THE DECREE OF MINISTER OF INDUSTRY AND TRADE ON THE AMENDMENT TO DECREE OF MINISTER OF TRADE AND INDUSTRY NO.70/MPP/Kep/2/2003 ON PROCUREMENT AND DISTRIBUTION OF SUBSIDIZED FERTILIZERS FOR THE AGRICULTURAL SECTOR.
Several provisions in Decree of Minister of Industry and Trade No. 70/MPP/Kep/2/2003 on Procurement and Distribution of Subsidized Fertilizers for the Agricultural Sector are amended as follows:
(1) To amend the provisions of Article 1 so that it reads as follows:
"Article 1
In this decree, the meaning of:
(1) Subsidized Fertilizer is fertilizer, which procurement and distribution are subsidized by the government for farmers' needs and implemented based on government programs.
(2) Non-Subsidized Fertilizer is fertilizer, which procurement and distribution are not included in the government program and is not subsidized.
(3) Farmer is a person who has or who does not have land parcels and whose basic means of livelihood is to have land parcels and to use the said parcels as media to cultivate plants.
(4) Producers are companies producing urea-based fertilizers, SP-36, ZA, and NPK locally, i.e. PT Pupuk Sriwijaya, PT Pupuk Kujang, PT Pupuk Kalimantan Timur, TBK, PT Pupuk Iskandar Muda, and PT Petrokimia Gresik.
(5) Procurement is the process of procurement of fertilizer by producer.
(6) Distribution is the process of distribution of fertilizers from producer to consumer.
(7) Fertilizers Registered Importer, which is hereinafter r-,:'e,! "IT Pupuk" is the importer being holder of Importers Identification Number (API) who has been registered and has obtained certificate of appointment from the Director General for Overseas Trading.
(8) Distributor is a company which is legal and is appointed by the producer to purchase, to store, to sell, and to market subsidized fertilizers in huge number to be sold to final consumers through retailers.
(9) Retailer is an individual or a corporation appointed by the distributor and whose main activity is to sell directly to final consumers in small number.
(10) Lini I is location of fertilizer warehouse in the area of fertilizer factory locally or in destination harbor territory for importer fertilizers.
(11) Lini II is location of warehouse in the capital city of a province and fertilizer packing unit (UPP) or outside harbor area.
(12) Lini III is location of warehouse of distributor and/or producer of fertilizers in the regency/mayoralty, which is appointed/designated by the producer.
(13) Lini IV is location of retailer's warehouse appointed/designated by the distributor.
(14) Highest Retail Price or "HET" is the highest price of urea-based fertilizer, SP-36, and ZA in 50-kg pack and/or 20-kg pack for NPK paid in cash by farmers to authorized retailer in Lini IV.
(15) Minister is the Minister of Trade and Industry."
(2) To amend the provisions of Article 6 so that it reads as follows:
"Article 6
(1) Import of fertilizers may only be implemented by IT Pupuk, which, upon implementation of import, does not require import approval.
(2) Import of fertilizers with certain marks, which have obtained certificate of appointment as agent from producer of imported fertilizers may only be implemented by the sole agent as set forth in Decree of Minister of Trade No. 66/Kp/III/73.
(3) To obtain certificate of appointment as IT Pupuk as set forth in paragraph (1), the importer must file an application in writing to the Director General for Overseas Trading and must comply with the following conditions:
(4) The certificate of appointment of IT Pupuk shall be valid for one (1) year.
(5) Companies, which have obtained certificate of acknowledgment as IT Pupuk, must submit a report in writing as the format specified in Appendix I to this Decree with regard to import and distribution of fertilizers every month even though there is no importation or distribution to the Director General for Overseas Trading, Director General for Chemical, Agricultural & Forest Produce Industries, and Director General for Local Trading of Department of Trade and Industry.
(6) Certificate of IT Pupuk will be frozen if IT Pupuk does not submit the report set forth in paragraph (5) two (2) times consecutively.
(7) If, in the following month, after certificate of IT Pupuk has been frozen, the relevant company shall perform the obligation set forth in paragraph (5). The company's IT Pupuk certificate will be liquidated.
(8) The freezing of certificate of appointment as IT Pupuk as set forth in paragraph (6) and its liquidation as set forth in paragraph (7) will be implemented by the Director General for Overseas Trading.
(9) IT Pupuk will be revoked in the event of:
(10) Revocation of IT Pupuk as set forth in paragraph (9) shall be implemented by the Director General for Overseas Trading;
(11) The import of fertilizers prior to the stipulation of this Decree may still be implemented with the condition that the fertilizers have arrived at the destination harbor not later than forty-five (45) days from date of stipulation of this Decree.
(12)Format of letter of appointment of IT Pupuk is as specified in Appendix II to this Decree. "
(3) To add a new provision being Article 15A, which reads as follows:
"Article 15A
Technical rules, which have not been covered in this Decree, will be stipulated by Decision of Director General for Local Trading. "
This Decree comes into full force and effect from the date of stipulation.
For public cognizance, this decree shall be published by placing it in State Gazette of the Republic of Indonesia.
Stipulated in Jakarta
On April 17, 2003
THE MINISTER OF INDUSTRY AND TRADE,
sgd.
RINI M SUMARNO SUWANDI