PRESIDENTIAL DECREE
NO. 127/2001 DATED DECEMBER 14, 2001 ON
FIELD/TYPES OF BUSINESSES RESERVED FOR SMALL-SCALE BUSINESSES AND FIELDS/TYPES OF BUSINESSES OPENED FOR MEDIUM- OR LARGE-SCALE
BUSINESSES UNDER PARTNERSHIP SCHEME
THE PRESIDENT OF THE REPUBLIC OF INDONESIA,
Considering :
a. that small-scale business are people's economic activities as integral part of business which have a strategic position, potential and role in realizing the increasingly balanced structure of national economy and even distribution of development based on economic democracy;
b. that small-scale business need to be empowered and given business opportunities so as to be capable and on par with other economic actors in order to maximize their role in development;
c. that based on considerations as meant in letters a and b, it is necessary to stipulate fields/types of businesses reserved for small-scale businesses and fields/types of businesses opened for medium- or large-scale businesses under partnership scheme in a presidential decree;
In view of :
1. Article 4, sub-article (1) of the State Constitution of 1945 as already amended by the Third Amendment to the State Constitution of 1945;
2. Law No. 1/1967 on Foreign Investments (Statute Book of 1967 No. 1, Supplement to Statute Book No. 2818), as already amended by Law No. 11/1970 (Statute Book of 1970 No. 46, Supplement to Statute Book No. 2943);
3. Law No. 6/1968 on Domestic Investments (Statute Book of 1968 No. 33, Supplement to Statute Book No. 2853), as already amended by Law No. 12/1970 (Statute Book of 1970 No. 47, Supplement to Statute Book No. 2944);
4. Law No. 7/1992 on the Banking System (Statute Book of 1992 No. 31, Supplement to Statute Book No. 3473), as already amended by Law No. 10/1998 (Statute Book of 1998 No. 162, Supplement to Statute Book No. 3790);
5. Law No. 25/1992 on Cooperatives (Statute Book of 1992 No. 116, Supplement to Statute Book No. 3502); 6. Law No. 9/1995 on Small-scale Business (Statute Book of 1995 No. 74, Supplement to Statute Book No.
3611);
7. Law No. 5/1999 concerning Ban on Monopolistic Practices and Unfair Business Competition (Statute Book of 1999 No. 33, Supplement to Statute Book No. 3817);
8. Law No. 8/1999 on Consumers Protection (Statute Book of 1999 No. 42, Supplement to Statute Book No. 3821);
9. Law No. 22/1999 on Regional Administrations (Statute Book of 1999 No. 60, Supplement to Statute Book No. 3839);
10.Government Regulation No. 20/1994 on Ownership of Shares in Companies Established in the Framework of Foreign Investments (Statute Book of 1994 No. 28, Supplement to Statute Book No. 3552);
11.Government Regulation No. 44/1997 on Partnership (Statute Book of 1997 No. 91, Supplement to Statute Book No. 3718);
12.Government Regulation No. 32/1998 on the Fostering and Development of Small-scale Business (Statute Book of 1998 No. 46, Supplement to Statute Book No. 3743);
14.Presidential Decree No. 33/1981 on the Investment Coordinating Board as already amended several times and the latest by Presidential Decree No. 120/1999;
15.Presidential Decree No. 97/1993 on Investment Procedures as already amended several times and the latest by Presidential Decree No.117/1999.
DECIDES :
To stipulate :
THE PRESIDENTIAL DECREE ON FIELDS/TYPES OF BUSINESSES RESERVED FOR SMALL-SCALE BUSINESSES AND FIELDS/TYPES OF BUSINEESES OPENED FOR MEDIUM- OR LARGE- SCALE BUSINESSES UNDER PARTNERSHIP SCHEME.
Article 1
In this presidential decree, what is meant by :
1. Small-scale business is a people's economic activity of the small-scale category and meeting criteria as meant in Law No. 9/1995 on Small-scale Businesses.
2. Fields/types of businesses reserved for small-scale businesses are the fields/types of businesses designated to small-scale businesses that need to be protected, empowered and given business opportunities so as to be capable and on par with other economic actors in order to maximize their role in development.
3. Partnership is cooperation between small-scale businesses and medium- or large-scale businesses accompanied by the fostering and development by the medium- or large-scale businesses by observing the principle of mutually necessary and mutually strengthening as well as mutually beneficial.
Article 2
(1) The fields/types of businesses reserved for small-scale businesses are as mentioned in Attachment I to this presidential decree.
(2) The fields/types of businesses opened for medium- and large-scale businesses under partnership scheme are as mentioned in Attachment II to this presidential decree.
(3) The fields/types of businesses as meant in sub-article (2) shall be executed by promoting partnership with small-scale businesses in various forms of partnership through the scheme of share participation, plasma core or sub-contractor or franchise or general trading or agency and/or other forms as well as being executed on the basis of written agreement.
(4) The fields/types of businesses as meant in sub-article (2) can also be executed by medium- or large-scale businesses established in the framework of foreign investments, except fields/types of businesses closed for foreign investments.
(5) The stipulation of policies and the fields/types of businesses opened with the requirement of partnership are to be reviewed periodically by a decision of the Head of the Investment Coordinating Board after coordinating technical ministries and the Office of the State Minister for Cooperatives and Small- and Medium-scale Businesses.
Article 3
Article 4
Licensing, supervision and control over the operation of fields of businesses as mentioned in Attachments I and II to this presidential decree in the framework of domestic investments and foreign investments are executed by government institutions at national and regional levels which have authority in the field of investment in accordance with their respective scopes of authority.
Article 5
(1) Technical ministers stipulate sectoral technical policies related to the development of small-scale businesses integratedly in the field of both production and processing, marketing, human resources, capital and technology in accordance with the fields/types of businesses as mentioned in Attachment I and II to this presidential decree.
(2) The operation of fostering and development of small enterprises is executed by related regional institutions, business entities and non-governmental organizations (NGO).
Article 6
Funding source of small-scale businesses in the framework of the development of the fields/types of businesses as mentioned in Attachment I and II to this presidential decree can use funding sources coming from banks and other financing institutions or from funding sources specifically stipulated by the government.
Article 7
Further provisions needed for the enforcement of this presidential decree are to be regulated jointly or separately by related technical ministries in accordance with their respective fields and tasks.
Article 8
With the enforcement of this presidential decree, Presidential Decree No. 99/1998 on Fields/Types of Businesses Reserved for Small-scale Businesses and Fields/Types of Businesses Opened for Medium- and Large-scale Businesses under Partnership Scheme is declared ineffective.
Article 9
This presidential decree starts to be effective on the date of promulgation.
For public cognizance, this presidential decree shall be promulgated by placing it in the Statute Book of the Republic of Indonesia.
Stipulated in Jakarta On December 14, 2001
THE PRESIDENT OF THE REPUBLIC OF INDONESIA, sgd.
MEGAWATI SOEKARNOPUTRI
THE STATE SECRETARY sgd.
BAMBANG KESOWO
ATTACHMENT I
FIELDS/TYPES OF BUSINESSES RESERVED FOR SMALL-SCALE BUSINESSES
AGRICULTURAL SECTOR
1. Breeding of exotic chicken
MARINE AND FISHERY SECTOR
2. Fishing by using vessels of below 30 GT/90 PK, carried out on waters of 12 sea miles 3. Fish cultivation, covering fish hatchery and growing in land water, swamp water and sea 4. Catching of cold-water decorative fish
FORESTRY
5. Forestry
1) Exploitation of honey bees
2) Exploitation of forests of sugar palm, sago palm, rattan, candle nut tree, bamboo and sweet tree (kayu manis)
3) Exploitation of swallow in nature
4) Exploitation of people's forests of tamarind (collection and processing of tamarind seeds) 5) Exploitation of forests of charcoal production
6) Exploitation of forests producing latex
7) Exploitation of forests producing materials for volatile oil (pine oil/clove oil turpentine, tengkawang (dipterocarpaceae) oil, maleleuca oil, cananga oil, fragrant root oil and others).
