How Is Social Forestry Managed Under PERMENLHK 9/2021?

Social forestry programs in Indonesia enable local communities to manage state forest areas through formal legal arrangements. Peraturan Menteri Lingkungan Hidup dan Kehutanan Nomor 9 Tahun 2021 tentang Pengelolaan Perhutanan Sosial ("PERMENLHK 9/2021") consolidates the procedural framework for five distinct social forestry schemes: Hutan Desa, Hutan Kemasyarakatan, Hutan Tanaman Rakyat, Hutan Adat, and Kemitraan Kehutanan. This regulation, enacted on March 31, 2021 and effective from April 1, 2021, replaced three prior ministerial regulations (PERMENLHK 83/2016, PERMENLHK 11/2020, and PERMENLHK 17/2020) and comprises 12 chapters with 200 articles spanning 268 pages. The regulation implements Article 247 of Peraturan Pemerintah Nomor 23 Tahun 2021 tentang Penyelenggaraan Kehutanan, establishing detailed procedures for permit applications, verification processes, management requirements, and business organization structures.

This analysis examines the procedural architecture of PERMENLHK 9/2021, identifying how the regulation structures permit approvals, defines management rights and obligations, and establishes business development pathways through Kelompok Usaha Perhutanan Sosial (KUPS). The regulation's comprehensive scope addresses permit duration, verification timelines, documentation requirements, and administrative sanctions, creating a standardized framework for community-based forest management across Indonesia's diverse forest classifications.

I. Regulatory Overview

A. Legal Basis and Scope

PERMENLHK 9/2021 derives its authority from multiple legislative instruments. The primary legal foundation rests on Article 17 Paragraph (3) of the 1945 Constitution of Indonesia, which establishes state control over natural resources. Subsequent enabling legislation includes Undang-Undang Nomor 41 Tahun 1999 as amended by Undang-Undang Nomor 11 Tahun 2020 (Forestry Law), Undang-Undang Nomor 39 Tahun 2008 (concerning state ministries), and Peraturan Pemerintah Nomor 23 Tahun 2021 tentang Penyelenggaraan Kehutanan. Presidential Regulation Nomor 92 Tahun 2020 and PERMENLHK Nomor 18 Tahun 2015 provide additional procedural frameworks.

The regulation establishes a comprehensive governance framework covering eight core areas. These include management approval procedures for social forestry (Persetujuan Pengelolaan Perhutanan Sosial), operational management activities, social forestry on peat ecosystems (Perhutanan Sosial pada Ekosistem Gambut), transition periods for community plantations (Jangka Benah kebun rakyat), supervision and monitoring mechanisms, accelerated implementation procedures, and administrative sanctions. This broad scope integrates environmental conservation objectives with community welfare goals, reflecting the dual mandate of sustainable forest management and poverty reduction through resource access.

B. Definition Framework

Pasal 1 of PERMENLHK 9/2021 defines Perhutanan Sosial as "sistem pengelolaan hutan lestari yang dilaksanakan dalam kawasan hutan negara atau Hutan Hak/Hutan Adat yang dilaksanakan oleh Masyarakat Setempat atau Masyarakat Hukum Adat sebagai pelaku utama untuk meningkatkan kesejahteraannya, keseimbangan lingkungan dan dinamika sosial budaya dalam bentuk Hutan Desa, Hutan Kemasyarakatan, Hutan Tanaman Rakyat, Hutan Adat dan kemitraan kehutanan." This definition establishes sustainable forest management systems implemented in state forest areas or customary/indigenous forests by local communities or indigenous legal communities as primary actors to improve welfare, environmental balance, and sociocultural dynamics.

