Regulation of the Minister of Agriculture No. 39/Permentan/OT.140/6/2010 concerning guidelines for food crop cultivation business licence

GUIDELINES FOR FOOD CROP CULTIVATION BUSINESS LICENSE (The Regulation of Minister of Agriculture Number 39/Permentan/OT.140/6/2010, 7 June 2010) BY THE GRACE OF ONE AND ALMIGHTY GOD THE MINISTER OF AGRICULTURE, Considering: a. that in order to develop food crop cultivation business license, Government Regulation Number 18 Year 2010 concerning Crop Cultivation Busi ness; b. that to provide protection and empowerment for wide-scale, small, and small-scale farmers in sup porting food security as well as to follow lip Ar ticle 18, Article 21. and Article 22 paragraph (6) Government Regulation Number 18 Year 2010 concerning Food Crop Cultivation Business; In view of: 1. Low Numbcr 12 Year 1992 (BN No. 5261 pagc 10B-ll B and so on) concerning Crop Cultivation System (State Gazette of the Republic of lndone sia Year 1992 Number 46, Supplementary State Gazette of the Republic of Indonesia Number 3478); 2. Law Number 7 Year 1996 (BN No. 5934 page 3. Law Number 32 Year 1999 (BN No. 7152 cane 98-18B) concerning Regional Government (State Gazette of The Republic of Indonesia Year 2004 Number 125, Supplementary State Gazette of the Republic of Indonesia Number 4437). which has been changed with the Law Number 8 Year 2005 concerning tha Enactment of Government Regulation in Lieu of Law Number 3 Year 2005 (RN. No. 7785 page 98) concerning the Amend ment of Law Number 32 Year 2004 on Regional Government to become Law (State Gazette Year 2005 Number 108, Supplementary State Gazette Number 4548); 4. Law Number 25 Year 2007 (8N No. 7508 page 2B-14B) concerning Copitol Investment (Statc Gazette Year 2007 Number 67, Supplementary State Gazette Number 4724); 5. Law Number 26 Year 2007 (BN No. 7556 page 13B-226 and so on) concerning Capital lnvest ment (State Gazette Year 2007 Number 68, Sup plerneruar v State Gazette Number 4725)"; 6. Law Number 20 Year 2008 (BN No. 7692 page 3B-10B) concerning Micro, Small, and Medium 208-258 and so on) concerning Food (State Ga- Business (State Gazette Year 2008 Number 93, zette of the Republic of Indonesia Year 1996 Supplementary State Gazette Number 4866); I Number 99, Supplementary State Gazette of the I 7. Law Number 32 Year 2009 (BN No. 7880 page 3D Republic of Indonesia Number 3656); 68-18B and so on) concerning Environmental Business News 8114/6-6·2011 Protection and Management (State Gazette Year 2009 Number 140, Supplementary State Gazette Number 3699); 8. Government Regulation Number 6 Year 1995 (BN No. 5693 page 1B-7BI concerning Crop Protec tion (State Gazette Year 1995 Number 12, Sup plementary State GazP.tte Number 3586); 9. Government Regulation Number 13 Year 1995 (BN No. 5713 page 1BB-20B) concerning Indus try Business License (State Gazette Year 1995 Number 25, Supplementary State Gazette Num- , ber 3596); 10.Government Regulation Number 40 YeElr 1996 (BN No. 5875 page 1B-13BI concerning Rights to Cultivate, Right:> to Ouild, night:> to Use ot Land (State Gazette Year 1996 Number 58, Supple rnentarv Stale Gazelle Number 3643)~ 11. Government Regulation Number 44 Year 1997 (BN No. 6092 page 1B-56) concerning Partner ship (State Gazette Year 1991 Number 91, Sup plementary State Gazette Number 3718/; 12. Government Requlation Number 27 Year 1999 IBN No. 6436 page 16-96) concerning Analysis on Environmental Impact (State Gazette Year 1999 Number 59, Supplementary State Gazette Number 3838); 13. Government Regulation Number 68 Year 2002 (BN No. 6892 page 13B-17B) concerning Food Security (State Gazette Year 2002 Number 142, Supplementary State Gazette Number 4254); 14. Government Regulation Number 21 Year 2005 (BN No. 7240 page 3B-9Bl concerning Genetic Engineering Products (State Gazette Year 2005 Number 44, Supplementary State Gazette Num ber 4498); 15.Government Regulation Number 38 Year 2007 IBN No. 7576 page 1B-6B) concerning Division of Governmental Affairs among Government, Province Government and District/City Govern ment (State Gazette Year 2007 Number 82, Sup plementary State Gazette Number 4737); 16. Government Regulation Number 18 Year 2010 (BN No. 7924 page 21 B-26B) concerning Food Crop Cultivation Business (State Gazette Year 20 10 Number 24, Supplementary State Gazette Number 5106); 17. Presidential Decree Number 84/f"' Year 2009 {ON No. 7875 page 13B-14B) Formation of United In donesia Cabinet II; 18. President Regulation Number 47 Year 2009 (BN Number 7927 page 26-12BI concerning the For mation and Organization of State Ministry of Re pUblic of IndonesIa; 19.President Regulation Number 24 Year 2010 con cerning