ENERGY AND MINERAL RESOURCE SECTOR
6. Smallholder mining
INDUSTRIAL AND TRADING SECTOR
7. The industry of processed food and beverage preserved through souring, salting, sweetening, smoking, drying, boiling, frying and fermentation in traditional manner
8. The industry of the perfecting of yarn made of natural or artificial yarn into the yarn of motifs/dyeing, string, by using equipment operated manually
9. The industry of textile and textile products covering weaving, knitting, batik making and embroidery which is characteristically done by using non-machine weaving equipment (ATBM) or equipment operated manually including batik, hat, Muslim hat and the like
10.The processing of produces of forests and plantation of non-food category :
1) home/construction materials : bamboo, thatch, palm, shingle roof, charcoal and fiber 2) industrial materials : latex, wood skin, natural silk, gambier
11.The industry of hand equipment processed manually or semi-mechanically for carpenter and cutting
12.The industry of hand equipment for agriculture needed for land preparing, production process, harvesting, post harvesting and processing except mattock and scoop
13.The industry of products made of clay both glazed and not glazed for household purposes
15.The industry of handcrafts enriched with the treasury of regional cultures and artistic values using natural or imitated raw materials
16.Trading with small scale and informal businesses.
TRANSPORTATION SECTOR
17.Rural land transportation, river, lake and ferry transportation by using vessels of 30 GT.
TELECOMMUNICATIONS SECTOR
18.Telecommunication services covering telecommunication outlets, internet outlets and cable installation at houses and buildings.
HEALTH SECTOR
19.Medicare profession services/medical services/pharmaceutical services : 1) Individual practice of medicians
2) Group practice of medicians 3) Facilities of basic health services
4) Centers/buildings/stations of health researches 5) Drug stores, practice of pharmacist profession 6) Child and mother clinics
7) Practice of traditional medical services (acupuncture, reflection massage and traditional massage centers)
8) Services in trading drugs and foods : a) Drugs shops
b) Retailers of traditional medicines, medical herbs, medical herb outlets/shops c) Collectors of simplisia.
THE PRESIDENT OF THE REPUBLIC OF INDONESIA, sgd.
ATTACHMENT II
FIELDS/TYPES OF BUSINESSES OPENED FOR MEDIUM- OR LARGE-SCALE BUSINESSES UNDER PARTNERSHIP SCHEME
AGRICULTURE SECTOR
1. Tubers-related agricultural businesses
FISHERY SECTOR
2. Cultivation of fish, covering the growing of white kakap fish, kerapu, pearl, milkfish, shrimp, fresh water turtle, blue dye, sidat and cow frog.
FORESTRY SECTOR
3. Exploitation of silkworm and exploitation of industrial forests
ENERGY AND MINERAL RESOURCE SECTOR
4. Small-scale mining
INDUSTRIAL AND TRADING SECTOR
5. Powder milk and sweet condensed milk processing industry, industry of processed foods made from seeds, tubes, sago, melinjo (gnetum gnemon) and copra
6. Batik printing industry
7. The processing industry of raw rattan and finished leather products
8. The industry of goods made of clay for construction materials and the industry of goods made of lime 9. The industry of silver handicrafts
10.The industry of wood vessels for marine tourism and for fishing
11.The industry of agriculture machinery using medium technology such as rice huller, corn huller and hand tractor
12.The industry of hand water pump, bike equipment, electricity equipment (various kinds of clog, anchor, track anchor) and other components and the home industry of drinking water meter
13.Retail trade of large scale and other services covering modern market such as mall, department store, hyper market, shopping center and alike as well as the service of restaurant at tourist zones and or zones integrated to hotel business.
TOURISM SECTOR
14.Tourism industry covers :
1) Tourism service business : among others travel agents, convention service, incentive travels, exhibition, tourist consulting service, tourist information service
3) Tourism object service business : namely cultural tourism, special interest tourism and natural tourism requiring special expertise and skills.
TRANSPORTATION SECTOR
15.Taxi transportation business, ship loading and unloading business at seaports, and business of expedition of the freights of sea vessels, business of shipping of small size and storage.
MANPOWER SECTOR
16.Occupational courses cover : various techniques, trading, languages, tourism, management, information technology, arts and agriculture.
THE PRESIDENT OF THE REPUBLIC OF INDONESIA, sgd.
