Regulation of the Minister of Agriculture No. 26/Permentan/OT.140/2/2007 on licensing guidance for plantation business

2A LICENSING GUIDANCE FOR PLANTATION BUSINESS (Regulation of the Minister of Agriculture No. 26jPermentanjOT.1401,2/2007 dated February 28, 2007) BY GRACE OF GODTHE ALMIGHTY THE MINISTER OF AGRICUb.TURE, Considering: a. that Ucensing Guidance for Plantation Business had been stipulated in Decree of the Minister of Agricul ture No. 357/Kpts/HK.350/5/2002; b. that following business developments in the planta tion sector and issuance of Law regarding Planta tion, Decree of the Minister of Agriculture No. 357/ Kpts/HK.350 /5/2002 Is no longer suitable; c. that based on the above mentioned matters and in order to follow up the provision in Article 10 para ~raph (1), Article 17 paragraph (3), Article 17 para graph (7), and Article 22 paragraph (3) of Law No. 18/2004 on Plantation, it's deemed necessary to stipu late a regulation of the Minister of Agriculture on Licensing GUidance for Plantation Business; In view of: 1. Law No.5 Year 1960 on Agrarian Basic Principle Regulation (Statute Book of 1960 Nomor 104, Supple ment to Statute Book NO. 2043); 2. Law No.5 Year 1984 on Industry (Statute Book of 1984 Nomor 22, Supplement to Statute Book No. 3274); 3. Law No. 23 Year 1997 on Environmental Manage ment (Statute Book of 1997 Nomor 68, Supplement to Statute Book No. 3699); 4. Law No. 18 Year 2004 on Plantation (Statute Book of 2004 Nomor 85, Supplement to Statute Book No. 4411); 5. Law No. 32 Year 2004 on Regional Administration (Statute Book of 2004 Nomor 60, Supplement to Stat ute Book No. 3839); Business News 7494/4-4-2007 6. law No. 11 Year 2006 on Aceh Administration (Stat ute Book of 2006 Nomor 62, Supplement to Statute Book No. 4633); 7. law No. 21 Year 2006 Special AutDnomy for Papua Province (Statute Book of 2001 Nomor 135, Supple ment to Statute Book No. 4151); 8. Government Regulation No. 17 Year 1986 on Au thority to Regulate, Foster and Develop Industries (Statute Bookof 1986 Nomor 23, Supplement to Stat ute Book No. 3330); 9. Government Regulation No. 40 Year 1996 on Right to Use Land for Business Purpoase, Right to Use Land for Erecting Building and Land Management Title (Statute Book of 1996 Nomor 58, Supplement to Stat ute BookNo. 3643); 10.Government Regulation No. 27 Year 1999 on Environmenta Impact Analysis (Statute Book of 59 No, Supplement to Statute BookNo. 3838); l1.Government Regulation No. 25 Year 2000 on Au thority of the the Government and Authority of Pro vince as Autonomous Regions (Statute Book of 2000 Nomor 54, Supplement to Statute Book No. 3952); 12..Government Regulation No. 79 Year 2.005 on Gui~ dance for Fostering and Supervising Regional Admi nistration (Statute Book of 2005 Nomor 165, Supple ment to Statute Book No. 4593); 13.Presidential Decree No. 187/M Year 2004 on the Establishment of the United Indonesia Cabinet; 14.Government Regulation No.9 Year 2005 regarding Status, Tasks, Functions, Organizational Structures and Working Arrangements of State Ministries jo. Presidential Regulation No. 62 Year 2005; 15.PresidEll1tlal Regulation No. 10 Year 2005 on First-Eche lon Organizational Units and Tasks of State Ministries; 16. Presidentlal 16.PreSldentlal Regulation No.5 Year 2006 on National Energy Policy; 17.Regulation of .tbe Minister of Agriculture No. 299/ KPTSjOT.I40j 7/2005 on the Organization and Work ing Arrangement of the Ministy of Agricullure jo. Regulation of the Minister of Agriculture No. 11/ Permentan/OT.I40 /2/2007; IS.Regulation of the Minister of Agriculture No. 341/ Kpts/OT.140/ 9/2005 on Completeness of Org~niza­ tion and Working Arrangement of the Ministry of Agricuture jo. Regulation of the Minister of Agricul ture 12/Permentan/OT.140/2/2007; 19.Decree of the Minister of Agriculture No. 511/Kptsj PD.310/9/2006 on Kinds of Plants Fostered by the Directorate General of Plantation, Directorate Ge neral of Food Crop and Directorate of Horticulture; Observing: Presidential Instruction No. 1 Year 2006 on Provision and Utilization of Bid-fuel as alternative fuel; DECIDES: To stipulate: REGULATION OFTIiE MINISTER OF AGRICULTURE ON LICENSING GUIDANCE FOR PLANTATION BUSINESS. CHAPTER I GENERAL PROVISION Article I Referred to In this regulation as: 1. Plantation shall be all activities CUltivating certain plants on land and/or other growth media in suitable ecosystem, proceSsing and marketing goods and ser vices resulting from the plants with the support of science and technology, capital as well as manage ment to realize welfare for plantation business com munit!eS and the people. 