Decree No. P. 36/Menhut - II/2009 regarding procedures for licencing of commercial utilization of carbon sequestration and/or storage in production and protected forests.

License for utilizing environmental services of timber in natural forest, of timber from Plantation Forests, of IUPHHK-RE (UPHHK Restoration Ecosystem within natural forest is a license for business given to develop natural forest area of important ecosystem), of timber from Community Plantation Forest shall be subject to authorization by the Ministry of Forestry. Carbon sequestration and/or carbon storage (UP RAP-KARBON and/or UPPAN-KARBON) is a methodology of commercial utilization of environmental services in protected forests whereby planting, maintenance, harvesting, sylviculture, and selective logging shall increase productivity. Request for compliance with criteria set by licensing requirements in areas not possessing permit for utilization of forest timber products is mandatory. Licenses may be issued by the Head of District/City (article 9) which shall be responsible for the Management of Forest Production between the permit holder (entity) and the investor with regards to trade, maintenance and development of forest resources, capacity development of local community and project development/replication for the surrounding areas. The results of project development activities are carbon commodities, which can be marketed on the national or international carbon market.