|Oene Marseille||Emir Nurmansyah|
The borrow-to-use permit is issued by the Minister of Forestry of Indonesia. This permit is one of the most important, yet onerous licences to obtain before conducting any natural resource exploration and exploitation activities in a forest area in Indonesia. Industries traditionally affected by this permit requirement include oil and gas, geothermal, coal and other minerals, power generation, lumber, and plantations.
Failure to obtain this required permit could lead to fines and other sanctions (including possible criminal prosecution and prison sentence for the company's directors and management, under article 78 of Law 41 1999). Because 60% of Indonesia's land area is forest, this permit should be given special consideration.
Obtaining this licence can often turn out to be a frustrating endeavor, but further reform is anticipated. The new guidelines, although far from a comprehensive reform, are a step in the right direction in simplifying the often opaque review process.
Oene Marseille and Emir Nurmansyah
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