Finance Minister asks BKPM to prepare regulation for production forest utilisation in Aceh

Finance Minister Purbaya Yudhi Sadewa has asked the Ministry of Investment and Downstreaming/BKPM to prepare regulations for the utilisation of production forests to address business obstacles in Aceh Jaya Regency. “There is a company that wants to utilise the forest area, but it is constrained,” Purbaya told reporters after the 13th Debottlenecking Session at the Ministry of Finance office in Jakarta on Wednesday. The complaint came from PT Ika Trias Serangkai, a company that processes and exports non-timber forest products based on pine resin, operating in Aceh Province. The problem arose from the non-issuance of a Business Licensing Commitment for Forest Utilisation for a production forest area covering approximately 44,715 hectares in Aceh Jaya Regency. The proposed area is largely indicated to be within the former concession area of PT Aceh Inti Timber, whose permit has been revoked, so its arrangement must follow a special mechanism for land management resulting from the revocation of concessions as stipulated in Presidential Regulation Number 70 of 2023. “They did not get the land permit because there was a bit of confusion over which regulation applies and who has the authority to issue the permit. After we looked into it, it turns out it is still held by the Ministry of Investment,” Purbaya explained. “So I asked the Ministry of Investment to immediately work with the investor to see the possibility of issuing a utilisation letter for that area,” he added. BKPM will reportedly coordinate further with the Ministry of Forestry, the Ministry of Energy and Mineral Resources, and PT Ika Trias Serangkai to accelerate the resolution. Considering there are indications of similar cases on other former revoked concession lands, the resolution of this case could potentially become a policy precedent, so it will be decided carefully and in a coordinated manner. “This is beneficial because, as the Acehnese say, they also want it to proceed, so that it can generate business in Aceh with revenue for the region,” the Finance Minister said.