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LAW OF THE REPUBLIC OF INDONESIA
NUMBER 13 OF 2010

CONCERNING
HORTICULTURE

BY THE GRACE OF ALMIGHTY GOD
THE PRESIDENT OF THE REPUBLIC OF INDONESIA,

Considering:

a. that land, water and natural resources in the territory of the Republic of Indonesia are the give of the Almighty Lord to be used and utilized for the greatest prosperity and welfare of the people of Indonesia as mandated in the Constitution of the Republic of Indonesia of 1945;

b. that horticultural plants as biological wealth is one of Indonesia's natural resources that is very important as a source of nutritious food, plant drugs ingredients, and aesthetic, useful and plays a major role in improving the quality of community’s life, which need to be managed and developed in an efficient and sustainable manner;

c. that the existing rule is not able to provide legal certainty in the development of horticulture in according with the development and request of the community;

d. that based on consideration as intended in paragraphs a, b and c, it is necessary to issue Law concerning Horticulture;

In view of:

Article 5 paragraph (1) and Article 20 of the Constitution of the Republic of Indonesia1945;

By joint approval of
THE HOUSE OF REPRESENTATIVES OF THE REPUBLIC OF INDONESIA
and
THE PRESIDENT OF THE REPUBLIC OF INDONESIA

DECIDES:

To stipulate:

LAW CONCERNING HORTICULTURE

CHAPTER I
GENERAL PROVISIONS

Article 1

In this Law:

1. Horticulture is everything related with fruit, vegetables, plant drug ingredients, and floriculture, including mold, mildew, and water plants that serve as vegetables, plant drug ingredients, and/or aesthetic materials.

2. Horticulture business is all activities to produce products and/or conduct services related to horticulture.

3. Horticultural plants are plants that produce fruit, vegetables, plant drug ingredients, floriculture, including mold, mildew, and water plants that serve as vegetables, plant drug ingredients, and/or aesthetic materials.

4. Horticultural products are all the results derived from horticultural plants that are still fresh or have been processed.

5. Horticulture services are activities such as business and services that result products, facilities, or other benefits from horticulture that can be consumed.

6. Horticulture zoning is the determination of zone for the development of horticulture business by take attention to the biophysical condition of existing potential of area.

7. Horticultural zone is distribution area of horticultural businesses that is unified by specific binding factors such as factors of natural, socio cultural, and artificial physical infrastructure.

8. Horticulture Farming Business Unit is a unit of area for the implementation of horticulture plant cultivation activities on the land and/or other growing media in appropriate ecosystem with the help of science and technology.

9. Horticultural genetic resources are the ingredients from horticultural plants containing functional units of heredity that have actual or potential value.

10. Horticultural infrastructure is everything that becomes a major supporting horticulture business.

11. Horticulture structure is anything that can be used as a tool and/or materials required in the horticulture business.

12. Horticultural seeds hereinafter called as seeds, are horticultural plants or parts thereof that are used to reproduce and/or breeding of horticultural plants.

13. Plant disturbance organisms, hereinafter called as OPT, is all the organisms that may damage, interfere with life, or cause death of plant.

14. OTP control materials are synthetic chemical materials, natural or not synthetic materials, living bodies, and other materials used to control OPT in horticulture business.

15. Horticultural plant breeding, hereinafter called as breeding, is a series of activities to maintain the purity of the species and/or varieties of existing horticulture plants or produce new better type and/or varieties of horticultural plants.

16. Variety of horticultural plant is part of a horticultural plant species that is characterized by the shape of the plant, growth, leaves, flowers, fruits, seeds, and other characteristics that can be distinguished in the same type.

17. Horticultural plant variety protection is the special protection given by the state, in this case represented by the Government and its implementation by the office of plant variety protection to the varieties of plants produced by plants breeder through plant breeding.

18. Horticulture base agro tourism, hereinafter called as agro tourism, is an area or horticulture business development activities as a tourist attraction, either alone or as part of a wider tourist area with the other tourist attractions.

19. Horticulture distribution, hereinafter called as distribution, is the distribution activities, share, and delivery of the horticultural products from production place to the markets and/or consumers.

20. Certification is the process of granting certificate to horticulture entrepreneurs, products, processes, and businesses.

21. Accreditation is a process of recognition of the competence of an agency or institution to conduct certification.

22. The partnership is a cooperation of the business relationship based on the principle of mutual need, trust, strengthen, and benefit involving among entrepreneurs.

23. Processing is the process of changing the physical, chemical, and biological horticulture commodity materials into a form of derivative products.

24. Any person is an individual or a corporation, whether incorporated or not incorporated.

25. Corporation is a group of people and/or assets are organized, whether incorporated or unincorporated.

26. Horticulture entrepreneurs hereinafter called as entrepreneurs are farmers, farmers' organizations, other individuals, or companies that do horticulture business, whether incorporated or incorporated form and domiciled in the territory of the Republic of Indonesia.

27. Horticulture farmers hereinafter called as farmers are individuals Indonesian citizens and their families that manage the horticulture cultivation unit.

28. Horticulture trainers hereinafter called as trainers are individual Indonesian citizens conduct training.

29. The central government, hereinafter called as Government is the President of the Republic of Indonesia, which holds the power of the government of the Republic of Indonesia as intended in the Constitution of the Republic of Indonesia of 1945.

30. Local government is a governor, regent/mayor, and regional official as the element of the regional administration.

31. Minister is the minister who has duties and responsibilities in the field of horticulture.

CHAPTER II
PRINCIPLES, OBJECTIVES AND SCOPE OF ARRANGEMENT

Article 2

Horticulture implementation based on the principles of:

Article 3

Objectives of horticulture implementation are to:

Article 4

The scope of the horticulture implementation includes:

CHAPTER III
HORTICULTURE PLANNING

Article 5

(1) Horticultural planning is done to design the construction and development of sustainable horticulture.

