Guidelines on Administrative Sanctions for IUIPHHK Holders - Department of Forestry Regulation

The Department of Forestry has issued Regulation No. P.17/Menhut-II/2009 on the Guidelines on Administrative Sanction for  Holders of Primary Industrial Wood Forestry Product Business Licenses (Izin Usaha Industri Primer Hasil Hutan Kayu/IUIPHHK) as a means to implement Article 139 of Government Regulation No. 6 of 2007 as amended by Government Regulation No. 3 of 2008.

The key terms are set forth in the General Provision of the Regulation in which IUIPHHK is interpreted as a license granted by a relevant authorized official to process round woods into one or more products sourced from one location. Furthermore, administrative violations are defined as acts that are to be administratively sanctioned. This is separate from  the definitions in Article 78 of Law No. 41 of 1999 on Forestry as those provisions relate to criminal sanction.

The Regulation outlines three types of administrative sanctions liable for imposition on the license holder, namely: temporary withdrawal of services provided by the government, temporary withdrawal of activities, and ultimately, suspension of industrial business license. Each of these sanctions has their own procedures, and they are clearly stipulated in the Regulation.

Each of the available sanctions applies to the different types of violations. The first noted-above sanction is designed for violations for failures relating to documentary and notification matters, while the second sanction is for failure to utilize specific certified tools whose functions are to measure and test forest products. However, in terms of the last sanction, the regulation listed eight situations where the license may be suspended, among others:

The imposition of sanctions are based on evaluations of the Provincial Agency or the Regency and/or Municipality Agency and then reported to the Head of the Provincial Agency. These reports are to be in the form of project inspection minutes (see Attachment I of the Regulation) in which the Head of the Provincial Agency will then impose the relevant sanctions. Nevertheless with regards to any suspension the enforcement is to be undertaken by the official that issued the license.

The Regulation replaces the previous regulation in this area, Department of Forestry Decision No. 6887/Kpts-II/2002 jis. No. 10031/Kpts-II/2002 and No. 59/Kpts-II/2003.

The Regulation has been in force since 6 March 2009.