2. Certain Plants shall be commodities of plants with the fostering resting on. the Directorate General of Plantation. Business News 7494/4-4-2007 3A 3. Plantation susmess shall be a business producing plantation products and/or services. 4. Cultivation of Plantation Plants shalt be a series of activities to cultivate plantation plants, covering pre planting, planting, maintenance and harvesting as well as sorting, including changes in kinds of plants and diversification of plants. 5. Plantation product manufacturing shall be a series ·oftreatment and processing activities applied to plan tation products with a view of obtaining higher edded value and extending durability. 6. Plantation business communities shall be plantations and plantation companies managing plantation busi ness. 7. Planters shall be individual Indonesian citizens un dertaking plantation businesswith businessscale not reaching specified scale. 8. Plantation Companies shall be indiVidual Indonesian citizens or statutory bodies established on the basis of the Indonesian Law and domiciled in Indonesia, which manage plantation business in a specifted scale. 9. Specified Scale shaH be a plantation business scale based on size of business area, kind of plantS, tech nology, manpower, capital and/or factory capadty required for having business license. IO.Plantation Business License (IUP) shall be a written license from the authorized official and which must be owned by companies undertaking cultivation busi ness of plantation and integrated with plantation product manufacturing. 11.Plantation Business License for Cultivation (IUP-B) shall be a written license from the authorized official and compulsorily owned by companies undertaking cultivation business of plantation. 12.PJ~ntlJtion Business Ucense for Processing (IUP-P) shall be a written from the authorized official and compulsorily compulsorily owned by compenies underteklnq plan tation product manufacturing. 13.Plantantion Business Registry Certificate (STD-B) shall be a certificate issued by regents/mayors to busi ness communities venturing in the plantation culti vating business withthe size of land not less than 25 (twenty) five hectares. 14.Plantation Product Manufacture Registry Certificate (STO~P) shall be a certificate issued by regents/ma yors to plantation product manufacturers with the capacity below the minimal limit. 1S.Performance of Plantation Company shall be evalua tion of successof plantation companies based on as pects of management, plantation cultivation, process ing and marketing of plantation results, social economy and environment in a specified period. 16.Plantation Partnership shall be mutually beneficia, respecting, responsible, strengthening and inter-de pendence relations between plantation companies and planters, employees and communities around the plantation. Article 2 (1)The regulation shall be designed as guidance for pro viding licensing service and undertaking plantation business. (2)The scope of thiS regulation shall cover: a. kind and licensing of plantation business; b. reauirements and procedures for applying for plan tation business license; c. partnership; d. change in size of land, kind of plant and/or change in processi'!.9 capcity as well as business diversi fication; e. fostering and supervision; and f. administrative sanction. CHAPTER II KIND AND UCENSING OFPLANTATION BUSINESS Article 3 (1) Plantation businesses shall consist of cultivation busl Business News 7494/4-4-2007 4A ness of plantation plants and plantation product manufacture. (2)The plantation businesses as meant in paragraph (1) can be executed by plantation business communities throughout Indonesia by observing macro plantation development planning. Article 4 Foreign statutory bodies or individual foreign citizens undertaking plantation businessesshall cooper ate with domestic plantation business communities by establishing Indonesian statutory bodies and established in rnoonesia. Article 5 (1) The cultivation business of plantation plants as meant in Article 3 paragraph (1) with the size of land less than 25 (twenty five) hectares shall be registered by regents/mayors. (2)Registration of the cultivation business as meant in paragraph (1) shall cover, among others, informa tion, identity, domicile of owner, size of area, kind of plant, origin of seed, production rate and location of plantation. (3) Regents/Mayor shall issue Plantation Cultivation Busi ness Certificate (STD-B) to the registered cultivation businesses of plantation plants as meant in para graph (1). Article 6 (l)Cultivation businesses of plantation plants as meant Article 3 paragraph (1) with the sizeof land 25 (twenty five) hectares or more shalf have license. (2)The license as meant in paragraph (1) shall be is sued to plantation companies. Article 7 (l)The plantation product manufacturing business as meant Article 3 paragraph (1), haVing capacity be low the minimal limit as contained in Attachhment 1 to this regulation shall be registered by Regents/ Mayor. (2) Registration .....