New Provision on Benchmark Pricing for Forestry Products

The Ministry of Environment and Forestry (“ Ministry ”) has issued Regulation No. P.64/MENLHK/SETJEN/KUM.1/12/2017 on Benchmark Pricing for Forestry Products for the Calculation of Forestry Provisional Fees and Stumpage Compensation (“ Regulation 64/2017 ”).Regulation 64/2017 essentially incorporates new benchmark prices for a number of new forestry commodities, specifically non-timber products produced through sylvopastural system and sylvofishery systems. These new benchmark prices will be used in order to calculate any Provisional Forestry Fees (Provisi Sumber Daya Hutan- “ PSDH ”) and Stumpage Compensation (Ganti Rugi Tegakan- “ GRT ”) which are payable by forestry businesses.Prior to the issuance of Regulation 64/2017, PSDH and GRT were regulated under Ministry of Forestry Regulation No. P.68/MENHUT-II/2014 (“ Regulation 68/2014 ”).Benchmark Pricing for Forestry ProductsAppendix I-III to Regulation 64/2017, sets out a list of benchmark prices for three types of forestry commodities (“ Forestry Commodities ”), specifically timber forestry products, non-timber products and non-timber products produced through sylvopastural and sylvofishery systems. Details of these products and their corresponding benchmark prices are detailed in the table below: