Decree of the Minister of Marine and Fishery No. KEP-33/MEN/2001 on Technical Directives for the utilization of food security credits in the Marine and Fishery Sector

Considering 000000000 MARINE AND FISHERY TH~ DEPARTMENT OF MARINE ANO FISHERY DECREe OF THE MINISTER OF MARINE AND· FISHERY . ' . . ~ NUMBER : KEP-33/MEN/2001 ; DATED : JUNE 8 .. 200t RE· TECHNICAL DIRECTIVES FOR THE UTILIZATION OF ·FOOD· SECURITY CREDITS IN THE MARINE AND FISHERY SECTOR THE MINISTER OF MARINE AND·FISHERY, 10 a. that in the framework of enhancing the food security in the. marine and fishery sector, it is deemed necessary to utilize the provision of credits at an affordable interest rate for financing investments and/or working capital of groups of fishermen, fish breeders, .fishery supporting businesses and fishery cooperatives;. b. that in order to ensure the orderly, controllable, effective and effecient granting and distribution of food security credits in the marine and fishery sector, technical directives for the utilization of food security credits in the marine and fishery sector needs to be stipulate by a ministrial decree. CAFI 10/AUGUST 31, 2001 Bearing itt mind To stipulate 1. 11 Act No. 9 of 1985 on fishery (State Gazette of 1985 No. 46, Supplement to State Gazette No. 3299); 2. Act No. 7 of 1992 on the banking system (State Gazette of 1992 No. 31, Supplement to State Gazette No. 3472); 3. Act No. 25 of 1992 on cooperative affairs (State Gazette of 1992 No. 45): 4. Government Regulation No. 15 of 1990 on fishery businesses as already amended the latest by Government Regulation No. 14 1 of 2000; 5. Presidential Decree No. 234/M/2000 as already amended the latest by Presidential Decree No. 165/M/2001: 6. Presidential Decree No. 165/M/2000 on the status, tasks, functions, organizational structures and working arrangements of ministries as already amended the latest by Presidential Decree No. 37 of 2001; 7. Presidential Decree No. 177 of 2000 on the organizational structures and tasks of ministries as already amended by Presidential Decree No. 38 of 2001; 8. Decree of the Minister of Finance No. 345/KMK.017/2000 on the financing of food security credits as already amended by the Decree of the Minister of Finance No. 417/KMK.017/2000; 9. Decree of the Minister of Marine and Fishery No, 18 of 2000 on the procedure for preparing legislation within the Ministry of Marine and Fishery; 10. Decree of the Minister of Marine and Fishery No. KEP.01/ME:N/2000 on the organization and working arrangement of the Ministry of Marine and Fishery. HAS DECIDED : THE DECREE OF THE MINISTER OF MARINE AND FISHERY ON TECHNICAL DIRECTIVES FOR THE UTILIZATION OF FOOD SECURJTY CREOiTS IN THE MARINE AND FISHERY SECTOR, CHAPTER I GENERAL PROVISION Article 1 Referred to in this decree as : 1. Food security credjts in the marine and fishery sector, hereinafter called Marine and Fishery KPP shaJJ be credits for investments and/or working capital provided by executing banks for groups of fishermen, fish breeders, fishery supponing businessmen and fishery .CAFI 10/AUGUST 31, 2001 12 cooperatives to finance their businesses; 2. Executing banks shall be commercial banks as meant in Act No. 7 of 1992 on the banking system as already amended by Act No. 10 of 1998, which provide and channel Marine and Fishery KKP. 3. Fishermen shall be people having the main job to catch fish; 4. Fish breeders shall be people having the main job to cultivate fish; 5. Fish breeding shall be an activity to bread, enlarge and/or cultivate fish and harvest its production; 6. Fishery supporting businesses shall be activities supporting fishing businesses a11d fish breeding; 7. Group of fishermen, fish breeders, fishery supporting· businesses shall be a group of fishermen, fish breeders and fishery supporting businessmen established on the basis of the same need which has an organizational structure and is located in a spread out area/ region/location/field; 8. Fishery cooperatives shall be primary cooperatives having a fishery business unit which are established and comprise individuals as meant in Act No. 25 of 1992 on cooperative affairs; 9. Operational Fishery Counselors, hereinafter called PPL, shall be civil servants having the principal tasks of guiding and enhancing the capability of