The history of forest management in Java and Madura, in a modern-institutional manner, began in 1897 with the issuance of “Reglement voor het beheer der bosschen van den Lande op Java en Madoera“, Staatsblad 1897 number 61 (abbreviated as “Bosreglement“). Besides that, “Reglement voor den dienst van het Boschwezen op Java en Madoera” (abbreviated as “Dienst Reglement“) was also issued, which stipulates the rules regarding the organization of the Forestry Bureau, which the Forestry Bureau was formed with the Gouvernement Besluit (Government Decree) dated February 9, 1897 number 21, contained in Bijblad 5164. Teak forests in Java began to be well managed with the start of afbakening (demarcation), measuring, mapping and forest management.

Bosch_Ordonnantie was published, contained in the Staatsblad of 1927 number 221 and its implementing regulations in the form of Bosch_Verordening 1932, the full name of the document: “Bepalingen met Betrekking Tot’s Lands Boschbeheer op Java en Madoera” which became the basis for forest management and management in Java and Madura by the Forestry Bureau (den dienst van het Boschwezen).

Teak forest management is assigned to the “Djatibedrijf” agency or Government teak forest company (Forestry Bureau). The teak forest company did not last long because, in 1938, Directeur van Financiën (Director of Finance of the Netherlands East Indies Government) stated that the company with pure commercial aims had to be discontinued for the following reasons:

● The Government, represented by the Forestry Bureau, is not only obliged to produce and make money from teak wood products but is also tasked with forest preservation that does not directly benefit the Government. What is meant by the above forests are protected forests, which consume a considerable amount of costs while the direct results are not available or minimal;

●As private entities or individual timber companies, teak forest companies consider Government-owned teak forests as unrated or unvalued capital because it is difficult to determine the price of land and wood from teak forests covering an area of ​​770,000 hectares. So they use the teak forests as objects for exploitation only and do not affect or cause any harm to the land and teak forests owned by the Government as represented by the Forestry Bureau; from a company’s legal point of view, such actions are not correct.

Netherlands East Indies Government returned the task of teak forest management from “Djatibedrijf” to the Forestry Bureau. On March 8, 1942, the Dutch East Indies fell to the Japanese (Dai Nippon); the Japanese named the Forestry Bureau (i.c. Boschwezen) Ringyo Tyuoo Zimusyo (RTZ). The Japanese Government included the organization in the Sangyobu Department (economic affairs, June 1942 – October 1943), then into the Zoosenkyoku Department (shipping, November 1943 to mid-1945) and then under the Gunzyuseizanbu Department or War Supplies Production Department, until August 15, 1945.

After the Independence of the Republic of Indonesia on August 17, 1945, and the establishment of the State of Indonesia on August 18, 1945, the rights, obligations, responsibilities and authorities of forest management in Java and Madura by the Dutch East Indies Forestry Service q.q. Den Dienst van het Boschwezen, delegated institutionally to the Forestry Bureau of the Republic of Indonesia based on Article II of the Transitional Rules of the Constitution of the Republic of Indonesia, which reads: “All existing state bodies and regulations are still in effect immediately, as long as new ones have not been promulgated according to this constitution.”

With the ratification of MPRS Decree No. 11/MPRS/1960, as mentioned in Appendix Book I, Volume III, Paragraph 493 and paragraph 595, the forestry industry is designated as Project B. Project B is a source of income to finance projects A (Supplement to the State Gazette of the Republic of Indonesia No. 2551). At that time, the Government planned to change the status of the Forestry Bureau to a commercial State Company. The goal was for forestry to generate profits for the State treasury. Then the Government issued a Government Regulation in Lieu of Law Number 19 of 1960 concerning State Enterprises.

To actualize the change in the status of the Forestry Bureau to become a State Enterprise, the Government issued Government Regulation Number 17 to Number 30, 1961, concerning “Formation of State Forestry Companies (PERHUTANI)”. 1960 concerning State Enterprises, then each with:

● Government Regulation Number 17 of 1961; enacted and promulgated on March 29, 1961, and retroactively effective January 1, 1961; Established the General Governing Agency (BPU) of the State Forestry Company, abbreviated as “BPU Perhutani”, contained in the State Gazette of 1961 number 38, the explanation of which is included in the Supplement to the State Gazette no. 2172.