The regulation distinguishes five social forestry modalities. Hutan Desa (HD) is defined as forest areas not yet encumbered by permits, managed by villages and utilized for village welfare. Hutan Kemasyarakatan (HKm) encompasses forest areas primarily intended for community empowerment. Hutan Tanaman Rakyat (HTR) involves production forest areas where farmer groups, cooperatives, or individuals cultivate timber through silviculture techniques. Hutan Adat refers to forests within customary territories of indigenous legal communities (Masyarakat Hukum Adat). Kemitraan Kehutanan represents partnership arrangements between permit holders and local communities. Each modality serves distinct community needs while maintaining ecological sustainability requirements.

The regulation introduces the concept of Kelompok Usaha Perhutanan Sosial (KUPS), defined as business groups formed by permit holders (Kelompok Pengelola Perhutanan Sosial/KPS) that will conduct or have conducted business activities. This institutional innovation creates formal structures for economic enterprise within social forestry frameworks. KUPS formation enables multiple business activities aligned with forest potential, allowing communities to develop diversified income streams beyond subsistence extraction. The KUPS framework bridges traditional community forest management and commercial forestry operations, providing legal structures for market engagement while maintaining community control over resource governance.

II. Social Forestry Schemes and Forest Allocation

A. Scheme Differentiation and Forest Classification

PERMENLHK 9/2021 allocates social forestry schemes across three forest function classifications: Hutan Konservasi (Conservation Forests), Hutan Lindung (Protection Forests), and Hutan Produksi (Production Forests). This functional differentiation determines which social forestry modalities may be implemented in specific forest areas, aligning community access with conservation imperatives and sustainable management principles. Forest classification reflects ecosystem sensitivity, biodiversity values, watershed protection functions, and production capacity, creating a matrix of permissible activities for each forest type.

Conservation Forests permit only Kemitraan Konservasi (Conservation Partnerships), restricting activities to conservation-compatible uses that do not compromise protected area objectives. Implementation follows separate regulations governing conservation of natural resources and ecosystems, maintaining strict control over extractive activities. Protection Forests allow three modalities: Persetujuan Pengelolaan HD (Village Forest Management Approval), Persetujuan Pengelolaan HKm (Community Forest Management Approval), and Kemitraan Kehutanan (Forest Partnerships). This intermediate classification balances watershed protection and soil conservation functions with limited community use rights.

Production Forests accommodate the broadest range of social forestry schemes, including Persetujuan Pengelolaan HD, Persetujuan Pengelolaan HKm, Persetujuan Pengelolaan HTR (Community Plantation Forest Management Approval), and Kemitraan Kehutanan. Production Forests prioritize sustainable timber production and non-timber forest products, enabling communities to engage in commercial forestry activities while maintaining forest cover. This allocation framework channels intensive cultivation activities toward Production Forests, preserving ecological functions in Conservation and Protection Forests while expanding economic opportunities in areas designated for sustainable production.

B. Permit Duration and Extension

The regulation establishes standardized permit durations for social forestry approvals. Persetujuan Pengelolaan HD, Persetujuan Pengelolaan HKm, and Persetujuan Pengelolaan HTR are granted for 35-year terms and may be extended. This lengthy initial period provides communities with long-term tenure security essential for sustainable forest management investments, enabling multi-generational planning horizons and incentivizing forest improvement activities that yield returns over decades rather than years.

Kemitraan Kehutanan arrangements follow different duration principles, aligning partnership periods with the tenure of the primary permit holder. When partnerships involve business permit holders for forest utilization (perizinan berusaha Pemanfaatan Hutan) or forest area use approvals (persetujuan penggunaan kawasan hutan), the partnership duration matches the remaining validity period of those primary permits. This synchronization prevents tenure mismatches and ensures partnership stability throughout the primary permit term.

Extension mechanisms provide continuity for successful management arrangements, subject to performance evaluation and compliance verification. The regulation does not specify automatic renewal rights, requiring permit holders to demonstrate sustainable management outcomes, regulatory compliance, and continued community benefit before extension approval. This renewal requirement creates accountability mechanisms, linking tenure extension to documented stewardship performance and community welfare outcomes. The 35-year base period significantly exceeds typical crop rotation cycles for plantation forestry, enabling communities to harvest multiple timber rotations under a single permit approval.