• (2)Registration of the plantation product manufactur ing business as meant in paragraph (1) shall cover, among others, information about identity and dornl cile of owner, location of processing industry, kind of products becoming raw material, production capac ity, kind of production and market destination. (3) Regents/Mayors shall issue Plantation Product Manu facturing Registration Certificate (STD-P) to the reg istered plantation product manufacturing businessas meant in paragraph (1). Article 8 (l)The plantation product manufacturing businessesas meant in Article 3 paragraph (1), havlnq capacity the same or exceeding the lowest capacity of the product processing unit as meant in Article 7 para graph (1) shall have lrcense, (2)The license as meant in paragraph (1) shall be given to plantation companies. Article 9, (1)The cultivation business of plantation having a size of 25 (twenty five) hectares or over as meant in Ar ticle 6 and having plantation processing unit with a capacity the same or exceeding the lowest capacity as meant ln Article 8 paragraph (1) shall have Plan tation Business License. (2)The cultivation business of plantation plant with a size of 2S (twenty five) hectares or over up to the limit as contained in Attachment 2 to this regulation and not having plantation product processing unit up to the lowest capacity as meant in in Article 8 paragraph (1), shall have Plantation Business License for Cultivation (IUP-B). (3)Plantation product manufacturing business with a capacity the same or exceeding the lowest capacity as meant in Article 7 paragraph (1), shall have Plan tation Business License for Processing (!UP-P). Article 10 In order to obtain IUP-P as meant in Article 9 paragraph (3), palm oil manufacturing businesses shall Business News 7494/4-4-2007 SA meet at least 20% (twenty percent) of the need for raw materials from plantations that they manage directly. Article 11 (l)Plantation companies having IUP or IUP-B shall build plantation for surrounding communities as wide as 20% (twenty percent) of the total size of plantation managed by the companies at the minimum. (2) Building of plantations for the communities as meant in paragraph (1) can be realized through, among others credit, grant or production sharing scheme. (3)Building of plantations for the communities as meant in paragraph (l)shall be realized simultaneously with the buildinq of plantations managed by companies. (4)The plan for building plantations for the communi ties as meant in paragraph (1) shall be acknowledged by Regents/Mayors. Article 12 (l)IUP as meant in Article 9 paragraph (1), for a com pany shall be given with the limit of maximum size based on kinds of the commodities as contained in Attachment 3 to this regulation. (2)The limit of maximum size as meant in paragraph (1) shall not apply to: a. plantation companies wherein Plantation Business Cooperative is majority shareholder; b. plantation companies whose shares are owned mostly or wholly by the state, be it the central, provincial or regental/municipal government; or c. plantation companies whose shares are mostly owned by communities in the framework of go ing public. (3)The limit of size of plantation cultivation business area in Papua Province shall be twice of the limit as meant in paragraph (1) at the maximum. Article 13 (l)IUP, IUP-B or IUP-P as meant in Article 9 with the location of cultivaton area or source of raw material .in a regental/municipal territory shall be issued by regents/mayors. (2) Regents ..... (2)Regents/rnayors in issuing IUP, IUP-B or IUP-P as meant in paragraph (1) shall observe provincial macro plantation-development plan. (3)IUP, IUP-B or IUP-P as meant in Article 9 with the location of cultivation area and/or source of raw ma terials in inter-regental/municipal territory shall be issued by governors by observing recommendations from the regents/mayors in connection with regental! municipal layout plant. Article 14 IUP, IUP-B and IUP-P as meant in Article 9 shall be valid as long as the companies still undertake their activities in accordance with the technical standards and. provisions in force. CHAPTER III REQUIREMENTS AND PROCEDURES FOR APPLYING fOR PLANTATION BUSINESS UCENSE Article 15 In order to obtain IUP-B as meant in Article 9, plantation companies shall submit application in writing to regents/mayor or regents in accordance with the re spective locations of area as meant in Article 13, by