Guidelines for Altering the Designation and Function of Forest Areas

In order to accelerate the development of the non-forestry industry sector in forest areas, the government has issued Regulation No. 104 of 2015 on the Procedures for Altering the Designation and Function of Forest Areas (“2015 Regulation”).The 2015 Regulation redefines the procedures whereby ministers, heads of regional government, heads of legal entities, and the general public may change the designation and function of conservation forests, protected forests, and production forests. Prior to the 2015 Regulation, these matters were regulated under Government Regulation No. 10 of 2010 (“2010 Regulation”). [1] The 2015 Regulation is of relevance to parties who are intending to alter the designation and function of forest areas, such as mining companies and oil and gas companies, as well as the general public.Changes in DesignationChanges to the designation of a forest area will result in the forest area in question no longer retaining its status as a forest area. [2] There are two methods by which the designation of a forest area is altered, namely: 1) partial alteration; and 2) alteration of provincial forest areas. [3] Partial AlterationThrough a process of partial alteration, the designation of a forest area in a region can change, either through an exchange of designation that takes place between forest areas, or a complete annulment of the forest-area status. [4] Any exchange of designation between forest areas is only applicable to limited-production forests and/or permanent-production forests and is only allowed for the following purposes: [5]