III. Permit Application and Verification Procedures

A. Verification Timelines and Administrative Review

PERMENLHK 9/2021 establishes expedited administrative verification procedures to reduce bureaucratic delays in permit processing. For Hutan Kemasyarakatan (HKm) applications, administrative verification must be completed within three days maximum. This compressed timeline applies to document completeness checks, formal requirements assessment, and initial eligibility screening, preventing indefinite processing delays common in earlier social forestry programs. The regulation assigns specific verification responsibilities to designated officials, creating accountability for timely review.

Administrative verification examines formal documentation completeness rather than substantive merit evaluation. Verification personnel confirm that applications contain required legal documents, organizational certifications, and supporting materials specified in applicable regulations. This administrative phase precedes technical field verification, which assesses physical forest conditions, community claims, and management feasibility. The separation of administrative and technical verification creates a two-stage review process, enabling quick rejection of incomplete applications while reserving detailed field assessment for administratively compliant submissions.

The three-day administrative verification deadline represents a significant acceleration compared to prior regulatory frameworks, where permit processing frequently extended for months or years due to bureaucratic inertia and unclear procedural timelines. By imposing maximum time limits, the regulation creates performance standards for forest officials, enabling applicants to escalate delayed applications through administrative oversight mechanisms. This timeline standardization reduces discretionary power over permit approval, limiting opportunities for unofficial fee extraction or preferential processing based on political connections rather than regulatory compliance.

B. Technical Verification Criteria

Technical verification for Hutan Desa (HD) permits examines both subject qualification and object suitability. Object verification assesses the proposed forest area against multiple spatial planning criteria, including forest management zoning in long-term forest management plans (rencana pengelolaan hutan jangka panjang), administrative boundaries, customary forest boundaries, oil palm and primary forest cover, indicative agrarian reform areas (areal indikatif tanah objek reforma agraria), areas where new permits have been halted (areal peta indikatif penghentian pemberian izin baru), peat ecosystem conditions, and third-party tenure claims.

This multi-criteria assessment prevents permit allocation in areas unsuitable for community management or where conflicting claims exist. Forest management zoning verification ensures HD permits align with spatial plans designating specific forest blocks for social forestry rather than industrial concessions or conservation reserves. Administrative boundary verification prevents cross-jurisdictional conflicts where village territories overlap with protected areas or other administrative units. Customary forest boundary checks avoid tenure conflicts with indigenous communities holding separate recognition under Hutan Adat provisions.

Subject verification for HD examines village institutional capacity through discussions and interviews with Village Management Institutions (Lembaga Desa) and beneficiary representatives. Verification officials assess organizational structure, governance procedures, and community representation mechanisms. Beneficiary verification confirms that HD recipients are local residents (warga setempat), with one family represented by one person, providing equal opportunities to both men and women as specified in Pasal 10. This gender equity provision addresses historical exclusion of women from forest management decision-making, requiring explicit attention to female representation in beneficiary lists and governance structures.

Area expansion provisions permit additional territory to be added to existing HD permits under specific circumstances. Expansions based on natural boundaries (batas alam), forest area boundaries (batas kawasan), or cultivated area boundaries (batas garapan) may be approved to rationalize management units. When area expansions exceed five percent of the original permit area, applicants must revise and resubmit formal application letters. This threshold balances administrative efficiency for minor boundary adjustments against the need for substantive review of major expansions that fundamentally alter permit scope and management obligations.