enclosing the following documents: a. Deed of establishment of company and the latest amendment; b. Taxpayer Code Number; c. Certificate of domicile ; d. Recommendation about conformance to regental{ municipal layout plant from regents/mayors (in the case of IUP-B being issued by governors); e. Recommendation about conformance to provincial macro piontetion development plan from governors (in the case of IUP-B being issued by regents/ma yors); f. Location permit from regents/mayors, accompanied by site map of the would-be location with scale 1 : 100.000 or 1 : 50.000; Business News 7494/4-4-2007 6A g. Technical considerations abOut the availability of land from forestry institution (in the case of the area re·· suiting from forest area); h. Action Plan of plantation development; i. Results of Environmental Impact Analysis (AMDAL) or Environmental Management Program (UKl) and Environmental Monitoring Program (UPL) in accor dance with legislation in foirce; j. Commitment to having facilities, Infrastructure and sys tem to control organisms destructive to plants (OPT); k. Commitment to having facilities infrastructure and systems to open land without burning as well as con trol fire; J. Commitment to bUilding plantations for communi ties in accordance with the provision in Article 11, accompanied by action plan; and m. Commitment to prompting partnership: Article 16 (1)In order to obtain IUP-P as meant in Article 9, plan tation companies shall submit application in writing to regents/mayors or governors in accordance with location of the area as meant in Article 13 by enclos ing the following requirements: a. Deed of establishment of company and the latest emendrnent; b. Taxpayer Code Number; c. Certificate of Domicile; d. Recommendation about conformance to regental! municipal layout plant from regents/mayors, in the case of IUP-P being issued by governors; e. Recommendation about conformance to provin cial macro plantation plan from governors, in the case of IUP-P being issued by Regents/Mayors; f. Location permit from regents/mayors, accompa nied by site map of would-be location with a scale 1 : 100,000 or 1 : 50,000; g. Recommendation about location from regional governments overseeing location of processing unit; h. Guarantee h. Guarantee for supply of raw materials, acknowl edged by regents/mayors; i. Action Plan for building plantation production pro cessing unit; j. Results of Environmental Impact Analysis(AMDAL) Or Environmental Management Program (UKL) and Environmental Monitoring Program (UPL) in ac cordance with legislation in force; and k. Commitment to promoting partnership. (2)ln the case of palm oil processing industry, besides fulfilling the requirements as meant in paragraph (1), technical consideration about the availability of land from forestry Institution (in the case of plant cultiva tion area resulting from forest area) and action plan for cultivation of plantation plants shall be available. Article 17 In order to secure !Up as meant in Article 9, plantation companies shall submit application in writing to regents/mayors or governors in accordance with lo cation of areas as meant in Article 13, accompanied by the following requirements: a. Deed of establishment of company and the latest amendment; b. Taxpayer Code Number; c. Certificate ofDomicile; d. Recommendation about conformance to regental/ mun;c;pallayour plan from regents/mayors, in the case of !UP being issued by governors; e. Recommendation about conformance to provincial macro plantation plan from governors, in the case of !Up being issued by regents/mayors; f. Location permit from regents/mayors, accompanied by site map of would-be location in a scale of 1 : 100,000 or 1 : 50,000; g. Technicalconsideration about availability of land.from forestry institution (in the case of area resulting from forest area); Business News 7494/4-4-2007 7A h. Guar-anree for supply of raw materials, acknowledged by regents/mayors; i. Action Plan for development of plantation and plan tation product processing unit; j. Results of Environmental Impact Analysis (AMDAL) or Environmental Management Program (UKL) and Environmental Mon/torin Program (UPL) in accor dance with legislation in force; k, Statement that the company has not controlled land exceeding the limit of maximum size; I. Pernyataan kesanggupan memiliki sarana, prasarana dan sistem untuk melakukan pengendalian organisme pengganggu tumbuhan (OPT); m. Commitment to haVing facilities, infrastructure and system to open land Without burning as well as con trol fires; n. Commitment and action plan for building plantation for communities in accordance with the provision in Article Article 11; and o. Partnership commitment