DECREE OF MINISTER OF INDUSTRY AND TRADE NO. 306/MPP/KEP/4/2003, DATED APRIL 17, 2003
ON
THE AMANDEMENT TO DECREE OF THE MINISTER OF INDUSTRY AND TRADE NO. 70/MPP/KEP/2/2003
ON PROCUREMENT AND DISTRIBUTION OF SUBSIDIZED FERTILIZERS FOR THE AGRICULTURAL SECTOR
THE MINISTER OF INDUSTRY AND TRADE, Considering:
a. that in the framework of monitoring of the procurement of fertilizers as set forth in Decree of Minister of Trade and Industry No. 70/MPP/Kep/2/2003, especially the procurement from overseas or import, it is necessary to amend some of the provision of the said Decree of Minister of Trade and Industry No. 70/MPP/Kep/2/2003;
b. that for that purpose, need to be issued Decree of Minister of Industry and Trade. In view of:
1. Law No. 5/1999 on Prohibition of Monopoly Practice and Unfair Competition (Statute Book of 1999 No. 33, Supplement to Statute Book No. 3817);
2. Decree of Minister of Trade No. 66/Kp/III/73 on Sole Agency of Fertilizers Manufactured Overseas;
3. Joint Decree of Minister of Finance and Minister of Trade and Industry No. 527/KMK.04/2002 and No. 819/MPP/Kep/12/2002 on Administrative Order on Importation;
4. Decree of Minister of Trade and Industry No. 40/MPP/Kep/1/2003 on Importers Identification Number (API);
5. Decree of Minister of Trade and Industry No. 70/MPP/Kep/3/2003 on Procurement and Distribution of Subsidized Fertilizer for the Agricultural Sector.
DECIDES To stipulate:
THE DECREE OF MINISTER INDUSTRY AND TRADE ON THE AMENDEMENT TO DECREE OF MINISTER OF TRADE AND INDUSTRY NO. 70/MPP/KEP/2/2003 OF PROCUREMENT AND DISTRIBUTION OF SUBSIDIZED FERTILIZERS FOR THE AGRICULTURAL SECTOR.
Article 1
Several provision in Decree of Minister of Industry and Trade No. 70/MPP/Kep/2/2003 on Procurement and Distribution of Subsidized Fertilizers for Agricultural Sector are amended as follows:
“Article1 In this decree, the meaning of:
1. Subsidized Fertilizer is fertilizer, which procurement and distribution are Subsidized by the government for farmers’ needs and implemented based on government programs.
2. Non-Subsidized Fertilizer is fertilizer, which procurement and distribution are not included in the government program and is not subsidized.
3. Farmer is a person who has or who does not have land parcels and whose basic means of livelihood is to have land parcels and to use the said parcels as media to cultivate plants.
4. Producers are companies producing urea-based fertilizers, SP-36, ZA, and NPK locally, i.e. PT. Pupuk Sriwijaya, PT Pupuk Kujang, PT Pupuk Kalimantan Timur, TBK, PT. Pupuk Iskandar Muda, and PT Pupuk Petrokimia Gresik.
5. Procurement is the process of procurement of fertilizer by producer.
6. Distribution is the process of distribution of fertilizers from producer to consumer. 7. Fertilizers Registered Importer, which is hereinafter called “IT Pupuk” is the importer being holder of Importers Identification Number (API) who has been registered and has obtained certificate of appointment from the Director General for Overseas Trading.
8. Distributor is a company, which is legal and is appointed by the producers to purchase, to store, to sell, and to market subsidized fertilizers in huge number to be sold to final consumers through retailers.
9. Retailer is an individual or corporation appointed by the distributor and whose main activity is to sell directly to final consumers in small number;
10.Lini I is location of fertilizer warehouse in the area of fertilizer factory locally or in destination harbor territory for importer fertilizers.
11.Lini II is location of warehouse in the capital city of a province and fertilizer packing unit (UPP) or outside harbor area.
12.Lini III is location or warehouse of distributor and/or producer of fertilizers in the regency/mayoralty, which is appointed/designated by the producers.
13.Lini IV is location of retailer’s warehouse appointed/designed by the distributor. 14.Highest Retail Price or “HET” is the highest price of urea-based fertilizer, SP-36,
and ZA in 50-kg pack and/or 20-kg pack for NPK paid in cash by farmers to authorized retailer in Lini IV.
15.Minister is the Minister of Trade and Industry.
2. To amend the provisions of Article 6 so that it reads as follows:
1. Import of fertilizers may only be implemented by IT Pupuk, which, upon implementation of import, does not require import approval.
3. To obtain certificate of appointment as IT Pupuk as set forth in paragraph (1), the importer must file an application in writing to the Director General for Overseas Trading and must comply with the following conditions:
a. Have business permit issued by the authorized institution; b. Have Importers Identification Number (API)’
c. Have Certificate of Company Registration (TDP); d. Have Taxpayer Code Number (NPWP);
e. Have recommendation from the Director General for Chemical, Agricultural, and Forest Produce Industries (IKAHH) of Department of Trade and Industry in case of import of fertilizers to fulfill fertilizers;
f. Have experience as importer of fertilizer at least in the last two (2) years, which is evidenced by realization of import in the form of Notification on Import of Goods (PIB).
4. The certificate of appointment of IT Pupuk shall be valid for one (1) year.
5. Companies, which have obtained certificate of acknowledgment as IT Pupuk, must submit a report in writing as the format specified in Appendix I to this Decree with regard to import and distribution of fertilizers every month even trough there is no importation or distribution to the Director General for Overseas Trading, Director General for Chemical, Agricultural & Forest Produce Industries, and Director General for Local Trading of Department of Trade and Industry.
6. Certificate of IT Pupuk will be frozen if IT Pupuk does not submit the report set forth in Paragraph (5) two (2) times consecutively.
7. If, in the following month, after certificate of IT Pupuk has been frozen, the relevant company shall perform the obligation set forth in Paragraph (5). The company’s IT Pupuk certificate will be liquidated.
8. The freezing of certificate of appointment as IT Pupuk as set forth in paragraph (6) and its liquidation as set forth in Paragraph (7) will be implemented by the Director General for Overseas Trading.
9. IT Pupuk will be revoked in the event of:
a. The content written in the IT Pupuk is amended, added, and/or changed; or b. IT Pupuk is declared guilty by the court as a result of criminal acts related to
the misuse of certificate of appointment of IT Pupuk.
10.Revocation of IT Pupuk as set forth in paragraph (9) shall be implemented by the Director General for Overseas Trading;
11.The import of fertilizer prior to the stipulation of this Decree may still be implemented
12.Format of letter of appointment of IT Pupuk is as specified in Appendix II to this Decree.
3. To add a new provision being Article 15A, which reads as follows: “Article 15A
Article II
This Decree comes into full force and effect from the date of stipulation.
For public cognizance, this decree shall be announced by placing it in the State Gazette of the Republic of Indonesia.
Stipulated in Jakarta On April 17, 2003
THE MINISTER OF INDUSTRY AND TRADE sgd
