Kemenhut Revises Forest Utilization Direction Maps to Provide Investment Certainty

The Ministry of Forestry (“Kemenhut”) is currently updating the Forest Utilization Direction Map (Peta Arahan Pemanfaatan Hutan - “PAPH”) to provide legal certainty for investors and promote sustainable investment. Drajat Kurniadi, Head of the Subdirectorate for the Planning of Production Forest and Protection Forest Areas, stated that the PAPH is prepared to ensure the legality of forest areas for which investors may apply for Business Licenses for Forest Utilization (Perizinan Berusaha Pemanfaatan Hutan - “PBPH”).

“We have prepared this PAPH with the aim of providing prospective investors with certainty regarding the areas made available through the PAPH and assuring them that these areas are clean and clear,” Drajat stated.

To ensure the suitability of forest areas, Kemenhut conducts a screening process based on nine thematic maps. The process begins with the Forest Area Function Map (Peta Fungsi Kawasan Hutan), which is then aligned with the National Forestry Plan Map (Peta Rencana Kehutanan Tingkat Nasional - “RKTN”) and the Indicative Map for the Suspension of New Licensing. Kemenhut also excludes social forestry areas, Land Objects for Agrarian Reform (Tanah Objek Reforma Agraria - “TORA”), and areas subject to the Settlement of Land Tenure in the Context of Forest Area Reorganization (Penyelesaian Penguasaan Tanah dalam rangka Penataan Kawasan Hutan - “PPTPKH”).

The screening process also takes environmental sustainability into account, including the protection of peatland ecosystems and the exclusion of forest and land rehabilitation areas. In addition, special blocks and core blocks within Forest Management Units are excluded from the allocation of forest utilization areas.

Going forward, Kemenhut intends to develop the PAPH into a digital investment map equipped with information on land suitability and commodity potential. This development is expected to facilitate investors in identifying business opportunities in forest utilization, while ensuring that investment activities are conducted with legal certainty and due regard for environmental sustainability.