REGULATION OF THE MINISTER OF TRADE
No. 17/M-DAG/PER/6/2011

CONCERNING
PROCUREMENT AND DISTRIBUTION OF SUBSIDIZED FERTILIZER FOR AGRICULTURE SECTOR

BY THE GRACE OF ALMIGHTY GOD,
THE MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA,

Attachment

Considering:

a. that in the framework of execution Article 3 Presidential Regulation No. 77/2005 concerning Stipulation of Subsidized Fertilizer as Goods in Supervision as amended by Presidential Regulation of the Republic of Indonesia No. 15/2011 concerning Amendment to the Presidential Regulation No. 77/2005, it is necessary to rearrange procurement and distribution of Subsidized Fertilizer for Group of Farmers and/or Farmers.

b. that in the effort to improve effectively, efficient and smooth procurement and distribution of Subsidized Fertilizer to support national food supply, it is needed procurement and distribution of fertilizer which comply with 6 (six) exactly principle, namely exact kind, amount, price, place, time and quality;

c. that based on Public Service Obligation (PSO) Approval from Minister of BUMN to PT. Pupuk Sriwidjaja (Persero) in Letter of Minister of BUMN to the Minister of Agriculture No. S-152/MBU/2011 dated March 29, 2011;

d. that based on considerations as intended in paragraph a, paragraph b, and paragraph c, it is necessary to stipulate Regulation of the Minister of Trade concerning Procurement and Distribution of Subsidized Fertilizer for Agriculture Sector;

In view of:

1. Emergency Law No. 7/1955 concerning Investigation, Prosecution, and Court for Economy Crime (Statute Book No. 27/1955, Supplement to Statute Book No. 801) as amended several times, the latest by Government Regulation in Lieu of Law No. 1/1960 (Statute Book No. 13/1960, Supplement to Statute Book No. 1933);

2. Government Regulation in Lieu of Law No. 8/1962 concerning Trade of Goods in Supervision (Statute Book No. 42/1962, Supplement to Statute Book No. 2469);

3. Law No. 11/1965 concerning Warehousing (Statute Book No. 54/1965, Supplement to Statute Book No. 2759);

4. Law No. 12/1992 concerning Plant Cultivation System (Statute Book No. 46/1992, Supplement to Statute Book No. 3478);

5. Law No. 19/2003 concerning State Owned Enterprise (Statute Book No. 70/2003, Supplement to Statute Book No. 4297);

6. Law No. 32/2004 concerning Regional Government (Statute Book No. 125/2004, Supplement to Statute Book No. 4437) as amended several times, the latest by Law No. 12/2008 (Statute Book No. 59/2008, Supplement to Statute Book No. 4844);

7. Law No. 39/2008 concerning State Ministries (Statute Book No. 166/2008, Supplement to Statute Book No. 4916);

8. Government Regulation No. 11/1962 concerning Trade of Goods in Supervision (Statute Book No. 46/1962, Supplement to Statute Book No. 2473) as amended by Government Regulation No. 19/2004 (Statute Book No. 68/2004, Supplement to Statute Book No. 4402);

9. Government Regulation No. 28/1997 concerning Addition of Capital Share of the Republic of Indonesia into the Share of PT. Pupuk Sriwijaya (Persero) Company (Statute Book No. 64/1997);

10. Government Regulation No. 102/2000 concerning National Standardization (Statute Book No. 1999/2000, Supplement to Statute Book No. 4020);

11. Government Regulation No. 8/2001 concerning Cultivation Fertilizer (Statute Book No. 14/2001, Supplement to Statute Book No. 4079);

12. Government Regulation No. 45/2005 concerning Establishment, Processing, Controlling and Liquidation of State Owned Company (BUMN) (Statute Book No. 117/2005, Supplement of Statute Book No. 4556);

13. Government Regulation No. 38/2007 concerning Sharing of Governmental Administration among Government, Province Administrator and Municipality/Regency Administrator (Statute Book No. 82/2007, Supplement to Statute Book No. 4737);

14. Presidential Regulation No. 77/2005 concerning Stipulation of Subsidized Fertilizer as Goods in Supervision as amended by Presidential Regulation No. 15/2011;

15. Presidential Regulation No. 84/P/2009 concerning Establishment of Unity Indonesia Cabinet II;

16. Presidential Regulation No. 47/2009 concerning Establishment and Organization of State Ministries;

17. Government Regulation No. 24/2010 concerning Position, Duty, and Function of State Ministries as well as Organization, Duty and Function of First Echelon of State Ministries.