Positions, .Duties, and Functions of State Ministry as well as the Order of Organization, Du ties, and Functions of State Ministry Echelon I; 20. Regulation of Minister of Agriculture Number 299/Kpts/OT.14011/2005 concerning Organiza tion and Management of Ministry of Agriculture, juneto Regulation of Minister of Agriculture Num ber 111PermentanlO1.140/2/2007; 21. Regulation of Minister of Agriculture Number 341/Kpts.'OT.140/9/2005 concerning Organiza tion and Management Apparatus of Ministry of 31 Agriculture. jllncto RegulAtion of Minister of Agricul- 4. Wide Scale Farmer is Indonesian individual who ture Number 12/Permentan/OT; 140/2/2007; runs business of food crop production process 22. Regulation of Minister of Agriculture Numher 511/Kpts/PD.310/9/2006 concerning Type of on 2 (two) hectares land up to 25 (twenty-five) hectares land and/or runs business of post-bar Fostered Commodity of Directorate General of vest handling not reAching in5:tallp.d unit capacity . Plantation, Directorate General of Crop Food and of certain business• Directorate General of Horticulture; 5. Small Farmer is Indonesian individual who runs business of food crop production process on 0.3 DECIDED: (zero point three) hectare land up to 2 (two) hect To stipulate: ares land and/or runs business of post-harvest REGULATION OF MINISTeR OF AGRICULTURE CON- handling not reaching installed unit capacity of CERNING GUIDELINES FOR FOOD CROP CULTIVA- certain business. TION BUSINESS LICENSE. 6. Small SClile Farmer is Indonesian individual who runs business of food crop production process CHAPTER I on less than 0.3 (zero point three) hectare land GENERAL PROVISIONS and/or runs business of post-harvest handling not Article 1 reachlnq installed unit capacity of certain busi In this Minister Regulation there are defini- ness, only to meet daily needs. tions as follows: 7. Food Crop Company is actor of Food Crop Culti 1. Food Crop CUltivation Business is a series actlvi- vation Business that is Indonesian citizen or legal ties of development and utitization of vegetable resources through human efforts with capital, technology, and other resources to produce food crop to fulfill human needs in a better way; 2. Food Crop Commodity is fostered crop of Direc torate General of Food Crop as stipulated in the Decree of Minister of Agriculture Number 5111 entity founded accordingly to Indonesian law and located in Indonesia that runs Food Crop Cultiva tion Business with certain business scale. 8. Production Process Food Crop Cultivation Busi ness License next will be mentioned as IUTP-P is written license issued by authority official, which is mandatory to have by the actor of production Kpts/PD.31 0/912006; process business above certain business scale. Business News 8114/6-6-20/1 PP is written license issued by authority official, 9. Post-Harvest Handling Food Crop Cultivation Business License next will be mentioned as IUTP-will be mentioned as business actors are ,«ide scale farmers, small farmers, small scale farmers I or Food Crop company that runs business in pro- I which is mandatory to have by the actor of post duction process and/or post-harvest han~~n~~ L ~~est handling business above certain business 3. Actors of Food Crop Cultivation Business next 32 RUII I scale. 10. Food Crop Cultivation Business License next will be mentioned as IUTP is writt~n license issued by authority official, which is mandatory to .have by the actor of productiun process and post-harvest handling business with certain business scale. 11. Production Process BusIness R.egistration Mark next will be mentioned as TDU-P is written li cense issued by authonty official to the actor of production process business under certain busi ness scale. 12. Post-Harvest Handling Business Registration Mark next will be mentioned as TDU-PP is written license issued by authority official to the actor of post-harvest handling business less than certain business scale. 13. Food Crop Cultivation Business Registration Mark next will be mentioned as TDU is written license issued by authority official to the actor of produc tion process and post-harvest handling business under certain business scale. 14. Genetic Engineering Product Crop is crop pro duced from the application of genetic engineer ing technique. 15. Director General is the Director General who is responsible for production and/or food crop post harvest field. 