TRANSFORMATION OF REFORESTATION FUNDS
The Reforestation Guarantee Fund and Forest Rehabilitation for Forest Concession (DJR) are stipulated in Presidential Decree No. 35 of 1980 used for the rehabilitation of logged-over forests in the Forest Concession Rights (HPH) area. The DJR is collected at US $ 4.0 for round wood (KB) and US $ 0.5 for small round wood (KBK/BBS).
The DJR is a performance bond, therefore the DJR will be returned to the HPH holder if the person concerned has been proven to carry out reforestation in the area of the logged-over area.
However, if this is not carried out, the reforestation activities will be taken over by the Government using the DJR, the implementation of which is by a third party or the local Forestry Service including seeding activities, remaining stand inventory, freeing of plants that interfere with planting, and replanting and maintaining them, with the supervision of the Directorate General of Forestry, Ministry of Agriculture.
The use of DJR which is restricted only for reforestation in the HPH area where the DJR is collected makes the DJR stored in the designated Government Bank pile up. Therefore, the Government then took over the DJR.
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The government, through Presidential Decree Number 31 of 1989, changed the DJR to become a DR (Reforestation Fund). The DJR, which was originally a guarantee, has changed into Government revenue. Its use is no longer for reforestation on logged-over areas of HPH, but rather for reforestation of forest areas outside HPH areas, development of Industrial Plantation Forests (HTI) of BUMN-private joints, rehabilitation on (critical) land determined by the Minister of Forestry.
The DJR that was deposited as of March 31, 1989 amounted to Rp614,900,224,120.11. Whereas the DJR returned to the HPH holder (which was proven to have carried out reforestation) until March 31, 1989 amounted to Rp54,359,227,665.08.
The DR was collected not only from HPH holders, but also was collected from holders of Forest Product Collection Rights (HPHH) and holders of Timber Utilization Permits (IPK) of US $ 7.0 for KB and US $ 1.0 for KBK.
The Presidential Decree states that in the Indonesian Selective Cutting and Planting System (TPTI), forest development is an obligation of HPH, meaning that reforestation funding in the HPH area is borne by the HPH holder. The provision applies until now, rehabilitation of logged over forests in HPH areas has not been financed by DR.
Then through Presidential Decree No. 29 of 1990, the DR levy rose to US $ 10.0 for KB and US $ 1.5 for KBK. The DR is collected and deposited by the Upstream Timber Processing Industry (IPKH) which receives the raw wood raw material as a Compulsory Collecting and Compulsory Deposit (WPS).
In its development, through Presidential Decree No. 40 of 1993, DR fees increased again, and the imposition was based on groups of wood species in certain regions (clusters), as follows:
a. Kalimantan and Maluku Region amounted to US $ 16.0 for KB in the Meranti group and US $ 13.0 for KB in the Mixed Forest Group.
b. Sumatra and Sulawesi Region amounted to US $ 14.0 for KB in the Meranti group and US $ 12.0 for KB in the Mixed Forest Group.
c. The Irian Jaya and Nusa Tenggara regions are US $ 13.0 for the Meranti group KB and US $ 10.5 for the Mixed Jungle KB group.
d. Valid for the whole of Indonesia amounting to US $ 20.0 for each ton of Ebony group, US $ 16.0 for Jati Alam, US $ 18.0 for Kayu Indah group and every ton of Sandalwood, and US $ 2.0 for KBK.
For IPKH as WPS that exports processed wood, DR payments are deducted directly through the Foreign Exchange Bank at the time of money order negotiations or at the time of notification of export goods (PEB) for those carrying out exports without a Letter of Credit (L / C).
The DR transformation continues with the issuance of Government Regulation No. 92/1999 derived from Law No. 20/1997. The philosophy of the DR experienced a shift from being a mere levy to compulsory non-tax state revenue (PNBP). The implication is that the DR is included in the APBN as one of the State revenue posts and managed by the Minister of Finance.
In consideration of Government Regulation No. 92 of 1999 it is stated that the designation of the DR is no longer "special" for forest and land rehabilitation (returning to the forest), but also for the implementation of state government and national development.