18. Decree of the Minister of Industry and Trade No. 230/MPP/Kep/7/1997 concerning Goods are regulated in Import Procedures, as amended several times, the latest by Decree of the Minister of Industry and Trade No. 406/MPP/Kep/6/2004;

19. Decree of the Minister of Industry and Trade No. 753/MPP/Kep/11/2002 concerning Standardization and Supervision of Indonesian National Standard;

20. Regulation of the Minister of Agriculture No. 465/Kpts/OT.160/7/2006 concerning Establishment of Central Subsidized Fertilizer Controller Team;

21. Regulation of the Minister of Trade No. 14/M-DAG/Per/3/2007 concerning Standardization of Trading Service and Control of Obligatory Indonesian National Standard (SNI) on the Goods and Services are traded as amended by Regulation of the Minister of Trade No. 30/M-DAG/PER/7/2007;

22. Regulation of the Minister of Industry No. 19/M-IND/PER/2/2009 concerning Application of Obligatory Indonesian National Standard (SNI) on the Fertilizer as amended by Regulation of the Minister of Industry No. 37/M-IND/PER/3/2010;

23. Regulation of the Minister of Trade No. 20/M-DAG/Per/5/2009 concerning Provision and Procedure of Goods and Services Controlling;

24. Regulation of the Minister of Trade No. 54/M-DAG/PER/10/2009 concerning General Provision in Import;

25. Regulation of the Minister of Trade No. 31/M-DAG/PER/7/2010 concerning Organization and Working Procedure of the Ministry of Trade;

26. Regulation of the Minister of Agriculture No. 06/Permentan/SR.130/2/2011 concerning Requirement and Highest Retail Price (HET) of Subsidized Fertilizer for Agriculture Sector in Budget Year 2011;

HAS DECIDED:

To Stipulate:

REGULATION OF THE MINISTER OF TRADE CONCERNING PROCUREMENT AND DISTRIBUTION OF SUBSIDIZED FERTILIZER FOR AGRICULTURE SECTOR.

CHAPTER I
GENERAL PROVISION

Article 1

In this Ministerial Regulation:

1 Subsidized Fertilizer is goods which its procurement and distribution acquire subsidy from Government for the need of Farmers Groups and/or Farmer in agriculture sector consists of Urea fertilizer, Super phosphate (SP-36), Ammonium Sulfate (ZA), and Nitrogenous Phosphate Kalium (NPK) and other Subsidized Fertilizer stipulated by the minister who handle governmental function in agriculture sector.

2. Agriculture Sector is the sector relating to cultivation activities involve food crops, horticulture, people estate, animal breeding estate, and fish and/or shrimp cultivation.

3. Agriculture Special Program is Government Program through Agency authorized in Municipality/Regency Agriculture field or farmer organization for plant cultivation that is budgeted by Government and/or other agencies.

4. Farmer Group is group of farmers of plantation, cultivation or fish and/or shrimp cultivation farmers that is established based on resemblance of environment, social economic conditions, resources and friendship to increase and develop member business.

5. Farmer is a individual of Indonesian citizen to undertake own field or not for food crops cultivation, horticulture plants includes smallholders estate effort by business scale which insufficient to the certain scale and cultivation of cattle food greenly in business activities unnecessary of business license in accordance with the legislations and fish and/or shrimp cultivation activities unnecessary of business license.