(2) Horticulture planning as intended in paragraph (1) shall pay attention to:

Article 6

(1) Horticulture planning as intended in Article 5 paragraph (1) includes aspects of:

(2) Planning aspects as intended in paragraph (1) is a unity and have a connection between one and the others.

Article 7

(1) Horticulture planning is an integral part of national development planning, regional development planning, and sector development planning.

(2) Horticulture planning as intended in paragraph (1) conducted by the Government and/or the local government by involving community.

(3) The horticulture planning as intended in paragraph (2) arranged at the national, provincial, and/or regency/municipality levels.

(4) Horticulture planning is determined in long term development plan, medium term development plan and annual plan at the national, provincial, or regency/municipality levels in accordance with the provisions of the regulation.

Article 8

(1) National horticultural planning is done by considering to the national development plan and the needs and suggestions from the province.

(2) Provincial horticulture panning is done by considering to the provincial development plan as well as needs and proposal of regency/municipality.

(3) Horticulture planning in regency/municipality level is done by considering regency/municipality development plan.

Article 9

(1) Horticulture planning is manifested in the form of a horticulture plan.

(2) Horticulture plan as intended in paragraph (1) shall consist of:

(3) Horticulture plan as intended in paragraph (2) prepared by the Minister, governor or regent/mayor in accordance with the provisions of the regulation.

Article 10

(1) National horticulture plan serves as guidelines to prepare provincial horticulture plan.

(2) Provincial horticulture plan serves as guidelines to prepare regency/municipality horticulture plan.

(3) Regency/municipality horticulture plan serves as guidelines to prepare local horticulture development.

(4) National horticulture plan, provincial horticulture plan, and regency/municipality horticulture plan as a guideline for the entrepreneurs in the development of horticulture.

CHAPTER IV
RESOURCES UTILIZATION AND DEVELOPMENT

Part One
General

Article 11

(1) Horticultural resources consist of:

(2) Human resources as intended in paragraph (1)a consist of entrepreneurs, horticulture trainer, and others parties related with horticulture service and business activities.

(3) The natural resources as intended in paragraph (1) b are in the form of:

(4) The artificial resources as intended in paragraph (1) c are in the form of infrastructure and horticulture.

Article 12

(1) The natural resources as intended in Article 11 paragraph (3) and artificial resources as intended in Article 11 paragraph (4) are utilized in an efficient, environmentally friendly, and sustainable.

(2) The use of artificial resources as intended in paragraph (1) prioritizes the containing domestic production components.

Part Two
Human Resources

Article 13

(1) The Government and the local government are obliged to improve their skills and skills of horticultural human resources to meet the standard of competency.

(2) The standard of competence as intended in paragraph (1) through education and training in stages.

(3) In addition to the government and local governments, business entities are accredited to conduct education and training as intended in paragraph (2).

(4) In order to meet the standard of competence as intended in paragraph (1) may be through certification of competencies.

(5) Certification of competence conducted by an accredited institution in accordance with the provisions of the regulation.

(6) Further provisions on the provision of education, training, and certification of competence are arranged by the Ministerial Regulation.

Article 14

(1) The Government and the local government are obliged to organize horticulture training.

(2) Entrepreneurs can organize horticulture training.

(3) Horticulture training as intended in paragraphs (1) and (2) conducted by a certified trainer.

(4) The local government in the implementation of horticulture training as intended in paragraph (1) shall provide at least one trainer of government employee or at least one private trainer and/or self organization in each of the village in the horticultural zone.

(5) Implementation of horticulture training is implemented in accordance with the provisions of the regulation.

Article 15

(1) Entrepreneurs shall give priority to the use of domestic human resources.

(2) The human resources from abroad can be hired in case of lack of domestic human resources who have expertise and specific skills in the field of horticulture.

(3) The human resources from abroad as intended in paragraph (2) hired in accordance with the provisions of the regulation after getting a recommendation from the association of entrepreneurs.

(4) Further provisions on the qualifications of expertise and specific skills in the field of horticulture as intended in paragraph (2) shall be governed by the Ministerial Regulation.

Part Three
Natural Resources

Paragraph 1
Land

Article 16

(1) Horticulture cultivation land consisting of open land and closed land by using soil and/or other growing media.

(2) Horticultural cultivation land must be protected, maintained, restored, and improved the function by entrepreneurs.

(3) Further provisions on the protection, maintenance, restoration, and improvement of horticultural cultivation functions shall be governed by the Ministerial Regulation.

Article 17

Using horticulture Cultivation land shall give priority to preservation of the environment in accordance with the provisions of the regulation.

Article 18

Government, local government, and/or entrepreneurs may develop the use of growing media other than soil for cultivation of horticulture.

Paragraph 2
Climate

Article 19

(1) The Government and local government are obliged to monitor, evaluate, forecast, file, and map the climate patterns for the development of horticulture.

(2) The results of monitoring, evaluation, forecasting, filling, and mapping of climate patterns as intended in paragraph (1) is socialized openly to the community.

(3) The results of monitoring, evaluation, forecasting, filling, and mapping of climate patterns as intended in paragraph (1) become a reference for horticultural planning and business development of horticulture.

Article 20

(1) Government and/or the local government to provide assistance to micro and small entrepreneurs that experienced plantation failure due to disasters caused by changes in climate patterns.

(2) Assistance as intended in paragraph (1) carried out based on determination of disaster area status by the Government in accordance with the provisions of the regulation.

(3) The assistance provided by the Government as intended in paragraph (1) shall be based on the proposal of the local government.

(4) Further provisions on the assistance as intended in paragraphs (1), (2), and (3) shall be governed by Ministerial Regulation.

Paragraph 3
Water Resources

Article 21

Water for horticultural businesses must meet water quality standards in accordance with the provisions of the regulation.

Article 22

Use of water for horticulture business conducted together with other needs in efficiently by the entrepreneurs by prioritizing basic daily needs of people in accordance with the provisions of the regulation.