16. Office is the Office that is responsible for produc tion and/or food crop post-harvest field. Article 2 (1) This regulation is meant as guidance for regional government in providing service for license. and busincas actor who will run food crop eultiva tion business in certain business scale with the objection to provide protection, empowerment of wide-scale farmers, small farmers, and small scale Iarrners. assurence of food crop business in supporting food security, (2) The scope of this R.egulatiun includes: a. type and licensing of food crop cultivation business; b. requirement and procedure of license applica tion for food crop cultivation business; c. partnership; d. business development; e. guidance and monitoring; f. society participation; and g. administration sanction. CHAPTER II BUSiNESS TYPE AND LICENSiNG FOOD CROP CULTIVATION Article 3 (1) Type of food crop cultivation business consists of: a. production process business; b. post-harvest h~ndling business; and c. combination business of point a and point b. (2) Production process business as meant at para graph (1) point aIncludes preparation of land and crop growth medium, crop nursery, planting, crop maintenance/protection, and/or harvesting. (3) Post-harvest handling business as meant at paragraph /1) point b includes cleaning, peel ing/faIling, drying, sorting, grading, processing, Business News B11416-6-2011 133 preserving, pocking, storing, quality standardizing, distribution and/or marketing of food crop cul tivation products. (4) Combination Business as meant at paragraph (1) point c includes pruductlon process business and post-harvest handling. Article 4 Food crop cultivation business as meant in Ar ticle 3 can be done throughout Indonesia by busi ness actors. Article 5 (11 Foreign legal entity that runs food crop cultivation business is obliged to cooperate with Indonesian food crop cultivation business actor by forming Indonesian legal entity and located in Republic of Indonesia. (2) For foreign capital investment in food crop cul tivation business, the most capital ownership is 49% (forty-nine percent). (31 Foreign capital ownership as meant at paragraph (2) is stipulated in accordance to the law and reg ulation. Article 6 (1) Production process business as meant in Article 3 paragraph (1) point a With business scale less than 25 (twenty-five) hectares and/or using per manent employee less than 10 (ten) people must be registered and given TDU-P by Regent/Mayor. (21 Post-harvest handling business as meant in Ar ticle 3 paragraph (11 point b with installed ca paoitv less than capacity stated on attachment 1 as inseparable part of this Regulation, selting result (turnover) for 1 (one) yeor is less than IDR2,500,OOO,OOO.- (two billion five hundred million rupiah) and/or using permanent employee less than 10 (ten) people, must be registered and given TDU-PP by regent/mayor. (3) Food crop cultivation business as meant in Ar ticle 3 paragraph (1) point t; with scale less than 25 (twenty-five) hectares, installed capac ity less than the capacltv stated on attachment 1 as inseparable part of this Regulation, selling result (turnover) for 1 (one) year is less than lDR2,500,OOO,OOO.- (two billion five hundred million rupiah) and/or using permanent employee less than 10 (ten) people, must be registered and given TOU by regent/mayor. (41 TDU-P, TDU-PP, or TDU as meant at paragraph (1), paragra ph (21. and paragraph (31 are -effec tive just like IUTP-P, IUTP-PP, or 1UTP. (5) Issuance TDU-P, TDU-PP, or TDU as meant at paragraph (1), paragraph (21. and paragraph (31 are free of charge. Article 7 (1) Production process business as meant in Arti cle 3 paragraph (11 point a with business scale 25 (twenty-five) hectares or more and/or using permanent employee 10 (ten) people or more is obliged to have IUTP-P. (2) Post-harvest handling business as meant in Arti cle 3 paragraph (11 point b with installed capac ity same as or more than the capacity stated on 34 Business News 8114/6-6·2011 attachment 1 as inseparable part of this Regula tion, with selling result (turnover) for 1 (one) year is equal to or more than IDR2,500,OOO,OOO.· (two billion five hundred million rupiah) and/or using permanent employee 10 (ten) people or more, is obliged to have IUTP-PP. (3) Food crop cultivation business as meant in Ar ticle 3 paragraph (1) point c with scale 25 (twenty-five) hectares or more, installed capac ity same as or more than the capacity stated on attachment 1 as inseparable part of this Regu lation, selling result (turnover) for 1 (one) year is lDR2,500,OOO,OOO.