6. PT. Pupuk Sriwidjaja (Persero) is Holding Company of PT. Pupuk Sriwidjaja Palembang, PT. Petrokimia Gresik, PT. Pupuk Kaltim, PT. Pupuk Kujang, and PT. Pupuk Iskandar Muda.

7. Producer is Fertilizer Producers, in this case are PT. Pupuk Sriwidjaja Palembang, PT. Petrokimia Gresiak, PT. Pupuk Kaltim, PT. Pupuk Kujang, and PT. Pupuk Iskandar Muda that produce organic and inorganic fertilizer.

8. Distributors are individual or company both in the form of legal body/legal entity or non-legal body/legal entity appointed by Producer based on Trading Agreement (SPJB) to buy, store, distribute, and sell Subsidized Fertilizer in groceries party in its responsibility area.

9. Retailer is private company or company in legal entity or non legal entity form which residence in District and/or Village, appointed by Distributor with main activities to perform sale of subsidized fertilizer in their responsible region directly to the Group of Farmers and/or Farmers.

10. Trading Agreement, hereinafter abbreviated as SPJB is cooperation agreement between Producer and Distributor or between Distributor and Retailer that has contents about rights and obligations or each party in Procurement and Distribution of Subsidized Fertilizer for Group of Farmers and/or Farmers according to the provisions in regulations.

11. Procurement is supply process of Subsidized Fertilizer by PT. Pupuk Sriwidjaja (Persero) which comes from Producers and/or Import.

12. Distribution is distribution process of Subsidized Fertilizer from PT. Pupuk Sriwidjaja (Persero) until Group of Farmers and/or Farmers as end consumers.

13. Responsible Regions are Procurement and Distribution area of Subsidized Fertilizer to the Group of Farmers and/or Farmers, starting from Line I, Line II, Line III, until Line IV that is stipulated by PT. Pupuk Sriwidjaja (Persero).

14. Definitive Plan of Farmers Group Request hereinafter abbreviated as RDKK is prediction of Subsidized Fertilizer request that is arranged by Farmers Group based on farmers area of farmers, plant, fish and/or shrimp cultivation, members of Farmers Group with recommendation of balance fertilizing of specific location according to the provisions are stipulated by minister who manages governmental administration in agriculture field.

15. Highest Retail Price, hereinafter called (HET) is highest price of Subsidized Fertilizer in 50 kg, 40 kg or 20 kg packages in Line IV that is bought by group of farmers and/or formers according to the provision are stipulated by minister who manages governmental administration in agriculture field.

16. Line I is fertilizer storage location in Producer plant or in destination port area of imported fertilizer.

17. Line II is Producer warehouse locations in the capital of the Province and Packing Fertilizer Unit (UPP) or outside the port area.

18. Line III is the location of the warehouse and/or Distributors in the district/city designated or established by the Producer.

19. Line IV is the location of the warehouse or retailer kiosks in the District and/or the Village designated or specified by the Distributors.

20. Subsidized Fertilizer Centre Supervision Team is Monitoring Team whose membership is composed of the relevant agencies at the Centre established by the minister conducting the government affairs in agriculture.

21. Fertilizer and Pesticide Supervisory Commission (KPPP) is related agency coordination in the supervision of fertilizers and pesticides established by the governor for the province and by the regent/mayor for district/city level.

22. Minister is the minister who conducted the government affair in the field of trade.

23. Governor is Head of the Provincial as intended in the Law concerning the Regional Government.

24. Regent/Mayor is the Head of Regency/City as intended in the Law concerning the Regional Government.

CHAPTER II
PROCUREMENT AND DISTRIBUTION OF SUBSIDIZED FERTILIZER

Part One
General

Article 2

(1) The Minister shall determine the policy of procurement and distribution of Subsidized Fertilizer to meet the domestic demand.

(2) To meet the domestic demand of Subsidized Fertilizer, the Minister asked the PT. Pupuk Sriwidjaja (Limited) to carry out the procurement and distribution of Subsidized Fertilizer destined for Farmers Group and/or farmer-based contractual between the Ministry of Agriculture with PT. Pupuk Sriwidjaja (Persero).

