Wednesday, May 29, 2024

How-to understand regulation of fisheries business sector in Indonesia

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Currently, the fishery sector has not been ogled by various groups. In fact, fishery potential can make a country developed and prosperous. The potential of marine and fishery resources in small islands and/or border areas is very likely to be utilized for the benefit of the sustainability of marine and fishery resources as well as efforts to improve community welfare. One of the leading potentials of the marine and fisheries sector in Indonesia is marine fish resources with a total sustainable potential of 6.5 million tons/year.

Governing law and regulation 

  • Law No. 31/2004 concerning Fisheries as amended by Law No. 45/2009 and Law No. 11/2020 concerning Job Creation
  • Minister of Marine Affairs and Fisheries Regulation (Permen KKP) No. 58/PERMEN-KP/2020 of 2020 concerning Capture Fisheries Business
  • Minister of Marine Affairs and Fisheries Regulation (Permen KKP) No. 5/2021 concerning Fish Processing Business

Management area 

Fishery management areas in Indonesia for fishing or fish cultivation include Indonesian waters, the Indonesian Exclusive Economic Zone, rivers, lakes, reservoirs, swamps and other water bodies that can be cultivated as well as potential fish cultivation areas in the territory of the Republic of Indonesia. Fishery management outside the said area can be carried out based on statutory regulations, requirements, and/or generally accepted international standards.   

Prohibition

Any person, captain or leader of a fishing vessel, fishing expert and crew, owner of fishing vessel, owner of fishing company, person in charge of fishing company, operator of fishing vessel, owner of fish farming company, attorney of owner of fish farming company, and person in charge of the company aquaculture in catching and cultivating fish is prohibited from using chemicals, biological materials, explosives, tools or methods, or buildings that can harm or endanger the sustainability of fish resources or the environment in the fishery management area of the Republic of Indonesia.

Fish processing business

Fish processing business actors can be individuals or non-individuals. Non-individual business actors consist of limited liability companies, public companies, regional public companies, other legal entities owned by the state, public service entities, business entities established by foundations, cooperatives, limited partnerships, firm partnerships, and civil partnerships. In running a business in the fishery sector, business actors must have a Fisheries Business License in the Fish Processing Sector (SIUP). SIUP is a written permit that must be owned by everyone to carry out a fish processing business using the production facilities listed in the permit. Fish Processing Businesses are required to have business licenses in the form of SIUP for Fish Processing Sector and the Registration Certificate of Fishery Products Processing Business (TDU-PHP) or micro and small business permits. TDU-PHP is a written register that must be owned by everyone to carry out Fish Processing Business on a micro and small scale. SIUP for Fish Processing and TDU-PHP is valid as long as the business actor runs the business. Types of Fish Processing Businesses include:

  • salting/drying of fish;
  • smoking/roasting fish;
  • fish freezing;
  • fish transfer;
  • fish fermentation/fermentation;
  • mashed meat and surimi based processing;
  • fish cooling/testing;
  • fish canning;
  • seaweed processing;
  • fish oil manufacture;
  • fish sauce;
  • processing crackers, chips, dents and
  • the like; and/or
  • other processing and preservation.

The obligation to have a SIUP in the Fish Processing Sector is exempted for: 

  • types of processing business based on mashed meat and surimi and types of canning business for medium and large scale. This type of business must have an industrial business license.
  • types of Fish Processing Business with micro and small scale. This type of business must have a micro and small business license, for individual business actors or TDU-PHP, for non-individual business actors.

Applications and business licensing services in the field of Fish Processing Business are submitted through the OSS system. Business Actors must first have an NIB (business number) before submitting an application through the OSS system. To find out more about filing NIB at OSS, you can read this article. Furthermore, the business actor submits the application for SIUP in the Fish Processing Sector or TDU-PHP through the OSS system. Later, SIUP for Fish Processing Sector or TDU-PHP will be issued through the OSS system based on commitments. Commitment is a statement by a business actor to fulfill the requirements for a business license or commercial or operational license. SIUP for Fish Processing Sector or TDU-PHP based on the Commitment has not been effective as long as the business actor has not fulfilled the Commitment. Business actors must submit a Commitment to fulfill the requirements of SIUP for Fish Processing Sector or TDU-PHP.

