Government Plans to Issue Moratorium on Forest Concession Rights (HPH)

The government plans to issue a moratorium policy on activities related to Forest Concession Rights (Hak Pengusahaan Hutan – “HPH”) in natural forests. The policy is intended to curb the rate of deforestation.

Minister of State Secretary Prasetyo Hadi explained that “A moratorium will be imposed. Once the permits are revoked, the type of business and the companies carrying out forestry-based activities will cease their operations,” Prasetyo Hadi told Hukumonline.

The moratorium will also cover Business License for Timber-Forest Product Utilization in Natural Forests (Izin Usaha Pemanfaatan Hasil Hutan Kayu pada Hutan Alam – “IUPHHK-HA”). Once the policy comes into effect, economic activities in the affected areas will be redirected toward sectors that do not involve timber utilization.

One of the regions that will implement this policy is the Mentawai Islands in West Sumatra. According to Prasetyo Hadi, “If developed for tourism, it may have potential that is far greater than cutting down the timber,” he said.