(3) PT. Pupuk Sriwidjaja (Persero) can stipulate producer for procurement and distribution of Subsidized Fertilizer in the area of responsibility for procurement and distribution of Subsidized Fertilizer in specified Province/Regency/City.

(4) Producers as intended in paragraph (3) were assigned as a domestic provider of fertilizers and are responsible for the smooth procurement and distribution as well as the availability of Subsidized Fertilizer in the area of their responsibility.

(5) Stipulation as intended in paragraph (3) shall be reported to:

(6) PT. Pupuk Sriwidjaja (Persero) is responsible for domestic procurement and distribution of Subsidized Fertilizer for the national agricultural sector in accordance with the principle of 6 (six) rights, they are right type, quantity, price, place, time, and quality from Line I through Line IV.

(7) Producers are responsible for procurement and distribution of Subsidized Fertilizer in accordance with principle 6 (six) rights, they are right type, quantity, price, place, time, and quality from the line I through Line IV in her area of responsibility.

(8) Distributors and retailers responsible for the distribution of Subsidized Fertilizer in accordance with principle 6 (six) rights, they are right type, quantity, price, place, time, and quality ranging from Line III to Line IV in her area of responsibility.

Part Two
Procurement of Subsidized Fertilizer

Article 3

(1) PT. Pupuk Sriwidjaja (Persero) shall ensure the provision and availability of domestic Subsidized Fertilizer stocks for the national agricultural sector ranging from Line I to Line IV in accordance with the principle of 6 (six) rights, they are right type, quantity, price, place, time, and the quality.

(2) Procurement as intended in paragraph (1) is based on the plan requirements stipulated in Ministerial Regulation that conducted the agriculture affair and its implementation regulation stipulated by the Governor or Regent/Mayor.

Article 4

(1) PT. Pupuk Sriwidjaja (Persero) shall ensure a minimum supply of Subsidized Fertilizer in Line III to the need for 2 (two) weeks ahead as planned in the domestic demand of Subsidized Fertilizer stipulated in the Ministerial Regulation that conducted the government affairs in agriculture.

(2) PT. Pupuk Sriwidjaja (Persero) shall ensure a minimum supply of Subsidized Fertilizer in Line III to the need for 3 (three) weeks ahead as planned in the domestic demand of Subsidized Fertilizer stipulated in the Regulation of the Minister that conducted the government affairs in agriculture in each of the peak growing season on November to January.

Article 5

PT Pupuk Sriwidjaja (Persero) must submit a procurement plan of Subsidized Fertilizer no later than October 1 for the planting season October to March and no later than April 1 for the planting season from April to September to:

Article 6

(1) In case of PT Pupuk Sriwidjaja (Persero) can not fulfill the obligations of the procurement and availability of Subsidized Fertilizer stocks caused by a surge in demand or disruption of plant operations, PT Pupuk Sriwidjaja (Persero) can do:

(2) The importation of fertilizers as intended in paragraph (1) b shall be based on the plan of the domestic demand of Subsidized Fertilizer stipulated by the minister conducting the government affairs in agriculture.

(3) The importation of fertilizers as intended in paragraph (1) performed after obtaining approval from the Director General of Foreign Trade on the recommendation of the Director General of Industrial Manufacturing Base, Ministry of Industry, and Director General of Agriculture Infrastructure and Structure, Ministry of Agriculture.

(4) Reallocation of Supply between the Producer and/or realization of importation as intended in paragraph (1) shall be reported in writing to:

Part Three
Distribution of Subsidized Fertilizer

Article 7

(1) Producers shall ensure the smooth distribution of Subsidized Fertilizer by simplification of procedures based on the principle of 6 (six) rights, they are right type, quantity, price, place, time, and quality.

(2) To keep the smooth distribution of Subsidized Fertilizer as intended in paragraph (1) Producers shall own and/or controlled warehouse in Line III in the area of their responsibility.