Article 23

Government and local authorities responsible for:

Paragraph 4
Genetic Resources

Article 24

Horticultural genetic resources shall be protected, conserved, enriched, used, and developed in accordance with the provisions of the regulation.

Article 25

(1) Government taking inventory, registration, documentation, and maintenance of horticultural genetic resources.

(2) Inventory, registration, documentation, and maintenance of horticultural genetic resources as intended in paragraph (1) can be done in cooperation with the community.

(3) Horticultural genetic resources documentation data are open for community to be exploited and developed.

(4) Openness of documentation data as intended in paragraph (3) shall be exempted for the data declared confidential by the provisions of regulation.

Article 26

(1) The utilization of horticultural genetic resources as intended in Article 24 carried out in a sustainable and continuously.

(2) The Minister shall determine horticultural genetic resources are endangered by considering the nature, quantity, and distribution.

(3) Utilization of the genetic resources of endangered done with the permit of the Minister.

Article 27

(1) The Government encourages the enrichment of national horticultural genetic resources through a variety of methods and introduction.

(2) The government provides facility of licensing and use of government owned research facilities for the enrichment of the national horticultural genetic resources.

Article 28

(1) Import and export of horticultural genetic resources to and from the Republic of Indonesia is implemented in accordance with the provisions of the regulation.

(2) Any person is prohibited to export varieties of endangered horticultural genetic resources and/or which could harm the national interests from the Republic of Indonesia.

(3) Further provisions on the horticultural plant varieties that export from the territory of the Republic of Indonesia can harm to the national interest as intended in paragraph (2) shall be governed by the Ministerial Regulation.

Article 29

It is forbidden:

Article 30

(1) Genetic resources that produce products that have characteristics related to a particular geographic area are protected for preservation and shall be utilize by geographical indications right.

(2) The provisions on the geographical areas of genetic resources as intended in paragraph (1) shall be governed in accordance with the regulation.

Part Four
Artificial Resources

Paragraph 1
Horticulture Infrastructure

Article 31

(1) Horticulture infrastructure consists of:

(2) Horticulture infrastructure as intended in paragraph (1) was built in an integrated and planned.

Paragraph 2
Horticulture Structure

Article 32

(1) Horticulture structure consists of:

(2) The use of horticultural structure as intended in paragraph (1) developed by technology that pay attention to the climatic, land conditions, and environmentally friendly.

Article 33

(1) Horticulture business conducted with emphasis on the use of domestic horticultural structure.

(2) In case of horticulture structure is inadequate or not available it can use overseas horticultural structure.

(3) Horticultural structure from overseas as intended in paragraph (2) shall be:

Article 34

(1) Government and/or local governments provide incentives to entrepreneurs to produce horticultural structure that can not be produced domestically.

(2) Incentive as intended in paragraph (1) in the form of licensing facilities, convenience facilities, ease of access to financing, and/or tax intensive.

(3) Provisions concerning incentives are governed by regulation.

Article 35

(1) Distributed horticulture structure shall meet quality standards and registered.

(2) In case of horticulture structure is or contains genetically modified result, in addition to meeting the provisions of paragraph (1), distribution shall comply with the provisions of regulations in the field of bio safety.

(3) If the quality standard as intended in paragraph (1) has not been established, the Minister determined the minimum technical requirements.

(4) The provisions as intended in paragraphs (1) and (3) are exempt for the local production of horticultural structure are distributed finite in one group.

(5) Further provisions on the procedure for quality test and registration shall be governed by the Ministerial Regulation.

Article 36

(1) For horticulture structure products which have Indonesian National Standard, the manufacturer shall include Indonesia National Standard label on the horticulture structure product are distributed as intended in Article 35 paragraph (1).

(2) For horticulture structure has not been established Indonesia National Standard, the producer shall include a label on the horticulture structure products that are distributed.

(3) The label as intended in paragraph (2) must be in the Indonesian language and at least contain:

(4) The provisions on labeling as intended in paragraph (2) are governed by the provisions of the regulation.

Article 37

Producers, distributors, and retailers, individually or jointly, shall be liable for the suitability of the products are distributed to specified requirements.

Article 38

Producers and/or distributors of horticulture tools and machinery are obliged to socialize on the manner of use, safety, maintenance, and repair of tools and machinery.

Article 39

Any person who does the procurement, distribution, and use of horticultural structure must pay attention to safety and social culture of community, cultivation systems, natural resources, and/or function of the environment.

CHAPTER V
HORTICULTURE DEVELOPMENT

Part One
Horticulture Zoning

Paragraph 1
General

Article 40

(1) Horticulture managed throughout the territory of the Republic of Indonesia, held in a separate area, mixed with other plants, and/or integrated with other business areas.

(2) The horticulture management as intended in paragraph (1) shall pay attention to spatial plans.

(3) The horticulture management as intended in paragraph (1) is in outside of the core zone of the conservation area.

Article 41

(1) Determination of spatial structure in relation to the development of horticulture must ensure the preservation of natural resources, environmental functions, and public safety, as well as aligned with the other activities interests.

(2) In case of changes in the spatial structure as intended in Article 40 paragraph (2) which resulted in the change functions of horticultural zone, government and/or local government shall provide the equivalent replacement zone first.

Article 42

(1) Government and/or local governments facilitate the implementation of horticultural integrate with other activities.

(2) Facilitation as intended in paragraph (1) include:

Article 43

(1) Government and/or the local government set a superior product that will be developed in the horticultural zone.

(2) Superior horticultural products as intended in paragraph (1) must have the potential competitiveness and attention to local policy.

(3) To the superior horticultural products had been established, Government and/or the local government is obliged to ensure the availability of:

(4) Further provisions on the procedures and requirements for determination of superior horticultural products shall be governed by the Ministerial Regulation.