· (tWO billion five hundred million rupiah) or more and/or using permanent employee 10 (ten) people or more, is obliged Lo have IUTP. Article 8 (1) IUTP-P, IUTP-PP, or lUTP as meant in Article 7 are given by: a. regent/mayor, for business that located in one district/city. b. Governor, for business that located across more than one district/city or across more than one province. (2) Regent/mayor and Governor in issuing IUTP-P, IUTP-PP, or IUTO as meant at paragraph (1) con cerns technique consideration from Head of Of fica of district/city or province. Article 9 (2) Scale of land area as meant at paragraph (1) is not applied on State-owned Enterprise and Re gion-owned Enterprise. (3) Scale limit of production process business land area for planting, in Papua is at maximum twice scale limit of area scale as meant at paragraph (11. Article 10 (1) IUTP-P, IUTP-PP, and IUTP as meant in Article 7 are effective as long as business actor still runs the business. (2) Ownership of IUTP-P, IUTP-PP, and IUTP as meant in paragraph (1) is forbidden to be trans ferred. CHAPTER III APPLICATION REQUIREMENT AND PROCEDURE FOOD CROP CULTIVATION BUSINESS LICENSE First Part Requirement Article 11 Requirements to obtain lUTP-P as meant in the Article 7 paragraph (1): a. National Identity Card/NIC (KTP) for individual; b. Deed of company establishment and latest change of it; c. Tax Payer Identification Number; d. Certificate of domicile; e. Conformity recommendation to Area Spatial Plan (1) Maximum land area of production process busi- ning (RTRWlIDetails of Spatial Planning (RDTR) ness for planting, One unit company 10,000 (tenj of District/City and regent/mayor for IUTP-P is thousand) hectares. sued by Governor; Busi~f1;sH~-ws8;-;:{/-6-6-2011 35 f. Conformity recommendation to macro plan for provincial food crop development from Governor to IUTP-P issued by regent/mayor; g. License of Location from regent/mayor com pleted with map of potential Iocatlon with scale 1: 100,000 or 1: 50,000; h. Work plan for unit development uf ruuu crop cul tivation business; i. Result uf Allaly~is on Environmental Impact/AEI (AMDAL) or Environmental Management Effort/ EME (UKL) and Environrnentel Monitoring Effort/ EME (UPL) accordingly to law and regulation in environmental field; j. Statement of commitment to apply food quality aaeurance system on agricultural product; k. Statement of commitment to carry out business activities 6 (six) months at the latest since the issuance of business license; and I. Statement of preparedness to establish partner ship. Article 12 Requirements: 'to obtain IUTP-PP as meant in Article 7 paragraph (2): a. National Identity Card/NIC (KTP) for indivTdual: b. Deed of company establishment and latest change of it: c. Tax Payer Identification Number; d. Certificate of domicile: e. Trade Business LicensefTBL (SIUP); f. Industry Business License (IUP); g. Conformity recommendation to RTRW/RDTR dis trict/city from regent/mayor to IUTPcPP issued by Governor; h. ConformitY recommendatiun lU macru plan for provincial food crop development from Governor lo lUTP-PP issued by regent/mayor; I. License of Location from regent/mayor com pleted with mop of potential location with acale 1:100,000 or 1:50,000; j. Recummenuation on location from Regional Gov ernment of processing unit location; k. GUarantee on raw materiel supplv known by re gent/mayor; l. Work plan for unit development of food crop cul tivation business; m, Result of AMDAL or UKL and UPL accordingly to the law and regulation in environmental field; n. Statement of commitment to apply food quality assurance system on agricultural product; o , Statement of commitment to carry out business activities 6 (six) months at the latest since the issuance of business license; and p. Statement of preparedness to establish partner ship. Articlp. 13 To obtain IUTP as meant in Article 7 para graph (3) business actor has to meet requirement as meant in Article 11 and Article 12. Article 14 Realization of production process business, post-harvest handling, or food crop cultivation busi ness as meant in Article 11, Article 12, or Article 13 for the ones using Rights to Cultivate (HGU) at maxi mum 3 (three) years since the issuance of IUTP-P, IUTP-PP, or IUTP. 36 Secofld Part Application Procedure Article 15 (1) To obtain IUTP·P, rUTp·PP, or IUT?, applicant must submit application in written to regent/may or or Governor as meant in Article 8 by attaching the requirements as meant in' Article 11 and/or Article 12. (2) Regent/mayor or Governor up to 15 (fifteen) working days at the latest since the date of ap plication acceptance as meant at paragraph (1), must give reply as to approve, to delay, or to reject. (31 If up to 15 (fifteen) working days as meant at paragraph (2) regent/mayor or Governor has not given reply, application is considered complete and apwoved. (4) rUTp·p, rUTP-pp, and IUTP must be issued for complete and approved application as meant at paragraph (3). , Article 16 (1) Application