The commitment to fulfill the requirements for the SIUP for the Fish Processing Sector consists of a location permit, an environmental permit, and a building permit. Environmental permits are not required for the issuance of SIUP in the Fish Processing Sector in the event that the business location is in a special economic zone, industrial area, or free trade area and free port and businesses that are not required to have an environmental impact analysis or businesses that are not required to have environmental management efforts environmental monitoring efforts. Business actors whose business or activities are located in special economic zones, industrial estates, or free trade areas and free ports shall draw up an environmental management plan-a detailed environmental monitoring plan based on an environmental management plan-a regional environmental monitoring plan. Building construction permits are not required for the issuance of SIUP for Fish Processing Sector or TDU-PHP in the event that the building is located in a special economic zone, industrial area, or free trade area, and free port, as long as the area manager has established building or building guidelines. A building is a government project or a national strategic project as long as it has been determined that the winning bidder or business entity has been assigned to carry out government projects or national strategic projects.

Meanwhile, the commitment to fulfill the TDU-PHP requirements consists of a location permit or equivalent permit and a building permit or equivalent permit.

In addition to submitting a Commitment in the form of these matters, business actor must also submit a Commitment in the form of a Fish Processing Business plan which at least contains:

  • type of business
  • source and value of investment
  • type and origin of raw materials
  • the production facilities used, for the application for SIUP in the Fish Processing Sector
  • layout and description of the production process, for the application for SIUP in the Fish Processing Sector; and
  • marketing area.

Business actors must also submit a Commitment in the form of a Card of the Main Players in the Marine and Fisheries Sector (Kartu Kusuka), which is the sole identity of the main actor in marine and fisheries, the electronic Kusuka Card.

Capture Fishery Business

Capture Fisheries Business activities are carried out by individuals and corporations. Corporations are corporations with legal entities which can be in the form of limited liability companies, public companies, and cooperatives. Fishing business using fishing vessels and/or fish transporting vessels with a cumulative size of 300 (three hundred) gross tonnage and above can only be carried out by corporations with legal entities. These activities operating at State Fisheries Management Area of the Republic of Indonesia (WPPNRI) are limited to a cumulative maximum of 50 (fifty) units of Fishing Vessels or Fish Transporting Vessels, with a cumulative size of a maximum of 10,000 (ten thousand) gross tonnage. WPPNRI is a fishery management area for fishing, fish cultivation, conservation, research, and fishery development, which includes inland waters, archipelagic waters, territorial seas, additional zones, and the Indonesian Exclusive Economic Zone.

Types of Capture Fisheries Business include

  • Fishing business: This type of business is carried out using fishing vessels. This fishing vessel also functions to transport the caught fish. This business is carried out using a fish carrier ship. 
  • Fish transportation business: This business can be in the form of transporting fish from fishing vessels in the fishing area of ​​WPPNRI to the base port in the country or in the fishing area on the high seas to the base port in the country or to the port of the destination country that is a member country of the Regional Fisheries Management Organizations (RFMO) in the RFMO area that and implement the provisions of the port state measure agreement. It can also be in the form of fish transportation from the base port or loading port to other base ports in the country or the base port to the port of the destination country. The Fish Carrier Vessel is used to transport fish from the fishing vessel based on a cooperation agreement. The Fish Carrier Vessel is a fishing vessel that has a hold and is specifically used to transport, accommodate, store, store, refrigerate, and/or preserve fish.
  • Fishing and fish transportation business.

Every person to conduct a capture fisheries business in WPPNRI and/or the high seas is required to have a capture fisheries business permit. The obligation to have a Capture Fisheries Business Permit is exempted for Small Fishermen. The Small Fisherman must have a Fishing Vessel Registration Certificate for Small Fishermen (TDKP). TDKP is written evidence stating that the Fishing Vessel is owned by Small Fishermen. The Capture Fisheries Business Permit consists of:

  • Fishery business license issued in the form of SIUP. This obligation is excluded for government agencies, ministries/non-ministerial government agencies, local administration agencies or universities for the benefit of training and research/fishery exploration. Government agencies, ministries/non-ministerial government agencies, local administration agencies or universities that have fishing vessels for training and research/fishery exploration are required to have Fishing Permit (SIPI).
  • Fishing permit issued in the form of SIPI. SIPI is a written permit owned by each fishing vessel to carry out fishing which is an integral part of SIUP. Fishing vessels that already have SIPI or SIKPI operating on the high seas are registered by the Director General to the RFMO. Fishing Vessels may operate on the High Seas after being registered with the RFMO.
  • Fish transportation permits are issued in the form of Fish Transporting Vessel Permit (SIKPI). SIKPI is a written permit that must be owned by every fishing vessel to transport caught fish. Fishing transport vessels that already have SIKPI operating on the high seas are registered by the Director General to the RFMO. Fish Transporting Vessels may operate on the High Seas after being registered with the RFMO.

SIUP is valid for 30 years and can be extended. Then SIPI and SIKPI are valid for 1 (one) year and can be extended. While the TDKP is valid during fishing.

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