Paragraph 2
Horticultural Zone

Article 44

(1) Government and/or local governments plan and set a horticultural zone.

(2) The horticultural zone is carried out with due respect:

Article 45

(1) Horticultural zone as intended in Article 44 paragraph (1) shall consist of:

(2) Horticultural zone as intended in paragraph (1) shall pay attention to the national spatial plan, the provincial spatial plans, and regency/municipality spatial plans.

(3) National horticultural zone is determined by the Government, the provincial horticultural zone is determined by the provincial government, and the regency/municipality horticultural zone is determined by the regent/mayor.

Article 46

(1) Government and/or local governments in determining horticultural zone as intended in Article 44 paragraph (1) is obliged to ensure the availability of:

(2) In addition to ensuring the availability as intended in paragraph (1) Government and/or local government shall:

Article 47

Development of horticulture carried out in an integrated by involved community.

Paragraph 3
Horticulture Cultivation Business Units

Article 48

(1) Classification of horticultural cultivation business units consist of:

(2) Further provisions on the classification of horticulture cultivation business unit as intended in paragraph (1) shall be governed by the Ministerial Regulation.

Article 49

(1) Micro and small horticulture cultivation business unit as intended in Article 48 paragraphs (1) a and b shall be recorded by the local government.

(2) Medium horticulture cultivation business unit as intended in Article 48 paragraph (1) c and large horticultural cultivation business unit as intended in Article 48 paragraph (1) d must have a business permit issued by the Government and local government in accordance with the authority.

(3) In addition to the business permit must be completed as intended in paragraph (2), medium and large horticulture cultivation business unit that use state owned land shall has business using rights in accordance with the regulation.

(4) Further provisions on the recording and licensing of horticulture cultivation business unit shall be governed by Ministerial Regulation.

Part Two
Horticultural Business

Paragraph 1
General

Article 50

(1) The horticulture business includes:

(2) The horticulture business as intended in paragraph (1) may be made by any entrepreneur.

Article 51

(1) Horticulture business divided into micro, small, medium, and large businesses.

(2) Further provisions on the criteria of micro, small, medium, and large businesses shall be governed by the Ministerial Regulation.

Article 52

(1) Horticulture business as intended in Article 50 shall be registered.

(2) Registration as intended in paragraph (1) conducted by the Government and/or local governments.

(3) Further provisions on the registration of horticultural business shall be governed by the Ministerial Regulation.

Article 53

(1) Micro, small and medium horticulture business only can be held by an Indonesian citizen or business entity wholly owned by Indonesian citizens.

(2) A large horticultural business can be held by domestic entrepreneur, either alone or jointly with foreign entrepreneur to form an Indonesian legal entity under Indonesian law and domiciled in Indonesia.

Article 54

(1) Entrepreneurs in implementing the horticulture business are required to meet the process standards or minimum technical requirements.

(2) Entrepreneurs in producing horticultural products must meet the standards of quality and safety of horticultural products.

(3) Government and/or the local government to foster and facilitate the development of horticulture business shall meet the standards process and the minimum technical requirements, quality standards and food safety of horticultural products.

(4) Further provisions on the implementation of process standards and the minimum technical requirements as intended in paragraph (1), standards of quality and safety of horticultural products as intended in paragraph (2), and the fostering and facilitation of the development of horticulture as intended in paragraph (3) shall be governed by Ministerial Regulation.

Article 55

(1) Government and/or local governments prioritize to give facilities and incentives to:

(2) Further provisions on the provision of facilities and incentives are governed by Government Regulation.

Article 56

(1) Horticulture business can be done with pattern of partnerships.

(2) The pattern of partnership as intended in paragraph (1) involving micro, small, medium, and large horticulture businesses.

(3) Large entrepreneurs as intended in paragraph (2) shall do partnership with the micro, small and medium enterprises.

(4) Partnership as intended in paragraph (2) is implemented with the patterns of:

(5) Further provisions on the partnership as intended in paragraph (1) shall be governed by the Ministerial Regulation.

Paragraph 2
Seeding Business

Article 57

(1) Seeding business includes breeding, seed production, certification, seed distribution, as well as export and import seed from and into the territory of the Republic of Indonesia.

(2) In case of breeding as intended in paragraph (1), can do the introduction in the form of seeds or parent material that does not exist in the territory of the Republic of Indonesia.

(3) The seeding can only be done by entrepreneurs who have a certificate of competency or business entity certified in the field of seeding by must apply seeds quality assurance through the application of certification.

(4) Provisions on the certificate of competency or business entity certified and obligations applying seed quality assurance as intended in paragraph (3), is exempted for individual or group entrepreneur doing seeding business for itself and/or limited within 1 (one) group.

(5) Further provisions on seeds production, certification, seeds distribution and export and import seeds as intended in paragraph (1), introduction as intended in paragraph (2), certification of competence, business entity certification and quality assurance as intended in paragraph (3), with the exception of the application of the obligation as intended in paragraph (4) shall be governed by the Ministerial Regulation.

Article 58

(1) The results of breeding and the introduction of a new variety shall be registered to the Government.

(2) In case of breeding and new varieties are introduced by using genetic engineering technology, the registration and circulation must meet bio safety requirements in accordance with the provisions of the regulation.

(3) Further provisions on the breeding, introduction and registration as intended in paragraph (1) shall be governed by the Ministerial Regulation.

Article 59

(1) The truth of variety will be circulated is tested by an accredited or appointed testing agency.

(2) Certain plant species are exempt from the requirements of the test of truth as intended in paragraph (1).

(3) Further provisions on the requirements and procedures for testing, testing agencies, and types are excluded, be shall be governed by the Ministerial Regulation.

Article 60

(1) Launching of variety and distribution of seed that have been registered are the responsibility of the owner or its attorney.

(2) The seeds are distributed as intended in paragraph (1) shall meet the variety truth and seed standard quality.