fishermen, fish breeders and fishery supporting businessmen in the application of the recommended technology; 10. Fishery service shall be a technical institution of regency/city administrations having the principal tasks and functions in the marine and fishery sector; 11. Fishing shall be an activity aimed at obtaining fish in waters, which is not in a breeding condition, by whatever tools or methods, excluding activities which use ships tor loading, transportating, stooring', freezing, processing or preserving; 12. Individual Definitive Plan of Fishermen, Fish breeders and Fishery Supporting Businessmen, hereinafter called ADI, shall be a plan for working activities and investment need and/or working capital for a specified period which is compiled by and contains details of activities in the operation of fishing businesses, fish or fishery supporting businesses; 13. Definitive Plan for the Individual Need of Fishermen, fish Breeders and Fishery Supporting Businessmen, hereinafter called RDKI, shall be a plan containing details of the need for investments and/or working capital in the framework of fishing businesses, fish breeding and fishery supporting businesses for a specified period and furnished by a plan for repayment of credits to be obtained: 14. Definitive Plan for the Need of Group of Fishermen, Fish Breeders and Fishery Supporting Businessmen, hereinafter called RDKK, shall be a plan for the need for investment and/or working capital in the framework of fishing businesses, fish breeding and fishery supporting businesses for a specified period which is complied on the basis of deliberation of members of the group and furnished by a plan for repayment of credits obtained; CAFI 70/AUGUST 31, 2001 13 15. Memorandum of Collective Agreement hereinafter called MKS shall be a letter of agreement between the government and executing banks in the framework of financing, channeling of, requirements for and administration of Marine and Fishery KKP. CHAPTER 11 FINANCED BUSINESSES Article 2 {1) Marine and Fishery KKP shall be used for financing investments and/or working capital in the following fields : a. fishing businesses; b. fish breeding activities: c. fishery supporting businesses. (2) Marine and Fishery KKP for the fishing businesses as meant in sub-section ( 1) letter a shall be used for financing investments and/or working capital in the framework of procurement/ renew of equipment, machines and other fishing instruments. (3) Marine and Fishery KKP for the fish breeding activities as meant in sub-section ( 1) letter b shall be used for financing investments and/or working capital in the framework of building/procurement and/or rehabilitation of fish pools, ponds, floating nets, equipment and other fish breeding facilities. (4) Marine and Fishery KKP for the fishery supporting businesses as meant in sub-section {1) letter c shall be used for financing investments and/or working capital in the framework of building/procurement and/or rehabilitation of facilities of fishery supporting businesses. CHAPTER 111 EXECUTING BANKS Article 3 ( 1) Banks executing Marine and Fishery KKP shall be commercial bank ready to provide and channel Marine and Fishery KKP with the requirements as stipulated in the Decree of the Minister of Finance No. 345/KMK.17/2000 on the financing of food security credits as already amended by the Decree of the Minister of Finance No. 417/KMK.017/2000. (2) Tasks and obflgations of the executing banks in the framework of the provision of Marine and Fishery KKP shall include : a. to provide and channel Marine and Fishery KKP in accordance with the agreements in MKB; b. to help supervise the use and repayment of credits; c. to foster branch offices of executing banks in regions so that they are obliged to convey a monthly report on progresses of granting and repayment of Marine and Fishery KKP to the local Fishery Service not later than the 10th in the following month; d. to convey a copy of the monthly report on developments of granting and repayment of Marine and Fishery KKP that they manage to the Minister of Marine and Fishery CAFI 70/AUGUST 31, 2001 14 in this case·the Director General of Coastal Areas and Isles not later than the 25th of the following month. CHAPTER IV REQUIREMENTS FOR APPLICATIONS