● Government Regulation No. 18 of 1961; enacted and promulgated on March 29, 1961, and retroactively effective January 1, 1961; Established the State Forestry Company of East Java, abbreviated as PN Perhutani East Java, contained in the State Gazette of 1961, number 39, the explanation is included in the Supplement to the State Gazette No. 2173.

● Government Regulation No. 19 of 1961; which was established and promulgated on March 29, 1961, and retroactively effective from January 1, 1961, the Central Java State Forestry Company was established, abbreviated as PN Perhutani Central Java, contained in the 1961 State Gazette number 40, the explanation of which was included in the Supplement to the State Gazette no. 2174.

● Government Regulation Number 35 of 1963 concerning the Transfer of Concession of Certain Forests to State Forestry Companies diserahkan pengusahaan hutan-hutan
tertentu yang ditunjuk oleh Menteri Pertanian dan Agraria kepada Perusahaan-perusahaan
Kehutanan Negara, selanjutnya disingkat ”Perhutani”.

The President Director of BPU Perhutani, Anda Ganda Hidajat, at the Forum for the Conference of Forestry Agencies from 4 to November 9, 1963, in Bogor, in his article entitled: “The Realization of Perhutani”, on page 2, wrote that: “In the implementation of Law no. 19 of 1960 concerning the Establishment of State Enterprises, BPU Perhutani was established in Jakarta based on PP No. 17 of 1961, while the first appointment of its Board of Directors was made on May 19, 1961, with a Presidential Decree R.I. No. 210/1961″. The regional PERHUTANI establishments that have realized are:

● East Java Perhutani on October 1, 1961;
● Central Java Perhutani on November 1, 1961;
● Perhutani East Kalimantan on January 1, 1962;
● Perhutani South Kalimantan on January 1, 1962;
● Central Kalimantan Perhutani on April 1, 1963”.

The Government of Indonesia established the State Forestry Public Company, abbreviated as Perum Perhutani,
based on Government Regulation No. 15 of 1972, stipulated on March 29, 1972.
With this Government Regulation Number 15 of 1972, the Perhutani of East Java State Company which was
established by Government Regulation Number 18 of 1961, and the Central Java Perhutani State Company, which
was established under Government Regulation No. 19 of 1961, were merged into and made into a production unit
of Perum Perhutani (see Article 1 paragraph (2) of Government Regulation No. 15 of 1972).

With Government Regulation No. 2/1978, the Government added production units of Perum Perhutani
with a working scope that covers the entire forest area in the Level I Region of West Java and is called Unit III Perum Perhutani.
The legal basis of Perum Perhutani is as stipulated in Government Regulation Number 15 of 1972 in conjunction with
Government Regulation Number 2 of 1978, then refined/replaced successively with Government Regulation Number 36 of 1986,
Government Regulation Number 53 of 1999, Government Regulation Number 14 of 2001, and finally Government Regulation Number 30 of 2003.

The Government issued Government Regulation of the Republic of Indonesia No. 73 of 2014 concerning the Addition of State Equity Participation of the Republic of Indonesia into the Capital of the State Forestry Public Company (Perum). On October 2, 2014, Perum Perhutani was appointed by the Government as a shareholder as the holding company for Forestry SOE Holding with subsidiaries PT Inhutani I, PT Inhutani II, PT Inhutani III, PT Inhutani IV, PT Inhutani V.

The addition of state capital participation for Perum Perhutani comes from the transfer of all state-owned shares in the company PT. Inhutani I (established based on PP No. 21/1972 in East Kalimantan), PT. Inhutani II (established based on PP No. 32/1974 in South Kalimantan), PT. Inhutani III (established based on PP No. 31/1974 in Central Kalimantan), PT. Inhutani IV (established under PP No. 22/1991 in North Sumatra) and PT. Inhutani V (established based on PP No. 23/1991 in South Sumatra).