(3) Further provisions on the requirements and procedures for launching of varieties as intended in paragraph (1) shall be governed by the Ministerial Regulation.

Article 61

Horticultural plant varieties protection is implemented in accordance with the provisions of the regulation.

Article 62

(1) Government and/or local government do supervision of procurement, distribution and use of seeds.

(2) The supervision as intended in paragraph (1) conducted by the seeds supervisor

(3) Further provisions on supervision as intended in paragraphs (1) and (2) shall be governed by the Ministerial Regulation.

Article 63

(1) Import and export seeds to and from the territory of the Republic of Indonesia must obtain a permit.

(2) Importation of seed into the territory of the Republic of Indonesia for commercial purposes must meet specified quality requirements.

(3) Importation of seed into the territory of the Republic of Indonesia for commercial purposes is only allowed if it can not be produced domestically or domestic needs have not been met.

(4) Further provisions on the import and export of the seed to and from the territory of the Republic of Indonesia as intended in paragraphs (1), (2), and (3) shall be governed by the Ministerial Regulation.

Article 64

Government and/or the local government to facilitate the development of seed-based national genetic resources.

Paragraph 3
Cultivation

Article 65

Horticulture cultivation done by considering:

Article 66

(1) Entrepreneurs can decide their own cultivation of horticultural plants choice.

(2) Micro and small horticulture cultivation entrepreneurs shall be recorded on the types, number of plants and/or land area that is and will be cultivated by the competent agency.

(3) Medium and large horticulture cultivation entrepreneur are required to report the type, number of plants, and/or land which is and will be cultivated to the Government and/or local governments.

(4) Data collection as intended in paragraph (2) and the reporting procedure as intended in paragraph (3) with purpose to determine the production forecasts.

Article 67

(1) Cultivation of kinds horticultural plants are detrimental to public health can be done for the health and/or science interest, unless otherwise stipulated by the Law.

(2) Cultivation as intended in paragraph (1) must obtain special permit from the Minister.

Article 68

Further provisions on the cultivation as intended in Article 65, the data collection and reporting procedures as intended in Article 66, and the special permit requirement as intended in Article 67 paragraph (2) shall be governed by the Ministerial Regulation.

Paragraph 4
Harvest and Post Harvest Business

Article 69

(1) The harvest and post harvest business to achieve maximum results, fulfill product quality standards, pressing loss and/or damage, as well as increase the value added to the handling, processing, and transportation of horticultural products.

(2) The harvest and post harvest business as intended in paragraph (1) through good harvest and post harvest activities.

(3) Post harvest activities as intended in paragraph (2) can only be done on the ward or in the post harvest that meet sanitary requirements.

(4) Further provisions on the procedure for good harvesting and post harvest activities as intended in paragraph (2), and post harvest ward or place that meets the sanitary requirements as intended in paragraph (3) shall be governed by the Ministerial Regulation.

Paragraph 5
Processing Business

Article 70

(1) The business of processing of horticultural products must meet quality standards in accordance with the provisions of the regulation.

(2) Government and/or the local government are obliged to give fostering of local processing of horticultural products which do not meet standards of quality and food safety.

Article 71

Large horticulture product processing business shall use local horticultural products.

Paragraph 6
Distribution, Trade and Marketing Business

Article 72

(1) The distribution business undertaken to distribute, share and deliver horticulture products from horticulture cultivation to the consumer.

(2) In distribution, sharing, and delivery of products as intended in paragraph (1) entrepreneurs shall use logistics system to maintain the freshness, quality, food safety, and appropriateness of the amount and timing of supply of horticultural products.

(3) The distribution at least supported by transportation and warehousing facilities as well as transportation and information system.

(4) Distribution entrepreneurs shall comply with the standard of facilities management and system as intended in paragraph (3).

(5) The Government and local authorities are obliged to provide fostering on the distribution of horticultural products to meet the standards as intended in paragraph (4).

Article 73

(1) Horticultural products trading business set up process trading between merchants with merchants, and merchants with consumers.

(2) In trading process as intended in paragraph (1), modern market horticultural products trading entrepreneur shall trade domestic horticultural products.

(3) Horticulture product trading entrepreneurs shall apply products classification system based on standards of quality and standards of price in a transparent.

(4) Further provisions on the obligation to trade in domestic horticultural products as intended in paragraph (2), and obligation for the classification system of the products based on standards of quality and standards of price in a transparent as intended in paragraph (3) shall be governed by the Ministerial Regulation.

Article 74

(1) Horticultural marketing business through the promotion of products and services as well as the dissemination of market information, nationally and/or internationally.

(2) Marketing entrepreneurs shall give priority to the marketing of domestic horticultural products and services.

Article 75

(1) Government and/or the local government are obliged to provide fostering for any horticultural marketing businesses.

(2) Fostering as intended in paragraph (1) has purpose that every entrepreneur has the ability to apply good marketing procedure.

(3) Further provisions on the implementation of good marketing procedure as intended in paragraph (2) shall be governed by the Ministerial Regulation.

Paragraph 7
The Research Business

Article 76

(1) Horticultural research business can be done on the business of seeds, cultivation business, harvest and post harvest business, processing business, and distribution business, trading, marketing and agro tourism business.

(2) The horticultural research as intended in paragraph (1) made to get the maximum benefit for the development of horticulture.

(3) The Government, local government, entrepreneurs, and/or the community who use the results of the research as intended in paragraph (1) shall provide a royalty and/or awards to researchers, owners, and/or are the person has righ on the research.

Paragraph 8
Agro Tourism Businesses

Article 77

(1) Horticulture cultivation zone and/or unit can be used and developed for agro tourism business.

(2) The Government, local government, and/or entrepreneurs are managed agro tourist business shall involving local communities.

(3) Agro tourism businesses must consider the preservation of the environment function and local policy.

(4) The Government shall establish norms, standards, guidelines, and criteria of agro tourism.