is delayed as meant in Article 15 paragraph (2) if after checking the documents there is still requirement to complete. (2) Delay as meant at paragraph (1) is informed in written to applicant along with reason for delay. (3) If applicant has not completed the requirement up to 30 (thirty) working days at the latest-since the date of delay information acceptance as meant at paragraph (2), application is considered revoked. (4) If applicant has completed the requirements be fore 30 (thirty) working days as meant at para· graph (3), regentfmayor or Governor within 15 (fifteen) working days has issued IUTP-P, IUTP· PP,IUTP. Article 17 (1) Application is rejected as meant in Article 15 paragraph (2) if documents checking reveals that. requirements are not correct, planned business is against public order and/or macro plan for Provin cial food crop development or districtfcity RTRW. (2) Rejection as meant at paragraph (1) is informed in written to applicant along with reason for re jection. Article 18 Food crop cultivation business established on the land belongs to indigenous people, aside the obligation to fulfill requirements as meant in Article 11 and/or Article 12, its utilization status must have been settled by business actor with local indigenous people with written evidence. Article 19 Application for JUTP·P, IUTP-PP, or IUTO using genetic engineering product crop, aside from fulfilling requirements as meant in Article 11 and/or Article 12 must attach biological safety recommenda tion from Biological Safety Commission. CHAPTER IV PARTNERSHIP Article 20 (1) Development of food crop cultivation business is lIu.in.... N""'" 11114'(,-(,-1011 37 done through partnership. (2) Partnership as meant at paragraph (1) is based on benefit, mutual profit, mutual respect, mutual responsibility, mutual interrelations, and sustain able. (3) Partnership as meant at paragraph (1) is done for empowerment and improvement of added value for wide scale farmers, small farmers, and small scale farmers and/or local society as well as to ensure sustainability of food crop cultivation business. (4) Partnership as meant at paragraph (1) can be in the form o r provision of raw material, produc tion facilities. processing and marketing facilities, transportation, operational, capital participation, and/or other supporting services. Article 21 ,( 1) Partnership as meant In Article 20 is done in wnt ten agreement form at least consists of rights and obligations, guidance, business development, fi nancing, period of time, and dispute resolution. (2) Partnership agreement period as meant at para graph (1) is at least one planting season. (3) Partnership as meant at paragraph (1) must be signed by both sides and acknowledged by re gent/mayor, Governor, or appointed official. CHAPTER V BUSINESS DEVELOPMENT Article 22 Development of food crop cultivation busi ness includes change of land area and/or change oi installad capanitv of post-harvest business unit. Article 23 Change of land area and/or installed capac ity of post-harvest business unit from registered busi ness scale to become licensed business scale must meet requirements as meant in Article 11 and/or Ar ticle 12. Article 24 (1) Business actor who has IUTP-P or IUTP when do ing change of land area of 25 (twenty-five) hect ares or more must have approval from license grantor. (2) Business actor who has lUTP-PP or IUTP when doing change of 25% (twenty-five percent) or more from installed capacity of post-harvest business unit installed capacity of post-harvest business Unit must have approval from license grantor. (3) To obtain approval for land area change and/or installed capacity of processing unit as meant at paragraph (1) and paragraph (21. business actor submits written application to license grantor as meant in Article 8 by attaching requirements as meant in Article 11 point e, f, g, h, and i and/or Article 12 point g, h, i, j, k, I, and m. (4) Regent/mayor or Governor in giving approval for land area change and/or installed capacity of pro cessing unit as meant at paragraph (1) and para graph (2) reters to RTRW and RDTR. (5) Change of land area and/or installed capacity ot processing unit as meant at paragraph 11) and 38 Business News 8114/6-6-2011 ,! " , ,i, , GOVERNMENT REGULATIONS", "I ,'", '" ,'" paragraph (2) on the land betonqs to indigenous people, aside the obligation to fulfill require ments as meant at paragraph (3), its utilization status must have been settled by business actor with local indigenous peuple with written evi dence. Article 25 (1) Regent/mayor or Governor up to l!:l (fifteen) working days at the latest since the date of ap