What Comprehensive Forestry Implementation Standards Apply Under PP 23/2021?
PP 23/2021 on the Organization of Forestry implements Indonesia's framework forest law (UU 41/1999) with specific numerical standards, timelines, and thresholds that forest concession holders and government agencies must follow. This regulation translates broad forestry principles into measurable compliance requirements.
Protection Forest Designation Criteria
PP 23/2021 establishes physical criteria that automatically designate forest areas as Protection Forest (Hutan Lindung). These criteria are non-negotiable geographic standards.
Mandatory Protection Forest Classification:
Forest areas meeting any of these criteria cannot be designated as Production Forest and must be maintained as Protection Forest regardless of other land use pressures.
Forest Inventory Frequency Standards
The regulation mandates minimum inventory frequencies across all administrative levels. These are not optional guidelines but required periodic assessments.
Mandatory Inventory Schedules:
These synchronized 5-year cycles ensure consistent national forest monitoring data.
Operational Performance Standards for Concession Holders
PP 23/2021 specifies minimum performance thresholds that trigger administrative sanctions if not met.
Minimum Performance Requirements (Pasal 156):
The 50% threshold for "real activities" (kegiatan nyata) is critical because failure to achieve this level within the specified period may result in permit revocation.
Harvesting Tolerance Standards
Timber harvesting operations must stay within strict tolerance bands around approved annual work plans.
Maximum Harvesting Tolerances (Pasal 158):
Exceeding these tolerances, even marginally, triggers the administrative sanction process under BAB IX.
Forest Area Use Limits
Concession holders cannot utilize entire forest management unit areas. Strict caps apply.
KPH Utilization Limit: - Maximum 5% of each KPH area may be utilized for non-forestry purposes - This applies to infrastructure, facilities, and supporting activities - The 5% cap ensures 95% of KPH area remains dedicated to forestry functions
Social Forestry Duration Standards
PP 23/2021 provides explicit permit duration limits for social forestry schemes.
Social Forestry Permit Terms (Pasal, BAB VI):
The 35-year standard across non-customary social forestry types provides long-term security for community forest managers.
Forest Area Use Permit Duration
For non-forestry uses of forest areas (Penggunaan Kawasan Hutan), specific time limits apply.
Permit Duration Standards:
Demarcation Timeline Standards
Forest area boundary demarcation (tata batas) must be completed within strict timeframes.
Demarcation Deadlines:
Failure to complete demarcation within deadlines can result in permit cancellation.
Land Tenure Requirements for Recognition
PP 23/2021 sets minimum requirements for recognizing prior occupation of forest areas.
Occupation Requirements:
These thresholds determine eligibility for land regularization programs within forest areas.
Revenue Sharing Formula (PNBP)
Forest sector non-tax state revenue (PNBP) follows a fixed sharing formula between central and provincial governments.
PNBP Distribution:
This 60:40 split applies to PSDH (Provisi Sumber Daya Hutan) collections from forest product extraction.
Capacity Expansion Threshold
Forest product processing businesses have a threshold that triggers additional permit requirements.
Addendum Requirement: - Production capacity expansion exceeding 30% of permitted capacity requires a business license addendum - Adding new processing types also requires addendum regardless of capacity change
Three-Year Evaluation Cycle
Released forest areas undergo mandatory evaluation.
Post-Release Evaluation: - Evaluation conducted within 3 years after forest area release - Evaluates whether released areas are being used as approved - Non-compliance may result in revocation
Key Compliance Implications
The quantified standards in PP 23/2021 create clear compliance metrics:
- Concession holders must achieve at least 50% of planting and production targets or face sanctions
- Harvesting operations cannot exceed 5% total volume or 3% per-species tolerances
- Social forestry participants have 35-year permit security (except customary forests)
- PNBP revenue splits 60:40 between central and provincial governments
- Protection Forest designation is automatic when slope, elevation, or erosion criteria are met
These numerical standards transform forestry governance from discretionary oversight to measurable compliance verification.
Legal Reference
PP 23 Tahun 2021 tentang Penyelenggaraan Kehutanan - Effective: 2021 - Legal basis: UU 41/1999 (as amended by UU 19/2004), UU 11/2020 (Job Creation Law) - Issuing authority: Government of Indonesia - Official source: JDIH BPK RI
Law Database
Access PP 23/2021 in the CRPG Law Database: PP 23/2021