(5) Government and/or the local government determine horticulture cultivation business zone and/or the unit that becomes agro tourism business

(6) Further provisions on the use and development of the horticulture cultivation business zone and/or unit as intended in paragraph (1), establish norms, standards, guidelines, and criteria for horticultural cultivation business zone and/or unit as intended in paragraph (4) shall be regulated by or based on the Government Regulation.

CHAPTER VI
DISTRIBUTION, TRADE, MARKETING, AND CONSUMPTION

Part One
General

Article 78

Government builds distribution, trading, marketing, and consumption system of horticultural products that ensure the protection of entrepreneurs, consumers, and domestic products.

Part Two
Distribution

Article 79

(1) Distribution conducted to ensure the delivery of horticultural products in order to maintain food security and accuracy of the quantity, quality, and time of supply from producers until the market and/or consumers.

(2) Government and/or the local government ensure smooth distribution with emphasis on transportation services effectively and efficiently in accordance with the provisions of the regulation.

(3) Government and/or the local government give priority to the smooth loading and unloading of horticultural products.

Article 80

(1) Government and/or the local government are obliged to facilitate the distribution of horticultural products effectively and efficiently.

(2) To facilitate the distribution of horticultural products as intended in paragraph (1) are in the form of:

Part Three
Trading

Article 81

(1) Horticultural products can be traded in the market or anywhere else.

(2) Market as intended in paragraph (1) consists of the traditional and modern markets.

(3) Market as intended in paragraph (1) shall be determined by the local government for the display of horticultural products.

(4) Market or other places as intended in paragraph (1) shall meet the requirements of food safety, sanitation, and public order.

Article 82

(1) Horticultural Products can be traded directly to consumers through auction markets and product display.

(2) In addition to trade directly as intended in paragraph (1), horticultural products can be traded indirectly through commodity exchanges and farming contract.

Article 83

(1) Sales and purchases of certain commodities in certain areas conducted in the auction market.

(2) Further provisions on the basis of the determination of specific commodities and areas governed by the Regulation of the Minister.

Article 84

(1) Trade horticultural products through the display of products as intended in Article 82 paragraph (1) shall meet the requirements of food safety, sanitation, and public order.

(2) Provisions on the requirements and procedures for the display of horticultural products as intended in paragraph (1) shall be governed by the Ministerial Regulation.

Article 85

Trade of horticultural products through commodity exchange as intended in Article 82 paragraph (2) shall in accordance with the provisions of the regulation.

Article 86

Trade of horticultural products through farming contract as intended in Article 82 paragraph (2) shall be transparent, fair, and in the form of a written agreement.

Article 87

(1) Export of horticultural products is done by considering the needs of national consumption.

(2) Export of horticultural products must meet the requirements and standards of quality and/or safety.

(3) The Government and local government shall support and facilitate the export of horticultural products.

(4) Further provisions on the requirements and standards of food quality and/or security as intended in paragraph (2) and facilitation of export of horticultural products as intended in paragraph (3) shall be governed by the Ministerial Regulation.

Article 88

(1) Import of horticultural products must consider the aspects of:

(2) Import of horticultural products can be carried out after obtaining permit from the minister who responsible for trade after grants the recommendation from the Minister.

(3) Import of horticultural products as intended in paragraph (1) shall be conducted through the entry points.

(4) Any person is prohibited from distributing imported fresh horticultural products that do not meet certain standards of quality and/or safety.

(5) Further provisions on the procedure for granting the recommendation from the Minister as intended in paragraph (2), procedures for determining the entry points as intended in paragraph (3), and certain imported fresh horticultural products as intended in paragraph (4) shall be governed by Ministerial Regulation.

Part Four
Marketing

Article 89

(1) Government and/or the local government are obliged to organize and facilitate marketing of horticultural products, in or out of the country.

(2) The Minister shall determine the type of plants and/or horticultural products that the export and/or import from and to the territory of the Republic of Indonesia require a permit.

Article 90

Government and/or local government with entrepreneurs shall keep on balance supply and demand of horticultural products at any time up at the local level by:

Article 91

Government and/or local governments are obliged to build a marketing system that effectively and efficiently through the organization of:

Article 92

(1) The market and elsewhere for horticultural products trading shall be given priority to local horticultural products sales.

(2) Operator of markets and other places for the trading of horticultural products as intended in paragraph (1) shall provide adequate marketing facilities.

Article 93

Local government is obliged to assist in the provision of marketing facilities of local horticultural products in traditional markets.

Article 94

Government and/or local government with entrepreneurs promote continuous, inside and outside the country to improve:

Part Five
Consumption

Article 95

Government and local government in charge of increasing the consumption of horticultural community through:

CHAPTER VII
FINANCING, GUARANTEE, AND INVESTMENT

Part One
Financing

Article 96

(1) Financing the implementation of the horticulture by the Government sourced from the state budget of revenues and expenses.

(2) Financing the implementation of horticulture by the local government sourced from the regional budget of revenues and expenses.

(3) Horticultural business financing undertaken by the entrepreneurs sourced from fund of entrepreneurs, financial institutions funds, public funds, and other funds are legitimate.

(4) Government and/or the local government assist financial of the development of horticulture business by entrepreneurs that supports the Government and/or local governments.

(5) Further provisions on the implementation of the financing as intended in paragraphs (1) and (2), business financing as intended in paragraph (3), and the financial assistance as intended in paragraph (4) shall be regulated by Government Regulation.

Article 97

(1) For the development of horticulture business:

(2) The government and/or local governments support the establishment of financial institutions to finance horticulture business in accordance with the provisions of the regulation.

(3) The percentage of the loan portfolio, the use of development budgets to subsidize and/or credit insurance, the determination of the development budget allocation, and the establishment of financial institutions as intended in paragraph (1) and paragraph (2) priority to financing micro and small horticulture business.