proval application as meant in Article 24, must give reply as to approve, to delay, or to reject. (2) If up to 15 (fifteen) working days as meant at paragraph (1) regent/mayor or Governor has not given reply, approval application is considered complete and approved. (3) Land area change approval and/or installed ca pacity of post-harvest business unit must be is sued for approved application as meant at para graph (2). Article 26 11) Approval application is delayed as meant in Ar ticle 25 paragraph (1) if after checking the docu ments there is still requirement to complete. (2) Approval delay as meant at paragraph (1) is in formed in written to applicant along with reason for delay. (3) If applicant has not completed the requirement up to 30 (thirty) working days at the latest since the date of approval delay information acceptance as meant at paragraph (2), application is considered revoked. (4) If applicant has completed the requirements be fore 30 (thirty) working days as meant at para graph 13}, regent/mayor or Governor within 15 Ififteen) working days must issue approval for land area change and/or installed capacity of post-harvest business unit. Article 27 (1) Approval appucation is rejected as meant in Ar ticle 25 paragraph (1) if documents checking re veals that requirements are not correct, planned business is against public order and/or macro plan for provincial food crop development or district! city RTRW. (2) Rejection as meant at paragraph (1) is informed in written to applicant along with reason for re jection. CHAPTER VI GUIDANCE AND MONITORING Article 28 10 IUTP-P, IUTP-PP. or lUTP issued by regent/mayor as meant in Article 8 is issued with copy to con cerned province Governor from the Minister, in this case Director General. (2) IUTP-P, IUTP-PP, or IUTP issued by governor as meant in Article 8 is issued with copy to Minister in this case concerned Director General and re gent/mayor. Article 29 Business actor who has IUTp·P as meant in the Article 7 paragraph (1) has obligations as follows: a. to materialize business within 6 (six) months since the issuance of IUTP-P; h. to ::Ipply AMDAL or UKL and UPL accordingly to the law and regulation in environmental field; c. to grow and to empower local society/coopera tive; as well as d. to report development of production process busi ness to regent/mayor or Governor accordingly to their authority as meant in Article 7 paragraph (1) every harvest time according to kind of plant or any time necessary. Article 30 Business actor who has IUTP-PP as meant in Article 7 paragraph (2) has obligations as follows: a. to materialize business within 6 (six) months since the issuance of IUTP-PP; b. to apply AMDAL or UKL and UPL accordingly to the law and regulation in environmental field; c. to grow and to empower local society/coopera tive; as well as d. to report 'develop rnent of peat-harvest handling business to regent/mayor or Governor accord inglytotheir authority as meant in Article 7 para graph (2) periodically at least once in 12 (twelve) . months or any time necessary. Article 31 Business actor who has 1UTP as meant in Ar ticle 7 paragraph (3) is obliged to materialize as meant in Article 29 and Article 30. Article 32 (1) Reporting as meant in Article i29 point d and Ar ticle 30 point d includes realization of CUltivation land area to use, condition/attack from organism. production development, and result processing or marketing accordingly to business type as meant in Article 3 paragraph (1) with format as stated on attachment 2 as inseparable part of this Regu lation. (2) Reporting as meant at paraqraph (1) by buslness actor to regent/mayor in this case Head of Office of district/city, next from Head of Office of dis trict/city to Governor in this case Head of Office of province. Head of Office of province reports to Minister in this case Director General. Article 33 Actor of food crop cultivation business as meant in Article 29, and Article 3D, and Article 31 in running the business is obliged to ensure business sustainabilitv, to preserve environmental functions, genetics resources, to prevent the spread of Plant Pathogenic Organisms/PPO (OPT). and to prevent loss for other party and/or for public interest. Article 34 (1) Guidance and monitoring of food crop cultivation business is carried out by Provincial Government and District/City accordingly to their authority scope. (2) In order to carry out guidance and monitoring as meant at paragraph (1), evaluation is performed periodically based on report on development of food crop cultivation business as meant in Article 29, Article 3D, and Article 31. 