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1 DECREE OF MINISTER OF AGRICULTURE

NUMBER 107/Kpts/SR.130/2/2004 DATED 13 FEBRUARY 2004 REGARDING

THE HIGHEST RETAIL PRICE (HET) OF SUBSIDIZED FERTILIZER FOR AGRICULTURAL SECTOR OF FISCAL YEAR 2004

MINISTER OF AGRICULTURE,

Considering:

a. that in the framework of increasing output of agricultural commodity toward national food self-sufficient program through the proper use of fertilizer in line with the recommended fertilizing technology, then government stipulates a fertilizer subsidy for Fiscal Year 2004.;

b. that pursuant to Article 10 paragraph (4) Decree of Minister of Industry and Trade Number 70/MPP/Kep/2/2003 regarding Subsidized Fertilizer Supply and Distribution, the stipulation of the Highest Retailer Price (HET) of Subsidized Fertilizer shall be the authority of Minister of Agriculture;

c. that based on the matters referred to above, it is deemed necessary to stipulate the Highest Retailer Price (HET) of Subsidized Fertilizer for Fiscal Year 2004 under a Decree of Minister of Agriculture.

In View of:

1. Law Number 6 Year 1967 regarding The Principle Provision of Livestock and Animal Health (LN Year 1967 Number 10, TLN Number 2824);

2. Law Number 12 Year 1992 regarding Plan Cultivation System (LN Year 1992 Number 46, TLN Number 3478);

3. Law Number 8 Year 1999 regarding Consumer Protection (LN Year 1999 Number 42,TLN Number 3478); 4. Law Number 22 Year 1999 regarding Regional Government (LN Year 1999 Number 60,TLN Number

3839);

5. Government Regulation Number 25 Year 2000 regarding Government Authority and Provincial Authority as Autonomous Region (LN Year 2000 Number 54, TLN Number 3952);

6. Government Regulation Number 8 Year 2001 regarding Fertilizer for Planting (LN Year 2001 Number 14, TLN Number 4079);

7. Presidential Decree Number 228/M Year 2001 regarding The Gotong Royong Cabinet Formation;

8. Presidential Decree Number 102 Year 2001 regarding Position, Task, Function, Authority, Structure of Organization and Task of Ministry;

9. Presidential Decree Number 109 Year 2001 regarding Organization Unit and Task Echelon I Ministry; 10. Decree of Minister of Agriculture Number 01/Kpts/OT.210/1/2001 jis Decree of Minister of Agriculture

Number 354.1/Kpts/OT.210/6/2001 and Decree of Minister of Agriculture Number 354/Kpts/OT.210/6/ 2003 regarding Organization and Working Procedure of Ministry of Agriculture;

11. Decree of Minister of Agriculture Number 99/Kpts/OT.210/2/2001 jis Ministerial Decree of Agriculture Number 353924.1/Kpts/OT.210/7/2001 and Decree of Minister of Agriculture Number 355/Kpts/OT.210/6/ 2003 regarding Organization Unity and Working Procedure and Ministry of Agriculture;

12. Decree of Minister of Industry and Trade Number 634/MPP/Kep/9/2002 regarding Provision and Procedure of Goods and or Service Supervision Circulating in the Market;

13. Decree of Minister of Industry and Trade Number 70/MPP/Kep/2/2003 juncto Decree of Minister of Industry and Trade Number 306/MPP/Kep/4/2003 regarding Subsidized Supply and Distribution for Agriculture Sector;

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2 15. Decree of Minister of Agriculture Number 106/Kpts/SR.130/2/2004 regarding Subsidized Fertilizer Need

for Agriculture Sector of Fiscal Year 2004.

In View of:

Result of Agreement between Government and Budget Committee of DPR-RI on October 24, 2003.

DECIDE: Stipulate:

FIRST:

Stipulate the Highest Retail Price (HET) of Subsidized Fertilizer for Agriculture Sector of Fiscal Year 2004.

SECOND:

Subsidized fertilizer referred to in the FIRST dictum shall be Urea, SP-36, ZA and NPK with composition of N:P:K = 15:15:15; supplied by fertilizer producer for agriculture covering food plant, horticulture, people’s plantation, and or fodder reforesting.

THIRD:

HET referred to in the FIRST dictum shall be the highest price of Urea Fertilizer, SP-36 and ZA in 50 kg package, and in NPK fertilizer in 20 kg package, paid by farmer in cash to authorized retailers at IV Line.

FOURTH:

HET referred to in the THIRD dictum shall be stipulated as follows : a. Urea Fertilizer = Rp. 1050,- per kg;

b. SP-36 Fertilizer = Rp. 1400,- per kg; c. ZA Fertilizer = Rp. 950,- per kg; d. NPK Fertilizer = Rp. 1600,- per kh;

and shall be effective as of January 1, to December 31, 2004.

FIFTH:

Producer, distributor and retailer in selling subsidized fertilizer referred to in the SECOND dictum shall secure the availability of subsidized fertilizer at the time of it is required and sell it in accordance with HET as set forth in the FOURTH dictum.

SIXTH:

Retailer referred to in the FIFTH dictum shall put HET of Subsidized Fertilizer referred to in the FOURTH dictum on notice board easily visible and readable by buyer.

SEVENTH:

Provincial and Regency/Municipality Fertilizer Supervisory Committee shall monitor and supervise the distribution, use and implementation of Subsidized Fertilizer HET performed by producer, distributor and retailer referred to in the FIFTH dictum.

EIGHTH:

This Decree shall be effective as of the date it is stipulated and be backdated since January 1, 2004.

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3 MINISTER OF AGRICULTURE

signed by

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