(4) Determination of the percentage of the loan portfolio, the use of development budgets to subsidize and/or credit insurance, the determination of the development budget allocation, and the establishment of financial institutions as intended in paragraph (1) and paragraph (2) are implemented in accordance with the provisions of the regulation.

Part Two
Guarantee

Article 98

(1) Government and/or the appropriate local government in their authority support financial institutions owned by the Government, local government, and private sector to provide loans to the entrepreneurs.

(2) Government and/or the local government facilitating micro and small horticulture business to obtain facilities and loans from financial institutions based on business feasibility.

(3) Facilitation as intended in paragraph (2) are in the form of:

Article 99

Horticultural entrepreneurs that store products in warehouses can obtain and utilize the warehouse receipt in accordance with the provisions of regulation.

Part Three
Investment

Article 100

(1) The Government supports investment by prioritizing the domestic investment.

(2) Foreign investment can only be done in the large horticulture business.

(3) The amount of foreign investments is limited to 30% (thirty percent).

(4) Foreign investors as intended in paragraph (2) and paragraph (3) shall place funds in domestic banks for their capital holdings.

(5) Foreign investors as intended in paragraph (2) shall not use the credit from a bank or financial institution owned by the Government and/or local governments.

Article 101

Foreign investment in the horticulture business is required to provide apprenticeship opportunities and technology transfer to the domestic entrepreneurs.

CHAPTER VIII
INFORMATION SYSTEM

Article 102

(1) Horticulture information system includes horticulture collecting, processing, analyzing, storing, presentation, and dissemination of data and information.

(2) Government and/or the local government are obliged to establish, organize, and develop an integrated horticulture information system.

(3) The information system as intended in paragraph (1) at least used for the purposes of:

(4) Government and/or local government obligation as intended in paragraph (2) carried out by the data and information center.

(5) The data and information center as intended in paragraph (4) at least provides data and information on:

(6) The data and information center as intended in paragraph (4) shall be required to update the data and information.

(7) Data and information as intended in paragraph (6) can be accessed easily and quickly by entrepreneurs and community.

(8) Further provisions on information systems shall be governed by the Ministerial Regulation.

Article 103

Government and local government ensure the confidentiality of horticulture business data and information relating to the company or individual data in the process of licensing and/or research of horticultural business.

CHAPTER IX
RESEARCH AND DEVELOPMENT

Article 104

Horticultural research and development must be done on an ongoing basis by the Government, local government, research institutions, educational institutions, entrepreneurs, and/or community in the form of individually or cooperation.

Article 105

Research and development as intended in Article 104 can be done domestically and abroad, with no harm to human health, damaging biodiversity, and the preservation of the environment.

Article 106

Government and/or the local government are obliged to facilitate the use and publication of research results that are beneficial to the development of horticulture.

Article 107

Horticultural research activities can be conducted in a conservation area after obtaining permit from the minister in charge of forestry affairs.

Article 108

(1) Individuals and/or foreign legal entities can make horticultural research for his interests in accordance with the provisions of the regulation.

(2) Individuals and/or foreign legal entities as intended in paragraph (1) in conducting the research shall:

Article 109

(1) The results of research conducted by individuals and/or foreign legal entities to their interests are belonging to their cooperation partners and the government.

(2) Expenses, use and publication of the results of research conducted by individuals and/or foreign legal entities as intended in paragraph (1) shall obtain written approval from the Minister.

Article 110

The Government gives protection of intellectual property rights to the results of research in the field of horticulture in accordance with the provisions of the regulation.

Article 111

(1) The Government and/or local government shall provide incentives for horticulture researcher who are excellent in:

(2) Incentive is given to domestic entrepreneurs, research institutions, and/or educational institutions conducting research of horticulture through national and/or regional superior research program.

(3) Further provisions on the incentives as intended in paragraph (1) and paragraph (2) shall be determined by the Minister.

CHAPTER X
EMPOWERMENT

Article 112

Empowerment of horticulture business includes:

Article 113

Government and local government are obliged to empower micro and small horticulture business.

CHAPTER XI
INSTITUTIONAL

Article 114

(1) The government and/or local government facilitate the establishment of horticulture development agencies.

(2) Horticulture development agencies can be formed at the central, provincial and/or regency/municipality level as needed.

(3) Horticulture development agencies as intended in paragraph (1) are independent, professional, and nonprofit agencies.

(4) Horticulture development agencies consist of elements from:

Article 115

(1) Horticulture development agencies serve as partner with government and local governments in the development of horticulture.

(2) In carrying out the functions as intended in paragraph (1), horticulture development agencies in charge of:

Article 116

Further provisions on the establishment of horticultural development agencies as intended in Article 114 and horticulture development agency duties as intended in Article 115 paragraph (2) shall be governed by the Ministerial Regulation.

CHAPTER XII
SUPERVISION

Article 117

(1) Supervision conducted in order to ensure quality of facilities and/or horticultural products to conform to the quality standards set and to deal with a variety of negative impacts that harm the community.

(2) Supervision as intended in paragraph (1) shall be implemented in stages by the Government, provincial and regency/municipality governments in accordance with their authority by involving the community.

Article 118

(1) Supervision as intended in Article 117 is done through:

(2) In certain circumstances supervision can be done through an examination of the processes and products of horticulture businesses.

(3) Reporting as intended in paragraph (1)a is public information posted and publicly accessible by the community in accordance with the provisions of the regulation.

(4) Monitoring and evaluation as intended in paragraph (1) b shall be made by observing and examining compliance reports with the implementation in the field.

(5) Provisions on the requirements and procedures for the supervision shall be governed by the Ministerial Regulation.

CHAPTER XIII
COMMUNITY PARTICIPATION

Article 119

(1) The horticultural done by involving the community.

(2) The participation of the community as intended in paragraph (1) shall in case of:

(3) The participation of the community as intended in paragraph (2) can be done in the form of give proposals, responses, filing objections, suggestions for improvement, and/or assistance.