40 Business News 811416·6·2011 , " ~ ,) 1}J, ,~ ~I ~ ; , , ;' GOVERNMENT REGULATIONS , , ' l;u i' I' Article 35 (1) Business actor who utilizes service and/or facili tres provided by Government in running business is obliged to pay State Non-Tax Revenue/SNTR (PNBP). (2) Type and amount of tariff upon the use of ser vices and facilities as meant at paragraph O} is done in accordance to the law and regulation in PNBPfield. Article 36 For small scale farmers and small farmers who use services and/or facilities provided by gov ernment as meant in Article 35 are not applied with PNBP tariff. CHAPTER VI1 SOCIETY PARTICIPATION Article 37 (l) Society has participation in protection of fopd crop cultivation business development. {2} Society participation as meant at paragraph {l} can be done by individual and lor group in the form of organization, formal as well as informal. {3} Participation as meant at paragraph Il} is done through participative pattern in stages of plan ning, development, monitoring, and/or empower ment of wide scale farmers, small farmers, and small scale farmers. {4} Extending raws on the implementation proce dures of society participation as meant at para graph (31 are regulated by regulation of regentl mayor or governor. Article 38 Society participation as meant in Article 37 paragraph (3) is done through; a. providing suggestion on planning, response, and/ or improvement upon the issuance of food crop cultivation business license; b. partnership implementation as meant in the Ar ticle 20 and Article 21; c. submitting report arid monitoring upon business activities as meant in Article 29, Article 30, and Article 31; CHAPTER Vlll ADMINISTRATION SANCTION Article 39 If official in giving business registration mark as meant in Article 6 is proven collectina registration fee, sanction will be applied accordingly to the law and regulMion. Article 40 (1} Business actor who has lUTP-P, IUTP·PP, or IUTO as meant in Article 7, and has approval for land area change andior installed capacity of post harvest business unit as meant in Article 24. but does not carry out obligations as meant in Article 29 point b. c andior d and/or Article 30 point b. C, and/or d and/or does not ensure business sustainabilitv. environmental functions preserva tion, genetics resources, plant pathoqenic organ isms prevention, and/or prevention of other par ties loss and/or public interest as meant in Article 33 is given twice written warning, with 3 (three) months distance to each warning. Business News 811'1/6·6·2011 41 , '., ;, '. .', . :. • GOVERNMENT REGULATIONS , . {c. " : ' (2) IUTP-P, IUTP-PP,or IUTP will be revoked if there is no response after two warnings as meant at paragraph (1). Article 41 Upon revoked IUTP-P or IUTP as meant in Ar ticle 40, HGU annulment is suggested to authoritative instance. CHAPTER IX TRANSITiONAL PROVISIONS Article 42 (1) IUTP-P, IUTP-PP, IUTP, TDU-P, TDU-PP, or TDU issued before this RegUlation promulgated are still ettective. (2) Business actor who has IUTP-p. IUTP-PP, IUTP. TDU-P, TDUPP, or TDU before this Rcgulotion promulgated as meant at paragraph (1), at maxi mum within 1 (one) year after the promulgation of this Regulation must have adjusted and abide by this Regulation in doing business activities. (3) Business license application that in process, which license has not been issued, since the promulgation of this Regulation must adjust to this Regulation. CHAPTER X FINAL PROVISIONS Article 43 This Minister Regulation is not applicable on food crop nursery business and business of rice mill, huller, and process of rice hulling. Article 44 The lrnplementatlon of service for tood crop cultivation business license in Province Nanggroe Aceh Darussalam and Papua Area. with special au tonomy is carried out by province and accordingly to the law and regulation. Article 45 The issuance of food crop cultivation business license In framework of foreign capital investment or domestic capital investment must be preceded with technical recommendation from Director General on behalf of the Minster of Agriculture. Article 46 This Regulation starts to take effect since the promulgation date. For everybody to acknowledge this regula tion, this Regulation of Minister ot Agriculture is pro mulgated by placing it in the State Gazette of Repub lic of Indonesio. Enacted in Jakarta on 7 June 2010 THE MINISTER OF AGRICULTURE, Sgd. SUSWONO Promulgated in Jakarta on 14 June 2010 THE MINISTER OF LAW AND HUMAN RIGHTS THE REPUBLIC OF INDONESIA Sgd.. PATRIAUS AKBAR THE STATE GAZETTE OF THE REBULIC OF INDONESIA YEAR 2010 NUMBER 288 Editorial note: For technical reason, Attachment is not included. fA) 42 Business News 8114/6-6-2011