FOR MARINE AND FISHERY FOOD SECURITY CREDITS Article 4 ( 1 t An application for Marine and Fishery KKP for fishermen, fish breeders and fishery supporting businesses shall be submitted in a group by accompanying the following requirements : a. cenificate of membership of a group of fishermen, ·fish breeders or fishery . supporting businesses acknowdledged by the local Fishery Service; b. evidence of ownership of ship or agreement on rent of ship; c. evidence of ownership or agreement on rent of breeding land plot or pool or breeding facilities with the size of 0.5 hectate at the minimum or one unit of floating net at the minimum; d. evidence of ownership or agreement on rent of land plot or facilities of household· scale breeding businesses, in the case of decorative fish breeders; e. evidence of ownership or agreement of rent of land plot or facilities of household• scale businesses, in the case of fishery supporting businesses. which is accompanied by; f. statement of readiness to comply with Marine and Fishery KKP; g. certificate stating that members· of the group at least have 18 years old or been married: h. certificate stating that the number of group members is 5 (five)· people at the maximum in one spread out area/location; i. evidence as a customer of an executing bank; j. statement of readiness to join insurance program. (21 In the case of a fishery cooperative, the requirements for the application shall include : a. being a statutory body, sound in accordance with criteria stipulated by the State Minister for Cooperatives and Small- and medium-scale businesses; b. being a primary cooperative which has a business unit in the fishery sector and is registered at the local Service Office; c. being ready to complv with provisions on Marine and Fishery KKP; d. groups or business units in the fishery sector belonging to a primary cooperative must fulfill the following requirements : CAFI 70/AUGUST 31, 2001 15 1) evidence of ownership of ship or agreement on rent of ship; 2) evidence of ownership or agreement on rent of breeding land plot or pool or breeding facilities with the size of 0.5 hectare at the minimum or one unit of floating net at the minimum; 3) evidence of ownership or agreement on rent of land plot or facilities of household-scale breeding businesses, in the case of decorative fish breeders: 41 evidence of ownership or agreement of rent of land plot or facilities of household-scale businesses, in the case of fishery supporting businesses, which is accompanied by; 5) statement of readiness to comply with Marine and Fishery KKP; 6) evidence as a customer of an executing bank; 71 statement of readiness to joint insurance program. CHAPTER V TASKS ANO OBLIGATIONS OF MARINE AND FISHERY KKP Article 1 (1) Tasks and obligations of fishermen, fish breeders and fishery supporting businessmen shall be as follows : a. formulating Individual Definitive Plan (ROI) and Definitive Plan of lndjvidual Need (RDKII under the guidance of local PPL officers and/or Fishery Service; b. attending deliberation for the formulation of RDI and AOKI; c. signing ROI and RDKI; d. signing debentures at group/primary cooperative; e. using Marine and Fishery KKP in accordance with the technology recommendation; f. repaying Marine and Fishery KKP in accordance with the timetable mentioned in AOKI/statement of debentures at group. (2) Tasks and obligations of groups of fishermen, fish breeders and fishery supporting businesses shall be as follows : a. selecting prospective participants of Marine and Fishery KKP that are suitable to finance; b. examining the truth of RDI and RDKI submitted by members; c. preparing and signing the need of group members for credits in RDK and RDKK along with the members; CAFI 70/AUGUST 31. 