and action plan. Article 18 In the case of application for license of busi ness using plants resulting from genetic engineering, besides fulfilling the requirements as meant in Article 15, Article 16, or Article 17, copy of recommendation about biological safety shall be enclosed. Article 19 (l)Regents/Mayors or governors in not later than 30. (thirty) working days as from the date of receipt of the application as meant in Article 15, Article 16, or Article 17 shall give answer whether the application is postponed, denied or accepted. (2) In the case ot regents/mayors not yet giving answer in tile period of 30 (thirty) working days as meant in paragraph (I), the application strall be deemed al ready complete. (3) IUP ..... (3)IUP, IUp·B or IUP-P shall be issued to the received application as meant in paragraph (1) or the appli cation deemed complete as meant in (2). Article 20· (l)The application as meant in Article 19 paragraph (1) shall be postponed if the event that shortage of re quirements must be fulfilled after the document is examined. (2)The postponement as meant in paragraph (1) shall be notified in writing to applicants, accompanied by reasons for postponlnq, (3)In the case of applicants being not yet able to com plete the shortage of requirement in not later than 30 (thirty) working days as from the date of receipt ot notification about postponement, the application shall be deemed withdrawn again.· Article 21 (l)Theapplication as meant in Article 19 paragraph (1) shall be denied in the case of the requirements turn ing out to be untrue, business contravening public order and/or macro plantation development plan af ter the documents are examined. (2)The rejection as meant in paragraph (1) shall be notified in writing to applicants, accompanied by rea sons for rejection. CHAPTER IV PARTNERSHIP Article 22 (1)The partnership (:IS meant in Article 15 letter m, Ar ticle 16 letter k, and Article 17 letter 0 can be real ized through processing partnership and/or business partnership. (2)T1le partnership as meant in paragraph (1) shall be basedon prindples of benefit and sustainability which is mutually beneficial, respecting, responsible and strengthening. Business News 7494/4-4-2007 SA (3)The partnership as meant in paragraph (1) shall be done to empower and increase added value for plant ers, employees and/or communities around planta tion as well as guarantee sustainability of plantation business. Article 23 (l)The processing partnership as meant in Article Ar ticle 22 paragraph (1) shall be done to guarantee availability of raw materials, create a reasonable market price and realize an increase in added value for planters as part of efforts to empower planters. (2)The processing partnership as meant in paragraph (1) shall be done in writing in the form of an agree ment containing rights and obligations, businessfos tering and development, funding, period and settle ment of rli<;plltl"<;, which is signed by both parties and acknowledged by regents/mayors. (3)The period of the processing partnership agreement, as meant in paragraph (2) shall be 3 (three) years at the minimum. Article 24 (1) The business partnership as meant in Article 22 para graph (1) shall be done by company and planters and/or communities around plantation. (2)The business partnership as meant in paragraph (1) shall be done in writing in the form of an agreement containing rights and obligations, business fostering and development, funding, period and settlement of disputes, which is signed by both parties and ac knowledged by regents/mayors. (3)The period of the processing partnership agreement as meant in paragraph (2) shall be 3 (three) years at the minimum. Article 25 The business partnership as meant in Article 24 paragraph (1) call be realized through the follOWing mo dels: a. provision ..... a. provision of production facility; b. production cooperatIon; c. processing and marketing; d. transporsatlon: e. operational cooperation; f. share ownership; and/or g. cooperation in provision of other supporting service. CHAPTER V CHANGE IN SIZE OF LAND, KIND OF PLANT AND/OR PROCESSING CAPACITY AS WELL AS BUSINESS DIVERSIFICATION Article 26 (1) Plantation companies already securing license and planning to expand their land shall secure approval from the licensor as meant in Article 13. (2)In order to obtain the approval of land expansion as meant in paragraph (I), applicants shall submit ap plication in writing to the licensor as meant in Article 13, accompanied by the requirements as meant in Article 15 and Article 17, as well as report on physi cal and financial progress of plantation companies. (3)The approval of land expansion as meant in para graph (1) shall be given to plantation companies having evaluation class 1 or 2. (4) Regents/mayors or governors in giving the approval of land expansion as meant in (1) shall refer to macro plantation development plan. Article 27 (l)Plantation companies already securing license and planning to change kind of plant shall secure approval from the licensor as meant in Article 13. (2)ln order to secure the approval as meant in para graph (1), applicants shall submit application in writ ing to the licensor as meant in Article 13, by endos Ing the following requirements: a. IUP-B or IUP; b. Deed of establishment of company and the latest amendment; Rusine!:!: New!: 7494/4-4-2007 9A c. Recommendation from service in charge of plan tatlon affairs in province or regency/cily; and d. Action plan (proposal) regarding change in kind of plant. (3) Regents/mayors or governors in giving the approval of change in kind of plant as meant in paragraph (1) shall refer to macro plantation development plan. Article 28 (1) Plantation companies already securing licenseto pro cess product and planning to add capacity shall se cure approval from the licensor as meant in Article 13. (2)The approval as meant in paragraph (1) shall be needed in the case of the addition to capacity ex ceeding 30% (thirty percent) of the permitted ca pacity. (3)In order to obtain approval of addition to the capac ity as meant in paragraph (1), applicants shall sub mit application in writing to the licensor as meant in Article 13, accompanied by the requirements as meant in Article 16 and report on physical and finan cial progress of plantation businesses. (4) Regents/mayors or governors in giving the approval of addition to the capacity as menat in paragraph (1) shall refer to macro plantation development plan. Article 29 (l)Plantation companies already securing license and planning to diversify business shall secure approval from the licensor as meant in Article 13. (2)ln order to secure approval of business diversifica tion as meant in paragraph (1), applicants shall sub mit application in writing to the licensor as meant in Article 13, accompanied by the follOWing require ments: a. IUP-B or lUP; b.. Deed of establishment of company and the latest amendment; c. Recommendation . c. Recommendation from service in chargeof plan tation affairs in province or regency/city; d. Action plan (proposal) regarding kind of plant; and e. Document of support to business diversification from the institution concerned. (3)Regents/mayors or governors in giving the approval of business diversification as meant in paragraph (1) shall refer to macro plantation development plan. Article 30 (l)Regents/mayors or governors, in not later that 30 (thirty) working days as from the date of receipt of the application as meant in Article 26, Article 27, Article 28, or Article 29 Shllilgive answer whether the application is postponed, denied or accepted. (2)In the case of in the period of 30 (thirty) working days. as meant in (1) Regents/mayors or governors not makinganswerto accept, postponeor deny, the application as meant in paragraph (1) shall be deemed already complete anmd approval of addi tion to sizeof land, change in kind of plant, addition to processing capacity or business diversification shall be issued. (3)Approval of addition to size of land plot, change in kindof plant, addition to processing capacityor busi ness diversification to the accepted application as meant in paragraph (1) or application deemed corn plete as meant in paragraph (2). Article 31 (l)ln the case of the application as meant in Article 30 paragraph (1) stillcontaining shotrcomings of require .mentsafter the document is examined, the applica tion shall be postponed. (2)The postponement as meant in paragraph (1) shall be notified in writing to applicants, accompanied by reasons for postponmq. (3)ln the case of the applicants being not yet able to Business News 7494/4-4-2007 lOA complete the shortcomings of requirements in not later than 30 (thirty) working days as from the date of receipt of application as meant in paragraph (2), the application Shall be deemed withdrawn again. Article 32 (l)The·application as meant in Article 30 paragraph (1) shall be denied in the case of requirements turning out to be untrue, the would-be executed business contravening public order and/or macro plantation development plan after the documents are exam ined. (2)The rejection as meant in paragraph (1) shall be notified in writing to applicants, accompanied by rea son for rejection. CHAPTER VI FOSTERING AND SUPERVISION Article 33 (l)Copy of the license issued by governorsas meant in Article 13 shall be made available to Minister and Regents/mayors in the said provinces. (2)Copy of the license issued by Regents/mayors as meant in Article 13 shall be made availableto minis ter and governor of-the said province. Article 34 Plantation companies already securing IUP, IUP-Bor IUP-Pas meant in Article 13, shall be obliged to: a. settle landtitle In not later than 2 (two) yearsasfrom the date of issuance of IUP-B, IUP-P, or IUP-P; b. realizedevelopment of plantation and/or processing unit in accordance with feasibility study, technical standardsand provisions in force; c. havefacilities, infrastructureandsystem to openland without burning as well as control fire; d. open land without burning and manage natural re sources eternally; e. have ....