IV. Business Development Through KUPS

A. KUPS Formation and Legal Structure

Kelompok Usaha Perhutanan Sosial (KUPS) serves as the organizational vehicle for commercial forest enterprise within social forestry frameworks. KUPS are formed by Kelompok Pengelola Perhutanan Sosial (KPS), the permit-holding entities managing social forestry areas. Where communities possess multiple business opportunities, they may establish several KUPS aligned with different economic activities, enabling specialized management for timber production, non-timber forest products, ecotourism, or other forest-based enterprises. This modular approach prevents organizational overextension and allows communities to sequence business development according to capacity and market opportunities.

KUPS require formal legal establishment through notarial acts, creating juridical persons capable of entering contracts, accessing credit, and conducting business transactions. The legal documentation requirements for KUPS include Articles of Association for the social forestry management group (Akta Notaris KPS) and separate Articles of Association for KUPS as business entities (Akta Notaris Badan Usaha KUPS). This dual structure maintains separation between resource governance functions (KPS) and commercial operations (KUPS), protecting community assets from business liabilities while enabling enterprise development.

Additional documentation requirements include bank accounts in the names of both KPS and KUPS, tax identification numbers (NPWP), domicile certificates for organizational offices, and business licensing documents. Business permits vary by enterprise scale: Surat Izin Usaha Mikro dan Kecil for small-scale operations, Surat Izin Usaha Perdagangan (SIUP) for commercial trade, and Tanda Daftar Perusahaan (TDP) for company registration. These requirements integrate social forestry enterprises into formal business regulation frameworks, enabling access to banking services, government procurement opportunities, and commercial markets requiring documented legal status.

B. Management Planning Requirements

KUPS operations require comprehensive management documentation covering spatial zoning, temporal planning, and business modeling. Spatial planning documents include Work Plans (Rencana Kerja Usaha/RKU), Village Forest Management Plans (RPHD), Forest Partnership Management Plans (RP-Kemitraan Kehutanan), Annual Work Plans (Rencana Kerja Tahunan/RKT), and Business Model Plans (Rencana Model Usaha). These planning instruments translate permit conditions into operational schedules, harvest quotas, investment programs, and monitoring protocols.

Work Plans (RKU) establish long-term management strategies over the full permit period, defining forest management objectives, silvicultural systems, harvest rotations, and conservation measures. These strategic plans provide frameworks for annual operational planning, ensuring yearly activities contribute to long-term sustainability goals rather than maximizing short-term extraction. Village Forest Management Plans (RPHD) detail specific activities for Hutan Desa permits, including benefit distribution mechanisms, community participation procedures, and linkages to village development planning.

Forest Partnership Management Plans (RP-Kemitraan Kehutanan) govern partnership arrangements between permit holders and communities, specifying benefit-sharing ratios, management responsibilities, and dispute resolution procedures. Annual Work Plans (RKT) translate strategic plans into yearly implementation schedules, including specific harvest volumes, planting targets, infrastructure investments, and operational budgets. Business Model Plans analyze market opportunities, production costs, revenue projections, and marketing strategies, applying business planning disciplines to forest enterprise development. This comprehensive planning framework professionalizes social forestry operations, moving beyond informal customary management toward documented, accountable, and performance-oriented forest governance.

V. Transitional Provisions and Regulatory Integration

A. Grandfathering Prior Permits

Article 198 establishes transitional provisions for permits issued under prior regulatory frameworks, creating legal continuity during the regulatory transition. Existing permits issued before PERMENLHK 9/2021 took effect remain valid until their expiration dates, protecting tenure security for communities operating under previous regulations. These grandfathered permits include HPHD (Hak Pengelolaan Hutan Desa/Village Forest Management Rights), IUPHKm (Izin Usaha Pemanfaatan Hutan Kemasyarakatan/Community Forest Utilization Permits), IUPHHK-HTR (Izin Usaha Pemanfaatan Hasil Hutan Kayu Hutan Tanaman Rakyat/Community Plantation Forest Timber Utilization Permits), KULIN KONSERVASI (Kuasa Pemanfaatan Lingkungan Konservasi/Conservation Environment Utilization Authorization), KULIN KK (similar authorizations for forest partnerships), and Hutan Adat determinations.