(3) Producers who do not have a warehouse in Line III on the specified District/Municipal, can serve Distributors from Warehouse in Line III of the nearest District/City, while it has capacity and the ability of distribution.

(4) Producers that factory or warehouse locations in Line II in the area of District/City of its responsibility can stipulate some warehouses of Line II as warehouse of Line III.

(5) Distribution of Subsidized Fertilizer is based on the plan requirements stipulated in the Ministerial Regulation that conducted the government affairs in agriculture and its implementation regulations stipulated by the Governor or Regent/Mayor.

(6) If distribution of Subsidized Fertilizer by Distributor and/or retailers is not going well, producers are required to distribute directly to farmers and/or Farmer Group on the Line IV after coordinating with the local Regent/Mayor in this case the Fertilizer and Pesticide Supervisory Commission at district/City.

(7) In the framework of the special agricultural program, producers may appoint Distributors to make direct sales to farmers and/or farmer groups who attend the program.

(8) Implementation as intended in paragraph (6) and paragraph (7) shall be reported to the Head of Regency/Municipality Agency in charge of trade and agriculture with a copy to the Head of the Provincial Agency in charge of trade and agriculture.

Article 8

(1) To implement the distribution of Subsidized Fertilizer, Producers stipulate an individuals or business entities, whether incorporated or not a legal entity as Distributors with their distribution areas of their responsibility of Subsidized Fertilizer in the specified Regency/City/District/Village based on SPJB.

(2) The working relationship of Producer with Distributor regulated in accordance with General Conditions Making SPJB Subsidized Fertilizer between Producer and Distributor as stated in Attachment I of this Ministerial Regulation.

(3) Distributor appointed must meet the following requirements:

Article 9

(1) Producers shall submit a list of Distributors and Retailers in the area of responsibility to the PT. Pupuk Sriwidjaja (Persero), and the Director General of Domestic Trade in this case the Director of Basical and Strategic Goods, Ministry of Trade, with a copy to:

(2) The form of the list as intended in paragraph (1) is stated in Attachment II A of this Ministerial Regulation and submitted no later than April 1 in the current year.

(3) In case of any change in the list as intended in paragraph (1), producers are required to submit amendments not later than 14 (fourteen) working days after any change.

Article 10

(1) Distributor shall ensure the smooth distribution of Subsidized Fertilizer according to principle 6 (six) rights, they are right type, quantity, price, place, time, and quality in the area of responsibility.

(2) Duties and responsibilities of the Distributor is as follows:

(3) To purchase of Subsidized Fertilizer, Distributor shall state the quantity and type of fertilizer, name, and address, and responsibility area of designated retailers.

(4) Distributor must submit a list of retailers in the responsibility area to the producer who appointed it with a copy to:

(5) The form lists as intended in paragraph (4) is stated in Attachment II B of this Ministerial Regulation and shall be submitted no later than March 1 in the current year.

(6) In case the relevant Retailers can not carry out the distribution of Subsidized Fertilizer in the area of responsibility, Distributors can perform distribution of Subsidized Fertilizer directly for a certain period to farmers and/or Farmer Group based on RDKK with a price not to exceed HET, after coordination with the Head District / Municipality Agency in charge of agriculture.

Article 11

(1) In implementation of the distribution of Subsidized Fertilizer, Distributor appoint a private company or business entity, whether incorporated or not a legal entity as a retailer after obtaining approval from the Producer with the responsibility of distribution of Subsidized Fertilizer in specified District/Village based on SPJB.

(2) Retailers who is appointed by the Distributor must meet following requirements:

(3) The working relationship of Distributor with Retailer are regulated by SPJB according to the General Conditions Making SPJB of Subsidized Fertilizer between Distributor with Retailer as stated in Attachment I of this Ministerial Regulation.

(4) Retailers must carry out the distribution of Subsidized Fertilizer according to principle 6 (six) rights, they are right type, quantity, price, place, time, and quality in line IV to the Farmer and/or farmer groups based on RDKK.