• e. have facilities, infrastructure and system to control pest destructive to plant (OPT); f. apply Environmental Impact Analysis (AMDAL), or Environmental Management Program (UKL) and En vironmental Monitoring Program (UPL) in accordance with legislalion in force; g. promote and empower local communities/coopera tives; as well as h. report developments of plantation business to gov ernors or Regents/mayors in accordance with the scopes of athority as meant in Article 13 periodi cally, every 6 (six) months. Article 35 Plantation companies undertaking the business diversification as meant in Article 29. shall guarantee the continuity of care business, perserve environment conservation, micro-organism and prevent organism de structive to plants from contaminating. Article 36 (l)Fostering and supervision over plantation business shall be done by the provincial and regental/mu nicipal governments in accordance with their respec tive scopes of authority. (2)ln the framework of the fostering and supervision as meant in paragraph (1), periodical evaluation . shall be based an the report an developments of plantation business as meant in Article 34 letter h. Article 37 (1)ln the case of plantation companies already secur ing IUP, IUP-B or IUP-Pas meant in Article 13, evalu ation and fostering of the realization of develop ment of plantations and/or plantation producv manufacturing,industry shall be done every year at the minimum. (2)The evaluation and fostering as meant in paragraph (1) shall be based on action plan for development Business News 7494/4-4-2007 llA of plantation and/or plantation product processing industry, which is submitted upon applying for plan tation business license. (3)ln the case of plantation and/or plantation product processing industry being already built, evaluation and fostering shall be periodic, every 3 (three) years. (4)Evaluation and fostering of realization of develop ment Of plantation and/or plantation product pro cessing industry as meant in paragraph (1) and para ·graph (3) shall be done in accordance with Guide lines on Evaluation and Fostering of Plantation Com panies. CHAPTER VII ADMINISTRATIVE SANCTION Artide 38 (1)Plantation companies already securing IUP, IUP-B, or IUP-P as meant in Article 13 and securing ap proval of addition to size of land, change in kind of plant. Addition to processmq capacity or business diversification as meant in Article 30, which do ful fill the obligations as meant in Article 34 letters b, C, e, f, g and lorh shall be given warning maximally three times at a time interval of 4 (four) month each. (2)ln the case of the warning as meant in paragraph (1) being already issued and not fulfilled, IUP, IUP B or IUP-P of the companies shall be revoked and revocation of right to use land for business pur poses shall be recommended to the authorized in stitution Article 39 . Unless plantation companies already securing IUP, IUP-B, or IUP-P as meant in Article 13, and secur ing approval of addition to size of land! change in kind of plant, addition to processing capacity or business diversification as meant in Article 30 fulfill the obliga tion as meant In Article 24 letter d, their business li cense shall be revoked and revocation of right to use land for business purpose shall be recommended to the authorized institution. Article 40 ..'