1 DECREE OF MINISTER OF AGRICULTURE
NUMBER 106/Kpts/SR.130/2/2004 DATED February 13, 2004
REGARDING
SUBSIDIZED FERTLIZER REQUIREMENT FOR AGRICULTURE SECTOR BUDGET 2004
MINISTER OF AGRICULTURE,
Considering:
a. that in the framework of implementing National Food Security Program through increasing agriculture commodity production, it is deemed necessary to provide production facility (fertilizer) down to farmer level;
b. that role of fertilizer is imperative in increasing agriculture productivity and commodity production therefore the government shall provide fertilizer subsidy accordingly;
c. that in order to achieve the target, it is deemed necessary to stipulate subsidized fertilizer requirement for Fiscal Year 2004 under a Decree of Minister of Agriculture.
In view of:
1. Law Number 6 Year 1967 regarding Principle Law of Husbandry and Animal Health (State Gazette Year 1967 Number 10, Supplement to State Gazette Number 2824);
2. Law Number 12 Year 1992 regarding Cultivation System (State Gazette Year 1992 Number 46, Supplement to State Gazette Number 3478);
3. Law Number 8 Year 1999 regarding Consumer Protection (State Gazette Number Year 1999 Number 42, Supplement to State Gazette Number 3478);
4. Law Number 22 Year 1999 regarding Regional Government (State Gazette Number Year 1999 Number 60, Supplement to State Gazette Number 3839);
5. Law Number 25 Year 2000 regarding Government Authority and Provincial Authority as Autonomous Region (State Gazette Number Year 2000 Number 54, Supplement to State Gazette Number 3952);
6. Government Regulation Number 8 Year 2001 regarding Cultivation Fertilizer (State Gazette Number Year 2001 Number 14, Supplement to State Gazette 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 of 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 ad Decree of Minister of Agriculture Number 354/Kpts/OT.210/2003 regarding Organization and Working Procedure of Ministry of Agriculture;
11. Decree of Minister of Agriculture Number 99/Kpts/OT.210/2/2001 jis Decree of Minister of Agriculture Number 392/Kpts/OT.210/7/2001 and Decree of Minister of Agriculture Number 355/Kpts/OT.210/2003 regarding Organization Unity and Working Procedure of Ministry of Agriculture;
12. Decree of Minister of Industry and Trade Number 634/MPP/Kep/9/2002 regarding Provision and Procedure of Supervision of Goods and or Service Circulating in the Market;
14. Decree of Minister of Agriculture Number 175/Kpts/KP.150/3/2003 regarding Formation of Central Level Supervisory Team for Subsidized Fertilizer;
In View of:
Agreement Result between Government and Budget Committee of DPR-RI on October 24, 2003.
D E C I D E
Stipulate:
DECREE OF MINISTER OF AGRICULTURE REGARDING SUBSIDIZED FERTILZIER REQUIREMENT FOR AGRICULTURE SECTOR OF BUDGET YEAR 2004.
Article 1
In this Decree, the following shall mean:
1. Fertilizer is chemical substance or organism which supplies hara element needed by plant to grow either directly or indirectly.
2. Subsidized fertilizer is fertilizer whose supply and distribution is regulated by government and whose price is set in HET (Highest Retailer Price) stated at farmer level.
3. Agricultural sector is a sector related to cultivation of plant which includes Crops, Horticulture, Plantation and Animal Food Greening.
4. Plant Cultivation activity is an activity to cultivate plant on sustainable basis.
5. Farmer is an individual who operates farmland of his own or not for crop or horticulture with the size of less than 500 Ha (paddy plant, second plant in dry season, fruit) or less than 100 Ha for vegetables and requires no operation permit pursuant to the law and regulation.
6. Planter is an individual who operates plantation area of his own or not, for plantation activities with the size of not more than 25 hectares and requires no operation permit pursuant to the law and regulation.
7. Stock-farmer is an individual who operates land of his own or not, crop plant greening cultivation, requires no operation permit pursuant to the law and regulation.
8. Producer is a legal entity producing Urea, SP-36, ZA fertilizer and NPK in-country consisting of PT Pupuk Sriwijaya, PT Pupuk Kujang, PT Pupuk Kalimantan Timur, PT Pupuk Iskandar Muda and PT Petrokimia Gresik.
9. Fertilizer Distributor is a legal entity appointed by fertilizer producer to buy, store, sell and market subsidized fertilizer to final consumers through its retailers.
10. Retailer is individual or legal entity, which the nature of business is sell subsidized fertilizer directly to final consumers.
11. Supply is the process of supplying fertilizer by producer.
12. Distribution is the process of distributing fertilizer from producer level to consumers.
13. Line I is location of fertilizer warehouse at the area of domestic fertilizer plant or in the area of destination port for imported fertilizer.
14. Line II is location of fertilizer producer warehouse in Provincial capital city and Fertilizer Packing Unit (UPP) or outside of port area.
15. Line III is fertilizer distributor and or producer warehouse in Regency/Municipality area as appointed / designated by Producer.
