1996 on the amendment to Presidential Decree No.
15/1984 on the organizational sructure of ministries, as already amended
twenty-five times, the latest by Presidential Decree No. 61/1995;
11. Presidential Decree No. 62/M/1998 on the establishment of Development Cabinet VII;
12.Decree of the Minister of Trade No. 323/Kp/II/84 on the implementation of
compulsory registration of companies, as already amended by Decree of the
Minister of Trade No. 193/KP/VIII/1990;
13.Decree of the Minister of Trade No. 1458/Kp/XII/84 on the trade business
licenses (SIUP);
14.Decree of the Minister of trade No. 225/Kp/X/1995 on the export of goods
outside the general provisions in the export area jo. Decree of the Minister of
Industry and Trade No. 254/MPP/Kep/8/1996;
15.Decree of the Minister of Industry and Trade No. 29/MPP/SK/2/1996 jo No.
92/MPP/Kep/4/1994 on the organization and the working system of the
16.Decree of the Minister of Industry and Trade No. 182/MPP/Kep/4/1998 on the
general provisions in the export area.
DECIDES:
To stipulate:
THE DECREE OF THE MINISTER OF INDUSTRY AND TRADE ON THE STIPULATION ON THE EXPORT OF LOGS
Article 1
Referred to in this decree as:
1. Logs shall be wood in the rough, whether or not stripped of bark or sapwood,
or sapwood, or roughly sguared, both from natural and man-made forests,
included in the tariff headings/H 4403 and 4404, originating in production
natural forest and man-made forests;
2. Production natural forests shall be forest areas producing timber from
naturally-growing trees managed under the silviculture system to ensure their
sustainability;
3. Man-made forests shall be natural forests estabilshed in the framework of
boosting production and quality of production forests managed under the
silviculture system to fulfill the demand for raw materials in domestic
industries based on forestry products;
4. People’s forests shall be forests grown by people on plots of land they legally
own;
5. Estate areas shall be estates producing timber from estate plants which no
longer have an economic value with respect to the commodities produced from
Article 2
(1)The quantity of logs which may be exported every year shall be adjusted to the
quantity which does not pose a threat to the sustainability of forest resources
and the environment;
(2)The quantity as meant in sub-article (1) shall be stipulated by the Minister of
Forestry and Estates.
Article 3
(1) The export of logs can be conducted by any business company fulfilling
general and spesific requirements.
(2) The general requirements as meant in sub-article (1) shall be the attachment to
export documents of the following :
a. a copy of the trade business license (SIUP); b. a copy of the corporate registration (TDP); c. a copy of the taxpayer’s code number (NPWP);
d. a copy of the notary’s act on the establisment of the company.
3. The specific requirements as meant in sub-article (1) shall be:
a. For logs originating in production natural forest. Attach :
1. a copy of forest concession (HPH) ownership certificate from the
Ministry of Forest and Estate;
2. a copy of the annual work plan (RKT) of the current year ;
3. the first sheet of the log transportation letter (SAK-B) (original);
4. a copy of the evidence of the implementation of the provision on the
analysis on environmental impacts (AMDAL);
b. For logs originating in man-made forest, attach:
1. a copy of the timber estate concession (HPHTI) ownership certificate from the Ministry of Forestry and Estates;
3. the first sheet of the log transportation letter (SAK-B) (original);
4. a copy of evidence of the implementation of AMDAL provisions;
c. For logs originating in people’s estates, attach;
1. a certificate of timber origin issued by the local forestry and land
conservation service of a second-level region (original);
2. a copy of land ownership certificate from the local regional office of
the Ministry of the Ministry of Forestry and Estates;
d. For logs originating in estate areas, attach:
1. a copy of the etate business license;
2. a copy of land ownership certificate from the local regional office of
the Ministry of Forestry and Estates.
Article 4
(1) Exporters of logs shall be obligated to report monthly plans for the export of
logs to the Director of Exports of the Ministry of Industry and Trade with
copies to be addressed to the Director of Utilization and Distribution of Forest
products of the Ministry of Forestry and Estates.
(2) Exporters of logs shall be obligated to report the realization of their exports at
the latest 10 (ten) working days after shipment to the Director of Exports of
the Ministry of Industry and Trade, attaching copies of L/C, Export
Declaration (PEB) and B/L, with a copy to be addressed to the Director of
Utilization and Distribution of Forest Products of the Ministry of Forestry and
Estates.
Article 5
Violation of the provisions in this decree shall be subject to sanctions on the basis
Article 6
This decree shall take effect as from the date of stipulation.
For public cognizance, this decree shall be announced by publishing it in the State
Gazette of the Republic of Indonesia.
Stipulated in Jakarta On April 20, 1998
THE MINISTER OF INDUSTRY AND TRADE
Sgd