--L.L' • Article 40 (l)Plantation companies securing lUP, IUP-B, or lUP-P as meant in Article 13, and securing approval of busi ness dlverslllcatlon as meant in Article 30, which do not guarantee the continuity of core business, pre serve environmental conservation, micro-organism and prevent organism destructive to plant from con taminating as meant in Article 35 shall be given warn ing three times at the maximum with a time interval of 4 (four) months. (2)10 the case of the warning as meant in paragraph (1) being already issued and not obeyed, IUP, IUP~B or IUP-P of the plantation companies shall be re voked and revocation of right to use land for busi ness purpose shall be recommended to the autho rized institution. Article 41 Recommendation about revocation of right to land for business purpose to the authorized institution as meant in Article 38 , Article 39 and Article 40 shall be conveyed by the Minister of Agriculture on the basis of recommendation from governors or Regents/mayors. CHAPTER VIII TRANSmONAL PROVISION Article 42 (l)Plantation Business License (IUP) or Plantation Busi ness Registration Certificate (SPUP) already issue be fore this regulation is issued shall be declared to re main valid. (2)ln realizing plantation business, plantation compa nies already securing the license or Plantation Busi ness Registration Certificate as meant in paragraph (1) shall abide by this regulation. CHAPTER IX CONCLUSION Article 43 ucensmq service for plantation business in the Province of Nanggroe Aceh Darussalam and Province of Papua with special autonomy shall be provided by the provinces in accordance with legislation in force. Business News 7494/4-4-2007 12A Article 44 The issuance of business license of plantation cultivation business and/or license of plantation prod uct manufacturing industry in the framework of foreign investments and/or domestic investments shall secure prior technical recommendation from the Director Gen eral of Plantation. Article 45 Following the stipulation of this regulation, De cree of the Minister of Agriculture No. 357jKptsj HK.350/5/2002 regarding Licensing Guidance for Plan tation Business shall be revoked and declared null and void. Article 46 The regulation shall come into force as from the date of stipulation. Stipulated in Jakarta On Februari 28,2007 THE MINISTER OF AGRICULTURE, sgd. ANTON APRIYANTONO Copy of this. regulation is made available to: 1. The Coordinating Minister for Economy; 2. The Minister of Home Affairs; 3. The Minister of Industry; 4. The Minister of Trade; 5. The Minister of Forestry; 6. The State Minister for Cooperatives and Small and Medium-scale Businesses; 7. The State Minister for EnVironmental Affairs; 8. The State Minister for State-owned Enterprises; 9. The Head of the Investment Coordinating Board; la.The Head of the National Land Affairs Agency; 11.Governors of Provinces throughout Indonesia; 12.Regents/mayors throughout Indonesia; THE MINISTER OF AGRICULlURE sgd ANTON APRIYANTONO ATrACHMENT I ..... 13A ATrACHMENT 1: REGULATION OF THE MINISTER OF AGRICULTURE No. : 26/Permentan/OT.140/2/2007 Date : February 28,2007 MINIMAL CAPACITY OF PLANTATION-PRODUCT PROCESSING UNIT NEEDING BUSINESS UCENSE No. Commodities Capacities Products 1 2 3 4 1 Coconut 5,000 coconuts/day Copra/coconut oil and fibre, shell charchoal, dust, nata de coco 2 Palm Nut 5 tons of fresh nut bunch/hour CPO 3 Tea one ton of fresh sprout/day Green tea 10 tons of fresh sprout/day Blacktea 4 Rubber 600 Iitres of liquid lateX/hour Sheet/thick latex 16 tons of slab/day Crumbrubber 5 Cane 1,000 tons of cane/day (TeO) Teak of cane, robust 6 Coffee 1.5 tons of wet bunch/day Dry coffee seed 7 cacao 2 tons of wet seed/oneprocessing Dry cacaoseed 8 cashew 1 - 2 tons of cashew bunch/day Drycashew 9 Pepper 4 tons of wet pepperseed/day Dry black-pepper seed 4 tons of wet pepperseed/day Dry white pepper seed 10 Clove 4 tons of fresh clove flower/day Dry clove flower 11 Jathropa one ton or dry jatnropa seed/hour Crudecastrol all 12 Cotton 6,000 - 10,000tons of mixed cotton/annum Cotton fiber and cotton seed 13 Tobacco 35 - 70 tons of wet tobacco leaf Dry tobacco leaf ATTACHMEN12: REGULATION OFTHE MINISTER OF AGRICULTURE No. : 26/Pennentan/OT.140/2/2007 Date : February 28,2007 SIZE OFAREA REQUIRED FOR SECURING PLANTATION BUSINES UCENSE OF CULTIVATION (IUP-B) No Commodities Size of area (hectare) 1 Coconut 25 up to < 250 2 Palm nut 25 up to < 1,000 3 Rubber 25 up to < 2,800 4 Coffee 25 up to < 100 5 Cacao 25 up to < 100 6 Tea 25 up to < 240 7 Cashew 25 up to < 100 8 Cane 25 up to < 2,000 9 Pepper 25 upto <. 200 10 Clove 25 up to < 1,000 11 Jethropa 25 up to < 1,000 12 Cotton 25 up to < 6,000 13 Tobacco 25 up to < "laO THE MINISTER OFAGRICULTURE Sgd ANTON APRIYANTONO Business News 7494/4-4-2007 ATTACHMENT 3 ..... 14A ATTACHMENT 3: REGULATION OF THE MINISTER OF AGRICULTURE No. : 26/Permentan/OT.140/2/2007 Date : February 28,2007 MAXIMUM UMIT OFPLANTATION AREA USED BY ONE PLANTATION COMPANY No Commodities Size of area (hectare) 1 2 3 1 COConut 25,000 2 Palm rn.rt: 100,000 3 Rubber 25,000 4 Coffee 5,000 5 Cacao 5,000 '6 Tea 10,000 "7 cashew 5,000 8 cane 150,000 9 Pepper 1,000 10 Cbve 1,000 11 Jathropa 50,000 12 eotton 25,000 13 TobaccO 5,000 THE MINISTER OFAGRIOJllURE 5gd ANTON APRIYANTONO ===(R)=== Business News 7494/4-4-2007 1. 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