Article 120

Community participation as intended in Article 119 may be performed by any persons or businesses.

Article 121

Further provisions on community participation as intended in Article 119 and Article 120 stipulated by the Minister.

CHAPTER XIV
ADMINISTRATIVE SANCTIONS

Article 122

(1) Any person who violates the provisions of Article 15 paragraph (1), Article 36 paragraph (1) and paragraph (2), Article 37, Article 38, Article 54 paragraph (1) and paragraph (2), Article 56 paragraph (3), Article 60 paragraph (2), Article 71, Article 73 paragraph (2) and paragraph (3), Article 81 paragraph (4), Article 84 paragraph (1), Article 88 paragraph (1), Article 92 paragraph (2), Article 100 paragraph (4), Article 101, Article 108 paragraph (2), or Article 109 paragraph (2) subject to administrative sanctions.

(2) The administrative sanctions as intended in paragraph (1) are:

(3) Further provisions on the procedure for the imposition of sanctions, the amount of fines, and the imposition of administrative sanctions mechanism as intended in paragraph (1) and paragraph (2) shall be governed by the Ministerial Regulation.

CHAPTER XV
INVESTIGATION

Article 123

(1) In addition to the police officers of the Republic of Indonesia, certain civil government employees official whose tasks and responsibilities in the field of horticulture can be granted special authority as investigators as intended in Law Number 8 of 1981 concerning Criminal Proceedings, to conduct an investigation of a criminal offense in the field of horticulture.

(2) Civil government employee investigator as intended in paragraph (1) shall be authorized to:

(3) Civil government employee investigators as intended in paragraph (1) notify the start of the investigation to the police investigation authorities of the Republic of Indonesia.

(4) If the implementation of authority as intended in paragraph (2) requires the action of arrest and detention, civil government employee investigator to coordinate with the police investigation authorities of the Republic of Indonesia in accordance with the provisions of the regulation.

(5) Civil government employee investigator as intended in paragraph (1) present the results of the investigation to the public prosecutor over police investigation authorities of the Republic of Indonesia.

(6) Appointment of civil government employee official and procedure as well as the investigation process conducted in accordance with the provisions of the regulation.

CHAPTER XVI
PENALTY PROVISIONS

Article 124

Anyone export a variety of horticultural genetic resources are endangered and/or which could harm the national interests from the Republic of Indonesia as intended in Article 28 paragraph (2) shall be punished with imprisonment of 2 (two) years or a fine of maximum Rp2,000,000,000.00 (two billion rupiah).

Article 125

(1) Anyone who traded horticultural genetic resources cultivation materials are endangered as intended in Article 29 a, shall be punished with imprisonment of 2 (two) years or a fine of maximum Rp2,000,000,000.00 (two billion rupiah).

(2) Anyone who cut parent trees containing horticultural genetic resources cultivation materials are endangered as intended in Article 29 paragraph b, shall be punished with imprisonment of three (3) years or a fine of maximum Rp 3,000,000,000.00 (three billion rupiah).

Article 126

(1) Anyone who distributed horticultural structure that does not meet quality standards, does not meet the minimum technical requirements, and/or does not registered as intended in Article 35, shall be punished with imprisonment of 2 (two) years or a fine of maximum Rp2,000,000,000.00 (two billion rupiah).

(2) In case of the act as intended in paragraph (1) cause damage to the function of the environment or endanger lives, the offender shall be punished with imprisonment of three (3) years or a fine of maximum Rp3,000,000,000.00 (three billion rupiah).

Article 127

Anyone who does the cultivation of horticultural plant kind that make lost to public health without special permission from the Minister as intended in Article 67 shall be punished with imprisonment of 1 (one) year or a fine of maximum Rp1,000,000,000.00 (one billion rupiah).

Article 128

Anyone who distribute certain imported fresh horticulture products that do not meet standards of quality and/or food security as intended in Article 88 paragraph (4) shall be punished with imprisonment of 2 (two) years or a fine of maximum Rp2,000,000,000.00 (two billion rupiah).

Article 129

(1) In case of acts as intended in Article 124 to Article 128 made by the corporation, in addition to its officials convicted under Article 124 up to 128, the corporation is liable to a maximum penalty plus 1/3 (one third) of the criminal penalties of each.

(2) In case of acts as intended in Article 124 to Article 128 by officials as the person who is ordered or the person in the position who has authority in the field of horticulture, shall be punished with a penalty as in this Law plus 1/3 (one third).

CHAPTER XVII
TRANSITIONAL PROVISIONS

Article 130

At the time this Law comes into force, all applicable laws and regulations governing the horticulture remain valid throughout has not been changed or is not contrary to this Law.

Article 131

(1) At the time the Law comes into force, foreign investment approval for the horticulture business implementation has been granted permission by the Government shall remain in force, except for the addition of new capital adjusted to the provisions of this Law.

(2) Within a period of 4 (four) years after this Law comes into force, foreign investors are already investing and get a business permit shall comply with the provisions of Article 100 paragraphs (2), (3), (4), and (5).

CHAPTER XVIII
CLOSING PROVISIONS

Article 132

Government regulation as implementing of this Law should has been determined at the latest 24 (twenty four) months from the promulgation of this Law.

Article 133

This Law shall come into force on the date of promulgation.

For public cognizance, this Law shall be promulgated by placing it in the State Gazette of the Republic of Indonesia.

Enacted in Jakarta
on November 24, 2010
PRESIDENT OF THE REPUBLIC OF INDONESIA,
Signed,
DR. H. SUSILO BAMBANG YUDHOYONO

Promulgated in Jakarta
on November 24, 2010
MINISTER OF LAW AND HUMAN RIGHTS OF REPUBLIC OF INDONESIA,
signed,
PATRIALIS AKBAR

STATE GAZETTE OF THE REPUBLIC OF INDONESIA NO. 132 OF 2010