REPUBLIC OF INDONESIA STATE NEWS

No. 64, 2008 FORESTRY DEPARTMENT. Construction. The forest. The area. North Sumatra. Guidelines.

MINISTER FOR FORESTRY MINISTER NUMBER: P. 60/Menhut-II/2008

ABOUT THE FOREST DEVELOPMENT GUIDELINES OF THE PLANT IN THE REGION

FOREST EKS PLANTATION KPKS HILL OF HOPE AND PT. TORGANDA AS WELL AS COOPERATIVE PARSUB AND PT TORUS DOUBLE IN

FOREST AREA REGISTER 40 PRAIRIE LAWAS AREA OF + 47,000 HA PROPINSI SUMATERA NORTH

WITH THE GRACE OF GOD ALMIGHTY FORESIGHT,

Stated: a. According to the Decree of the Supreme Court of Indonesia Number 2642 K/PID/2006 dated 12 March 2007, evidence seized in the area of palm oil in the forest area of the Padang Lawas area of the Lawas area was covered by KPKS Bukit Harapan and PT. Torganda and the entire building are on it; and an area of + 24,000 hectares held by Koperations Parsub and PT. The Double Torus and the entire building are on it; deprived for the state in this case the Department of Forestry;

b. That given in the forest area is an asset of palm oil plants, palm oil mills, buildings, and supporting equipment, it would be

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providing guidelines in the management of the forest area in question;

c. that in order to provide the Plant Forest Development Guidelines within the Plantation Forest Area KPKS Hill Expectations and PT. Torganda and Koperation Parsub and PT Torus Ganda in Areal Area Forest Register 40 Padang Lawas Covering an area of + 47,000 Ha Propinsi North Sumatra, need to be established with the Ordinance of the Minister of Forestry;

Given: 1. Law No. 20 of 1997 on Reception of State Not Tax (State Gazette of the Republic of Indonesia in 1997 No. 43, Additional Gazette of the Republic of Indonesia Number 3687);

2. Law No. 41 of 1999 on Forestry (sheet of state of the Republic of Indonesia in 1999 Number 167, Additional Gazette of the Republic of Indonesia No. 3888), as amended by Invite Invite Number 19 Year 2004 on Redemption Rule Number 1 of the Year 2004 Act on Change of Law No. 41 Year 1999 on Forestry Act (Sheet State Republic Of Indonesia 2004 Number 86, Additional Sheet Of State Republic Of Indonesia) Indonesia Number 4412);

3. Law No. 32 of the Year 2004 on the Government of the State (Indonesian Republic of Indonesia Year 2004 Number 125, Additional Gazette of the Republic of Indonesia No. 4437), as it has been several times amended, last by Act No. 12 2008 (sheet Of State Of The Republic Of Indonesia In 2008 Number 59, Additional Gazette Of The Republic Of Indonesia Number 4844);

4. Government Regulation Number 35 Year 2002 on Dana Rebozation (State of the Republic of Indonesia 2002 Number 67, Additional Gazette Republic of Indonesia Number 4207), as amended by Government Regulation No. 58 Year 2007 (State of the Republic of Indonesia in 2007 No. 4776,

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Additional Sheet Republic Of Indonesia Number 131);

5. Government Regulation No. 44 Year 2004 on Forestry Planning (State Of The Republic Of Indonesia 2004 Number 146, Additional Gazette Republic Of Indonesia Number 4452);

6. Government Regulation No. 45 of 2004 on Forest Protection (State Sheet Indonesia Year 2004 Number 147, Additional Gazette of the Republic of Indonesia Number 4453);

7. Government Regulation No. 6 of 2007 on the Forest and Drafting Of Forest Management Plan, as well as Forest utilization (State Gazette of 2007 No. 22, Additional Gazette of the Republic of Indonesia Number 4696), as well as the has been amended by Government Regulation No. 3 of 2008 (Gazette of the Republic of Indonesia 2008 No. 16, Additional Gazette of the Republic of Indonesia No. 4814);

8. President's decision No. 187 in 2004 on the Establishment of the United Indonesia Cabinet, as amended several times, was last with Presidential Decree Number 31 /P of 2007;

9. Policy of the President of the Republic of Indonesia No. 9 Year 2005 on Occupation, Duty, Functions, Organizations, and Works of the Ministry of State of the Republic of Indonesia, as it has been several times amended, last with the Presidential Regulation Number 20 Year 2008;

10. The Presidential Decree No. 10 of 2005 on the Unit of Organization and Duty of Eselon I Ministry of State of the Republic of Indonesia, as it has been several times amended, last with the Presidential Regulation No. 50 of 2008;

11. Regulation of Forestry Minister Number P. 13/Menhut-II/2005 on the Structure of Organization and Workforce Department of Forestry, as has been several times amended, last with the Ordinance of the Minister of Forestry Number P. 15/Menhut-II/2008;

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DECREED: Establishing: REGULATION OF FORESTRY MINISTER ON

FOREST DEVELOPMENT GUIDELINES PLANT IN FOREST AREA OF THE KPKS PLANTATION HILL HOPES AND PT. TORGANDA AS WELL AS THE COOPERATIVE PARSUB AND PT. THE DOUBLE TORUS IN THE FOREST AREA REGISTERS 40 FIELDS OF LAWAS AREA OF + 47,000 HA PROPINSI NORTH OF SUMATRA.