16. Line IV is retailer warehouse location appointed / designated by Distributor.
Article 2
stock-3 Article 3
(1) Need of fertilizer to be subsidized shall be computed based on fertilizer requirement proposal of all Agricultural, Plantation and Husbandry Offices in Provincial level and consideration of fertilizer absorption capacity for the last 5 (five) to 10 (ten) years in each province.
(2) Subsidized fertilizer referred to in paragraph (1) is only Urea, SP-36, ZA and NPK with the composition of 15:15:15 supplied by fertilizer producer for agriculture covering Food Plant, Horticulture, Plantation and or Livestock Food Greening.
(3) Subsidized fertilizer referred to in paragraph (2) shall be labeled with Supplement label of "Government Subsidized Fertilizer", which is easily readable and permanent writing.
Article 4
Need of subsidized fertilizer contemplated in Article 3 for Budget Year of 2004 (January 1 to December 31, 2004) is based on the type and provincial location/region as set out in the Appendix herein.
Article 5
Provision on supply, distribution and circulation of subsidized fertilizer shall be done pursuant to the law and regulation in industry and trade area:
a. Subsidized fertilizer supply started from Line I to Line IV shall be the responsibility of fertilizer producer. b. Subsidized fertilizer supply in Line III shall be made by the appointed distributor and under the supervision
of fertilizer producer as per the region in, which it is responsible for.
c. Subsidized fertilizer supply in Line IV shall be made by authorized retailer and under the supervision of fertilizer distributor as per the region in, which it is responsible for.
Article 6
To secure the fulfillment of subsidized fertilizer requirement shall be in accordance with 6 correct principles, namely correct quantity, on time, correct type, fixed price, correct time and quality:
a. Producer shall be responsible for monitoring /supervision of fertilizer supply and distribution in each region, in which it is responsible for.
b. Fertilizer Supervision Commission in Province and Regency/Municipality shall monitor and supervise subsidized fertilizer supply and use in its region.
Article 7
(1) Fertilizer Supervision Commission in Regency/ Municipality is obliged shall serve its monitoring and supervision report in its region to the Head of Regent/Mayor.
(2) Head of Regent/Mayor shall serve monitoring and supervision report on the subsidized fertilizer to Governor.
(3) Fertilizer Supervision Commission in Province level shall serve its monitoring and supervision report in its region to Governor.
(4) Governor shall serve the monitoring and supervision report on subsidized fertilizer and report from Head of Regent/mayor to Minister of Agriculture and Minister of Industry and Trade.
(5) Central level Subsidized Fertilizer Supervision Team shall do monitoring on sampling basis, process report from Governor and prepare report materials to Minister of Agriculture and Minister of Industry and Trade.
Upon the stipulation of this Decree, then Decree of Minister of Agriculture Number 08/Kpts/TP.260/1/2003 regarding Need of Subsidized Fertilizer for Agriculture sector in Budget Year of 2003 is stated no longer be effective.
Article 9
This decree is effective as of it is stipulated and be retroactive since January 1.
Stipulated in Jakarta On February13, 2004
MINISTER OF AGRICUTURE signed.
BUNGARAN SARAGIH
COPY of this Decree is served to. 1. Coordinator Minister for Economic; 2. Minister of Industry and Trade; 3. Minister of Finance;
4. Governor in all over Indonesia;
5 APPENDIX:
DECREE OF MINISTER OF AGRICULTURE NUMBER : 106/Kpts/SR.130/2/2004
REGARDING : NEED OF SUBSIDIZED FERTILZIER FOR AGRICULTURE SECTOR OF BUDGET YEAR 2004
DATE : FEBRUARY 13 2004
NEED SUBSIDIZED FERTILIZER PLAN FOR AGRICULTURE SECTOR BUDGET YEAR 2004
(Ton) NO. SUB SEKTOR UREA SP-36 Z A N P K
1. Food Plant and Horticulture 3.358.106 595.222 456.352 400.000 2. People’s Plantation 869.076 202.400 142.613 0 3. Animal Husbandry 11.543 2.377 1.035 0
Total 4.238.724 800.000 600.000 400.000
Stipulated in Jakarta On February 13 2004
MINISTER OF AGRICULTURE, singed.
BUNGARAN SARAGIH
NEED OF SUBSIDIZED FERTILIZER PLAN FOR SUB-SECTOR FOOD PLANT AND HORTICULTURE
BY PROVINCE AND MONTHLY DISTRIBUTION BUDGET YEAR 2004
(Table 1)
NEED OF SP-36 SUBSIDIZED FERTILIZER PLAN FOR SUB-SECTOR FOOD PLANT AND HORTICULTURE
BY PROVINCE AND MONTHLY DISTRIBUTION BUDGET YEAR 2004
NEED OF NPK SUBSIDIZED FERTILIZER PLAN FOR SUB-SECTOR FOOD PLANT AND HORTICULTURE
BY PROVINCE AND MONTHLY DISTRIBUTION BUDGET YEAR 2004
(See Table 3)
NEED OF NPK SUBSIDIZED FERTILIZER PLAN FOR SUB-SECTOR FOOD PLANT AND HORTICULTURE
BY PROVINCE AND MONTHLY DISTRIBUTION BUDGET YEAR 2004