2001 16 d. submitting applications for credits to executing banks, which are accompanied by recapitulation of RDK and RDKK acknowledged by the local Fishery Service; e. signing credit agreements with executing banks; f. receiving and channeling credits to members; g. administering credits in accordance with guidelines and regulations stipulated by executing banks; h. monitoring and supervising the utilization and use of credits by members; i. collecting and repaying Marine and Fishery KKP; j. being fully responsible for the execution of tasks and settlement of credits from members to executing banks; k. giving up evidence of settlement of credits to members through groups; I. fostering and counseling members; m. calling on members to save their money at executing banks; n. calling on members to participate in insurance program. (3) Tasks and obligations of cooperatives shall be as follows : a. selecting prospective participants of Marine and Fishery KKP that are suitable to finance; b. examining the truth of RDK and RDKK submitted by groups; c. preparing and signing the recapitulation of RDKK on the basis of RDKK submitted by groups; d. submitting applications for Marine and Fishery KKP to executing banks. which are accompanied by recapitulation of ROKK acknowledged by the local Fishery Service; e. signing credit agreements with executing banks; f. receiving and channeling credits to members through their groups; g. administering credits in accordance with guidelines and regulations stipulated by executing bank; h. monitoring and supervising the utilization and use of credits already channeled to their members; i. cofrecting and repaying Marine and Fishery KKP from members through their groups; CAFI 70/AUGUST 31, 2001 17 j. being fully responsible for the execution of tasks and settlement of credits from members to executing banks; k. remitting the repayment of credits from members to executing banks; I. giving up evidence of settlement of credits to members through groups; m. fostering and counseling members; n. calling on members to save their money at executing banks; o. calling members to participate in insurance program. CHAPTER VI TASKS AND OBLIGATIONS OF OPERATIONAL FISHERY COUNSELORS (PPLI Article 6 (H PPL shall have the following tasks and obligations: 1. making an inventory of fishermen, fish breeders and fishery supporting businessmen by both groups and fishery cooperatives which need Marine and Fishery KPP; 2. counseling with regard to Marine and Fishery KPP; 3. guiding fishermen, fish breeders and fishery supporting businessmen properly by both groups and fishery cooperatives in formulating ADI, RDKI, RDK and RDKK; 4. signing and being responsible for the truth of ROI, RDKI, RDK and RDKK prepared by fishermen, fish breeders and fishery supporting businessmen by both groups and fishery cooperatives as well as assisting them to submit credits and rapay credits to execuding banks; 5. assisting to recapitulate ADI, RDKI, ROK and RDKK; 6. guiding and monitoring the utilization of credits by fishermen, fish breeders and fishery supponing businessmen by both groups and fishery cooperatives in accordance with ADI, RDKI, RDK and RDKK; 7. monitoring and assisting fishermen, fish breeders and fishery supporting businessmen by both groups and fishery cooperatives to fulfill their obligations to repay credits in accordance with ROI, RDKI, RDK and RDKK; 8. encouraging fishermen, fish breeders and fishery supporting businessmen to join insurance program; 9. encouraging fishermen, fish breeders and fishery supponing businessmen to save their monet at executing banks; 10. conveying a monthly report on the progress of realization of Marine and Fishery KKP in their fostering areas to the Head of Regency/City Fishery Service with a copy made available to the local regent/mayor not later than the 10th of the following month. CAR 70/AUGUST 31, 2001 ( 1 ) HJ Hf IR fh@ ei§I 8# f3Jlb RliR§ RBf iViiJibll fSf fff§ ifflf3i8ffl8Atift8R 8# MsFiA8 iRB Fi§R8f¥ 1€1€~ ifl th@ f@fj8HE¥/Eity, fAI fHIE§ IRS 8f'Jlifjifi8ff§ I§ ffi@iRt iR iY8=§8EfiBR §i j §AafJ 9@E8fft8 m@· fll88R§i8ilifv ef fffl ISeil ~iiA@fY §@FViE@: @ttAIJfffl VII fA§ff§ MB 61M6Afl8N§ DJ Jl§Nili¥ §fRVI@~ Alfiell 1 fh~ f:i§h@fY §@HliE@ §hill h@lp §lJ~lfViH t~8 ifflf}l@rfllfffltiBR Bf fU~~l IAB i§§i§f f8 @R§!:lf@ the smootl:) F)l81¥ffl@m sf Mififfl ilAB ~i§fl8f¥ Ill:': 'fh'e,,ffish~rv· -Service shall Q@ BBlii@S te fik! Jifift iR ffl8Rif8fiR{f fA@ EAiAA@liAfl, i[!lPlernentation and repayment of Marinff ilAfl f=ii~lfY KKf:l: }ttf'el::fistierf,s,rvice,shall convey a--m:onthly·-repa:nnim .. Jh~ ffl8AitBfiRg Bf th@ EAitRR@liAi: i!flple mentation and repayment of Marine an,d Fishery KKP to the MiRi§f@f Rf M§f!A~ §FIS Jl she~f -in .. ·this ·case the ·Director Genenif-O;f. :Coa&tali·Ames:anddsles with a q9py rfl.c!P!3 !a\r'ahlt"blt!f to' the .Pro'vincial fishery Service nof' lat"'.'tt"la tt :the ·J!oth.. of': the , fQ 110 . .w i ng mo nHl. CHAPTER-VIII REQUIREMENTS FOR MARINE AND FISHE~Y KKP Article·. 