(5) Duties and responsibilities of retailers are as follows:

(6) Retailers can only perform the redemption of Subsidized Fertilizer from 1 (one) Distributor that appointed them according to each type of Subsidized Fertilizer.

Article 12

(1) Producers shall sell Subsidized Fertilizer to the Distributor in Line III Producer Warehouse at a price by calculated HET.

(2) Subsidized Fertilizer Distributor must sell to retailers at a price by calculate HET and implement transport up to Line IV Retailers warehouse.

(3) To implement transport of Subsidized Fertilizer, Distributor use transportations that are listed on the Producers by put special identity as the transportation of Subsidized Fertilizer.

(4) Retailers shall sell Subsidized Fertilizer to the Farmer and/or Farmer Group in Line IV warehouse based on RDKK at a price not to exceed the HET.

(5) Subsidized Fertilizer as intended in paragraph (1), paragraph (2), and paragraph (4) determined by the Minister that conducted the government affairs in agriculture.

Article 13

(1) Distributors and retailers are prohibited from trade in outside the allotment of Subsidized Fertilizer and/or outside the area of responsibility.

(2) Parties other than Producer, Distributors, and Retailers are prohibited from trade in Subsidized Fertilizer.

CHAPTER III
REPORTING

Article 14

(1) PT. Pupuk Sriwidjaja (Persero) shall submit reports of procurement, distribution and availability of the domestic stock of Subsidized Fertilizer for agricultural sector every month, including problems and efforts to solve them, to the Director General of Domestic Trade, Ministry of Trade with a copy to:

(2) In condition which would suggest there is a shortage of Subsidized Fertilizer, PT. Pupuk Sriwidjaja (Persero) shall promptly submit a report on the problems faced and the efforts that have been implemented to solve them, address to the Director General of Domestic Trade, Ministry of Trade, Director General of the Manufacturing Industry Base, the Ministry of Industry, Director General of Agriculture Infrastructure and Structure, Ministry of Agriculture.

Article 15

(1) Distributor shall submit a report of distribution and procurement Subsidized Fertilizer held by them every month regularly to the Producer with copies to:

(2) The report form as intended in paragraph (1) is stated in Attachment III of this Ministerial Regulation.

Article 16

(1) Retailers shall report the realization of the distribution and supply of Subsidized Fertilizer every month regularly to the Distributor with a copy to the District / Municipality Agency in charge of trade and agriculture.

(2) The report form as intended in paragraph (1) is stated in Attachment IV of this Ministerial Regulation.

CHAPTER IV
SUPERVISION

Article 17

(1) Monitoring of the procurement and distribution of Subsidized Fertilizer include the type, quantity, price, place, time, and quality.

(2) The supervision as intended in paragraph (1) is as follows:

(3) The authority of clarification on the indication of deviation from the provisions of legislation governing the procurement and distribution of Subsidized Fertilizer by PT. Pupuk Sriwidjaja (Persero), Producers, Distributors, and Retailers done by:

(4) In case there is strong evidence to the violation of which may be subject to criminal economic sanctions, Officials as intended in paragraph (3) may use the assistance of law enforcement officers in accordance with regulations.

CHAPTER V
SANCTIONS

Article 18

(1) In case PT. Pupuk Sriwidjaja (Persero) violates the provisions as intended in Article 2 paragraph (5), Article 3, Article 4, Article 5, Article 6 paragraph (4) and Article 14 subject to administrative sanctions in the form of a written warning from the Minister.

(2) In case PT. Pupuk Sriwidjaja (Persero) does not comply with a written warning as intended in paragraph (1), within a period of 1 (one) month from the date of the warning letter is received, the Minister recommend in writing to the minister conducting the government affairs in agriculture to suspend or not to pay subsidies.

Article 19

(1) Producers who violate the provisions of Article 7 paragraph (1), paragraph (6) and paragraph (8), Article 9 paragraph (1) and paragraph (3) and Article 12 paragraph (1) subject to administrative sanctions in the form of a written warning of Governors.