CHAPTER I OF THE GENERAL PROVISION OF Article 1

In Regulation of this Minister referred to: a. The forest area of the KPKS Bukit Harapan and PT plantations. Torganda

as well as Koperations Parsub and PT. Torus Ganda is a forest area referred to in the Decree of the Supreme Court of RI Number 2642 K/PID/2006 dated 12 Pebruary 2007.

b. The winner of the auction is an individual or entity designated as the holder of IUPHHK-HT in the forest area of the KPKS Bukit Harapan and PT plantations. Torganda as well as Koperations Parsub and PT. Double Torus.

c. Plant forest development is the planting of forest plants in the area of the forest area of the KPKS Bukit Harapan and PT plantations. Torganda as well as Koperations Parsub and PT. " Torus Ganda.

Article 2 of the construction of the plant forest is intended to allow the forest area to be originally a palm oil plantation again serving as a production forest. Article 3 (1) For the purpose of developing a plant forest as

referred to in Article 2, it needs to be appointed the managing company and holder of the IUPHHK-HT.

(2) The company designation as referred to in paragraph (1) is performed by means of a request that the winner is specified in the auction.

(3) The order of the offering in the auction as referred to in paragraph (2) follows the rules Applicable laws.

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Article 4

(1) The application in the auction as referred to in Article 3 of the paragraph (2) includes:

a. The nominal value of the overall asset value must be paid by the winner of the auction plus the operational cost of preparation and execution of the Decree No. 2642 K/PID/2006 included the operational costs of the Supervision Team and incentives.

b. Management of the forest area of the KPKS Bukit Harapan and PT plantations. Torganda as well as Koperations Parsub and PT. Double Torus.

(2) The nominal value of the calculation of the overall value of the asset as referred to in paragraph (1) the letter of a was deployed to the state treasury after minus the operational costs of preparation and execution of the Termination of MARI Number 2642 K/PID/2006 includes the operational costs of Supervision Team and incentives.

Article 5

(1) The IUPHHK-HT is granted the right to manage the most prolonged forest area for a time term of 95 (ninety-five) years and be extended.

(2) The construction of plant forests in the forest area of Padang Lawas is a continuation the management performed by the Provisional Board of Governing Bodies under this provision.

Article 6

The forest construction of the plant in the wilderness area of Padang Lawas as referred to in Article 5 of the paragraph (2) includes activities:

a. Planting a forest plant. B. Replace (conversion) of palm palm trees with forest plants.

Article 7

In the framework of plant forest development as referred to in Article 6 of the permit holder:

a. Employ an ex-plantation employee in accordance with the capacity and field of duty each during this time.

b. As a result, new management can reposition and rotate the employee.

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CHAPTER II MANAGEMENT

SECTION OF PALM OIL CROP

Article 8 (1) The management activities of palm oil crops include maintenance activities,

harvesting, processing of palm oil mills which be on the site of the former plantation, and the marketing of palm oil output.

(2) Cannot do palm oil crop or do the planting of new palm oil plants on empty areal.

(3) In carrying out activities management, it is forbidden to involve the management of KPKS Bukit Harapan and PT. Torganda as well as Koperations Parsub and PT. Double Torus.

Article 9 Each production of palm oil crops is a Crude Palm Oil (CPO) of the palm oil plant levied a provision according to the rules of the invite-invitation.

Article 10 (1) Replace (conversion) of the coconut plant The twenty-five (two

twenty-five) year or less with a forest plant. PART TWO

PLANTING OF FOREST Forests Chapter 11

(1) Planting is carried out on vacant land, among palm trees and the vacant land of the former palm oil plant that has died/felled after the age of 25 (twenty-five) years.

(2) Plants grown using superior seedlings. (3) Licensee's authorized use of the Program is licensed under the terms (4) The management plan as referred to in paragraph (3) as per the rules

applicable laws. (5) Governing Provisions on Plant Forest Forests (PHHK-HT)

in accordance with applicable laws and implementing the People's Core Pattern (PIR) in the construction of a plant forest.

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THIRD SECTION

UTILIZATION OF PUBLIC FACILITIES

Article 12

All public facilities such as: hospitals, school buildings, mess, houses of worship, electrical grid, and road networks that have been above the areal are utilized optimally.

FOURTH SECTION

SUPERVISION

Article 13

(1) Licensee is required reported all of its activities every 6 (six) months to the Minister of Forestry.

(2) The Minister of Forestry is supervising the management implemented by the Licensee.

(3) The Oversight is referred to the verse (2) covering certainty replacement of palm oil crop with forest plants, adherence to Obligations as permitted.

(4) the Minister provides administrative sanction of the revocation of IUPHHK-HT if the holder is not running its obligations and or violating the provisions of the laws applicable after previously given a warning of 3 (three times).

Article 14

(1) To oversee and assist the agility of the construction of a plant forest, the Minister of Forestry can designate the Forest Development Agency of Plant Eks Plantation Crop.

(2) The Agency consists of an element Department of Forestry, Government of Propinsi, and Government of the County.

BAB III

provisions CLOSING

Article 15

The Regulation of the Minister is in effect since the date is set and effective after execution of the execution of the Supreme Court of the Republic of Indonesia 2642 K/PID/2006.

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In order for everyone to know, the Ordinance of the Minister of Forestry is promulred by its placement in the News of the Republic of Indonesia.

Specified in Jakarta on 6 October 2008 MINISTER OF FORESTRY, H. " M.S. KABAN

promullated in Jakarta on 22 October 2008 MINISTER OF LAW AND HUMAN RIGHTS REPUBLIC OF INDONESIA, ANDI MATTALATA

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