8 The ceiling of Marine and Fishery KKP,shall be determihed on the basis of the real need of fishing, fish breeding and fishery supP.9,rting businesses. Ttie amp1;mt o,t the ceiling as meant in sub-sec.tiorH 1:1':shall be as follows : a. Rp 15,()0(),000 ~t the.maximum; in the:oase oVindiv.iduafs" with the maximum r,umber pf memlJers in a group being 20; b. ~p500,000,000 at the maximum, in the cas" of fishery cooperatives. The M inister of Marine and Fishery sh;;wll det~rmlne th e.amounl,:Qf:.·ceiljng of Marine and fishery KKP for every province and regency after hearing recommendations from executing J?11n1<s. CHAPTl:fl IX PROCEDURES FOR SUBM.ITTING AND CHANN.EU.N.G MARINE . Al',IP FISHERY FOOD $J;CURitY t:8.li?JT~ii' . Arti~-. ~ .. Members of groups shaJJ submit applications fo.r M~rinf!I ,n.('.I Fi$hery KKP through their ,,spe'ctive groups by accompanying th~ r•quirements 8,$ .mt!,ant in Artit;le 4 sub-~ection ( 1 ~. Ey.ery group shalt examine applications of its m~mbers a"d prep~re ROK and RDKK not later tl:u,m 30 days. Grqups snail submit applications for Marine and Fish~ry KKP. to loc.~I ~xecuting banks by accompanying the requirements as meant .in Article 4 sub~se.ctiQn ( 1) : J •• • • Executives of the groups shall sign credit ag~eements V)(jth ex.ecuting b anks. CAFI 10/AUGUST 31, 2001 19 Article 10 ( 1) Members of cooperatives shall submit applications for Marine and Fishery KKP through their cooperatives. (2) Cooperatives shall examine the truth of RDK and RDKK submitted by their business groups/units. (3) Cooperations shaU prepare and sign recapitulation of RDKK on the basis of RDKK submitted by their busin~ss groups/units. (4) Cooperatives shall submit applications for Marine and Fishermen KKP to executing banks by accompanying the requirements as meant in Article 4 sub-section (21. (5) Cooperatives shall sign credit agreements with executing banks. Article 11 « 1} Executing banks shall examine the completeness of documents on applications tor cred·,ts from groups/cooperatives. {21 Executing banks shall channel Marine and Fishery KKP to groups/fishery cooperatives on the basis of ROI, RDKI, RDK and ADKK. (3) Executing banks shall be entitled reject applications for ctedits if there are indications that documents on applications for credits are not made out truthfully and are not conveyed completely. (4) Groups of fishermen, fish breeders and fishery supporting bus ess.men iha\\ dvamvc\ Marine and Fishery KKP to theif members in the whole total of funds not latet than 5 (five) days as from the date of receipt of credits from executing banks. (5► Fishery cooperatives shall channel Marine and Fishery KKP to their members with the whole total of funds not later than 5 (five} days as from the date of receipt of ccedits ttom executing banks. CHAPTER X REPORTING Article 12 ( 1 l Marine and Fishery KKP shall be reported in levels with the procedure as follows : a. chairpersons of groups/cooperatives submit a monthly/report on the progress of realization of Marine and Fishery KKP to the local Fishery Service with a copy made available to the local regent/mayor not later than the 10th of the following month; b. heads of Fishery Services submit a monthly ,eport on the progress of realization of Marine and Fishery KKP in the respective working areas to the Minister of Marine and Fishery in this case the Director General of Coastal Areas and Isles wioth a copy made available- to the local governor not later than 2nd of the following month. CAFI 70/AUGUST 31, 2001 20 (2) Models of the reporting forms shall be as contained in the attachment to this decree which Is inseparable from this decree, CHAPTER Xt CONCLUSION Article 13 (1) ff deemed necessary, the Director general of Coastal Areas and Isles can issue technical directives for technical n'Ultters Of this operational guidance, (2) This decree shall come into force as from the date of stipulation. Editor's note: •)Forms•• not published CAFI '101AUGUST 31~ 2001, Stipulated at : J A K A R T A On : JUNE 8, 2001 THE MINISTER OF MARINE AND FISHERY signed ROKHMIN DAHUA1 000000000