(2) Producers who do not comply with a written warning as intended in paragraph (1), within a period of 1 (one) month from the date of the warning letter is received, the Governor recommends in writing to the PT. Pupuk Sriwidjaja (Persero) to suspend or not to pay the subsidy, with copies to the Director General of Domestic Trade Ministry of Trade and Director General of Infrastructure and Facilities of Agriculture Ministry of Agriculture.

Article 20

(1) The distributor who violates the provisions as intended in Article 10 paragraph (1) and paragraph (2) g and i, Article 12 paragraph (2) and Article 15 paragraph (1) subject to administrative sanctions in the form of a written warning from the Regent/Mayor through Agency in charge of trade.

(2) If the distributor does not comply with a written warning as intended in paragraph (1) within a period of 2 (two) weeks from the date of the warning letter, then it may be penalized in the form of the final written warning from the Regent/Mayor in this case the Fertilizers and Pesticides Control Commission on district/city level.

(3) If the distributor does not comply with the final written warning as intended in paragraph (2) within a period of 2 (two) weeks from the date of the warning letter, the Regent/Mayor in this case the Fertilizers and Pesticides Control Commission in the Regency/City may recommend a writing to:

Article 21

(1) Retailers who violate the provisions as intended in Article 11 paragraph (4) and paragraph (5) f and g, Article 12 paragraph (4) and Article 16 paragraph (1) subject to administrative sanctions in the form of a written warning from the Regent/Mayor Agency in charge of trade.

(2) If the retailer does not comply with a written warning as intended in paragraph (1) within a period of 2 (two) weeks from the date of the warning letter, then it may be penalized in the form of the final written warning from the Regent/Mayor in this case the Fertilizers and Pesticides Control Commission on district/city level.

(3) If the retailer does not comply with the final written warning as intended in paragraph (2) within a period of 2 (two) weeks from the date of the warning letter, the Regent/Mayor in this case the Fertilizers and Pesticides Control Commission in the Regency/City may recommend a writing to:

Article 22

(1) Distributors and retailers as intended in Article 10 paragraph (2) d and Article 13 paragraph (1) are traded Subsidized Fertilizer not for its allocation and/or outside the area of responsibility imposed sanctions in accordance with the provisions of the legislation.

(2) The other party as intended in article 13 paragraph (2) which traded Subsidized Fertilizer penalized in accordance with the provisions of the legislation.

Article 23

In case the PT. Pupuk Sriwidjaja (Persero), Producers, Distributors, and/or retailers do not carry out the duties, responsibilities, and obligations as stated in this Ministerial Regulation and led to shortages of Subsidized Fertilizer in specified area subject to sanctions in accordance with the provisions of the legislation.

CHAPTER VI
OTHER PROVISIONS

Article 24

(1) Distributors and Retailers who have been appointed under the provisions of Regulation of the Minister of Trade No. 21/M-DAG/PER/6/2008 as amended by Regulation of the Minister of Trade No. 07/M-DAG/PER/2/2009 shall remain designated as a Distributor and/or Reseller.

(2) Distributor and/or Reseller as intended in paragraph (1) if not carrying out duties responsibilities and obligations as stated in this Ministerial Regulation will be evaluated by the Producer or Distributor.

CHAPTER VII
CLOSING PROVISION

Article 25

At the time this regulation comes into force, the Regulation of the Minister of Trade No. 21/M-DAG/PER/6/2008 concerning Procurement and Distribution of Subsidized Fertilizer as amended by Regulation of the Minister of Trade No. 07/M-DAG/PER/2/2009 concerning Amendment to the Regulation of the Minister of Trade No. 21/M-DAG/PER/6/2008 concerning Procurement and Distribution of Subsidized Fertilizer For Agriculture Sector, revoked and declared invalid.

Article 26

Stipulated in JAKARTA
on February 16, 2006
MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA
signed,
MARI ELKA PENGESTU


Attachment I Regulation of the Minister of Trade R.I.
Number: 17/M-DAG/PER/6/2011
Date: June 15, 2011