House of Representatives Proposes That Compensation for Forest Utilization Be Aligned with the Tax Object (NJOP)

Darori Wonodipuro, a member of the Legislative Body (“Baleg”) of the Indonesian House of Representatives (“DPR”), has proposed that the compensation mechanism in the forest restoration and land-use program under the Forestry Draft Bill be based on the assessed value of tax object (“NJOP”).

According to Darori, programs for forest restoration following forest utilization have often been hampered by cost issues. Therefore, he requested that the compensation value derived from forest utilization be equivalent to the cost of the restoration program. “Therefore, moving forward, we should set compensation at the NJOP value,” he said.

Darori stated that by using the NJOP as a reference, the value of forest land use can be calculated more fairly and transparently. In addition, with a fixed amount, the calculation of losses in the event of a violation can be conducted more transparently. Consequently, these funds can be used to repair the resulting damage. 

“Please, in this law, we must be wise and prudent in addressing how the population continues to grow while the forest does not,” said Darori.