Furthermore, the DR is no longer a source of funding for HTI development after the issuance of the Minister of Forestry and Plantation Number 922 / Menhutbun-VI / 1999 concerning HTI-Patungan which was reaffirmed through the letter of the Secretary General of the Ministry of Forestry Number 549 / II-Keu / 2000 which contained a temporary suspension distribution of DR for HTI development.
Interest on demand deposits from DR principal deposits at the State Bank, which at that time had reached around Rp. 12 trillion, was channeled not only to direct forest and land rehabilitation activities, but also to support activities as outlined in the List of Activities / Supplement (DIK / S).
Over time, the philosophy of the DR must return to the forest re-emerged with the issuance of Law Number 41 of 1999. The DR regulation in the Act covers two aspects, namely, it is used only for reforestation and rehabilitation activities and supporting activities, and to realize sustainable forest management , supported by supporting institutions including financial institutions that support forest development, research and development institutions, educational and training institutions and extension institutions.
In Government Regulation No. 35/2002 derived from Law No. 41/1999, the DR stored in a Forest Development Account (RPH) can only be channeled through a loan scheme (and is a revolving fund) to legal entities, forest farmer groups and cooperatives. . Furthermore, DR management in the RPH is carried out by the Public Service Agency (BLU).
Forest and land rehabilitation is carried out through reforestation activities in production forests, protection forests and / or conservation forests except natural reserves and national park core zones, reforestation in the form of development of private forest or private forest, reforestation in the form of forestry business development related to forest conservation, reforestation in the form development of watershed conservation farming, maintenance, enrichment of plants in protected forests and production forests, or the application of vegetative and civil technical soil conservation techniques, on critical and unproductive lands.
However, specifically for rehabilitation activities that are not feasible to be financed with a loan scheme, they can use the DR through budget documents (DIPA K / L). The use of DR through the K / L DIPA sourced from the Central Government portion of the DR is used for supporting activities.
Forest rehabilitation support activities are carried out through forest protection, prevention and management of forest fires; regional boundary arrangement; supervision and control, imposition, receipt and use of the Reforestation Fund; seed development; research and development, education and training, counseling and empowerment of local communities in forest rehabilitation activities.
Utilization of the DR after the issuance of Law Number 20 of 1999 is carried out through DAK-DR. It regulates the distribution and distribution of the amount of DR for producing regions (regencies / cities) by 40% and the Central Government by 60%. Specifically, the Central Government portion is managed to support forest and land rehabilitation activities outside the producing areas.
In its implementation, several obstacles faced include those for regions that receive the largest DAK-DR and Revenue Sharing Funds (DBH) having difficulty in finding critical land for rehabilitation activities because they still have large productive forests. While rehabilitation in forest areas that are encumbered by HPH (IUPHHK-HA) cannot be funded from the DR, because it is an obligation of the HPH holder in accordance with the TPTI silvicultural system.
On the other hand, for areas where DR revenues are small but have large areas of forest and critical land, difficulties arise in terms of the adequacy of the amount of funding available for rehabilitation activities.
After the issuance of Government Regulation Number 35 Year 2002 and the issuance of Minister of Forestry Decree Number 128 / Kpts-II / 2003, DR transformation continues. The procedure for collection and deposit of DR is no longer by IPKH as WPS, the procedure for the imposition and collection and payment of DR is returned to the upstream, namely by the holders of HPH, HPHH and IPK as Payers (WB).
In the latest development after the issuance of Government Regulation No. 12 of 2014, the DR levy was based on a sort of round wood divided into a sort of KB, KBS and KBK. For KB sorting, it increased by US $ 0.5 from the previous tariff, and KBK sorting increased by US $ 2.0 from the previous tariff, and certain types of (special) wood increased by US $ 2.0 from the previous DR rate as stipulated in Government Regulation No. 92 of 1999 .
The DR transformation will continue after the issuance of Law Number 9 of 2018 in lieu of Law Number 20 of 1997. Some parties suggest that the imposition of DR which currently uses the US $ rate be changed using the Rupiah rate. To accommodate this, Government Regulation Number 12 of 2014 is currently being reviewed for the revision process.
Thus, hopefully useful.