akar.earthPBPH: Definition
What is PBPH (Perizinan Berusaha Pemanfaatan Hutan)? Indonesia's forest utilisation business licence, multi-business forestry and its role in carbon projects.
PBPH (Perizinan Berusaha Pemanfaatan Hutan) is Indonesia’s business licence for utilising production or protection forest areas. Introduced under the Job Creation (Cipta Kerja) reforms, it replaced several older concession licences with one licence that can cover multiple business activities, including timber, non-timber products, ecosystem restoration and environmental services such as carbon.
Why it matters
A large share of Indonesia’s production forest is under concession. PBPH holders control large areas where REDD+, improved forest management, restoration and ARR could happen. The shift to multi-business forestry lets licence holders combine timber with carbon and other services, changing project economics. Licence status also determines who can legally claim carbon rights.
How it works
- Companies apply for PBPH over a defined forest area, with obligations on management plans, production limits and environmental standards.
- The licence can allow several activities on the same area, subject to approval.
- Carbon activities follow forestry carbon rules, now in Permenhut 6/2026, including registration in SRUK and authorisation steps.
- Licence holders must respect community rights and may partner with communities under forestry partnership schemes.
See PBPH licences.
Indonesia and Southeast Asia angle
Former ecosystem restoration concessions on peat in Sumatra and Kalimantan have hosted some of Indonesia’s best-known REDD+ projects, now under the PBPH regime. Timber concessions considering improved forest management need to show additionality against their legal logging rights. For EUDR, wood from PBPH areas must be legal and harvested without forest degradation after 2020.
Due diligence on any PBPH area should check the licence status, any overlapping permits or claims, compliance history, fire records and the scope of approved activities. Buyers of credits from concession areas will ask for this, and EUDR operators sourcing wood will need similar checks for legality and degradation.
Common mistakes
- Assuming a PBPH automatically includes carbon rights without the right approvals.
- Overlooking overlapping community claims inside licence areas.
- Relying on old licence names in contracts and due diligence.
Read Permenhut 6/2026 and visit the Indonesia regulation hub.
Frequently asked questions
Can a PBPH holder run a carbon project?
PBPH supports multi-business forestry, which can include environmental services such as carbon. The holder must follow the forestry carbon procedures, now set out in Permenhut 6/2026, and its licence terms.
What did PBPH replace?
It consolidated earlier forest concession licences, such as natural forest and plantation timber licences and ecosystem restoration licences, into a single business licensing regime.