Applications in process when PERMENLHK 9/2021 took effect continue under the new regulatory framework, adjusted to comply with updated procedures. This provision prevents applicants from losing priority due to regulatory changes, while ensuring all ultimately-approved permits meet current standards. The regulation does not require existing permit holders to immediately adopt all new requirements, recognizing the disruptive impact of mandatory mid-term permit modifications on ongoing management activities and business operations.

Permit extension applications for grandfathered permits will be processed under PERMENLHK 9/2021 requirements, creating a gradual transition as older permits reach their expiration dates. This phased approach balances regulatory modernization with stability for existing permit holders, avoiding abrupt policy shifts that could destabilize community forest enterprises developed under prior rules. Communities benefit from predictable regulatory environments where investments made under previous frameworks remain protected, while new applicants and renewing permit holders operate under updated, standardized procedures designed to address implementation challenges identified during earlier social forestry programs.

B. Integration With Broader Forestry Governance

PERMENLHK 9/2021 exists within a complex regulatory ecosystem governing Indonesian forestry. The regulation specifically implements Article 247 of Peraturan Pemerintah Nomor 23 Tahun 2021 tentang Penyelenggaraan Kehutanan, creating implementing procedures for ministerial-level forest management. This hierarchical integration ensures social forestry regulations align with broader forest governance principles established at the government regulation level, preventing contradictions between ministerial regulations and superior legislation.

The regulation explicitly revoked five prior regulatory instruments to consolidate social forestry governance under a single framework. Revoked regulations include Peraturan Menteri Kehutanan Nomor P.3/MENHUT-II/2012 tentang Rencana Kerja pada Usaha Pemanfaatan Hasil Hutan Kayu Hutan Tanaman Rakyat, Peraturan Menteri Lingkungan Hidup dan Kehutanan Nomor P.83/MENLHK/SETJEN/KUM.1/10/2016 tentang Perhutanan Sosial, Peraturan Menteri Lingkungan Hidup dan Kehutanan Nomor P.37/MENLHK/SETJEN/KUM.1/7/2019 tentang Perhutanan Sosial pada Ekosistem Gambut, Peraturan Menteri Lingkungan Hidup dan Kehutanan Nomor P.11/MENLHK/SETJEN/KUM.1/5/2020 tentang Hutan Tanaman Rakyat, and Peraturan Menteri Lingkungan Hidup dan Kehutanan Nomor P.17/MENLHK/SETJEN/KUM.1/7/2020 tentang Hutan Adat dan Hutan Hak.

This consolidation addresses regulatory fragmentation where different social forestry modalities operated under separate procedural frameworks, creating inconsistent application requirements, documentation standards, and approval timelines. By unifying all five schemes under a single regulation, PERMENLHK 9/2021 reduces bureaucratic complexity for applicants, enables standardized training for forestry officials, and facilitates comparative performance evaluation across different social forestry types. The regulation retains scheme-specific provisions where modality differences require tailored procedures, while standardizing common elements such as permit duration, verification criteria, and business organization structures.

Cross-referencing with conservation regulations governs Kemitraan Konservasi implementation, deferring to specialized conservation area management frameworks where social forestry intersects with protected area management. This regulatory interface approach prevents PERMENLHK 9/2021 from creating conflicts with biodiversity conservation mandates, instead establishing coordination mechanisms where community access and conservation objectives must be balanced through integrated planning and adaptive management protocols.

Regulatory Matrix: PERMENLHK 9/2021 Key Provisions

Compliance Requirements Matrix

Source: Peraturan Menteri Lingkungan Hidup dan Kehutanan Nomor 9 Tahun 2021 tentang Pengelolaan Perhutanan Sosial. For the official regulation, visit https://peraturan.bpk.go.id/Details/235324/permen-lhk-no-9-tahun-2021

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