Push the Downstream Industrial Development, Government Manage the Plantation Fundraising

Push the Downstream Industrial Development, Government Manage the Plantation Fundraising

In order to encourage the development of downstream industries and in order to implement the provisions of Article 93 of Law Number 39 of 2014 on Plantation, President Joko Widodo on May 18, 2015, has been signed the Government Regulation (PP) No. 24 of 2015 on Plantation Fundraising.

Plantation Fundraising is aimed to encourage the development of plantation sustainable, especially on strategic commodities, namely oil palm, coconut, rubber, coffee, cocoa, sugar cane, and tobacco.

As for, fundraising source comes from, a. Plantation Business perpetrators; b. Funds financing institutions; c. Public funds; and/or d. Other funds are legitimate.

“Funds sourced from plantation business communities include: a. Levies on exports of strategic commodities plantation; and b. Contribution from plantation business communities, “reads Article 5 Paragraph (1) of the PP.

According to Article 9 of Regulation No. 24 In 2015, the plantation funds that collected are used for the interests of: a. Plantation human resources development; b. Research and development of plantations; c. Plantation Promotion; d. Rejuvenation of plantations; and / or e. Facilities and infrastructure of plantations.

Fund Management Agency

In order to collect, administer, manage; save, and distribute the funds raised, according to this regulation, the Government established the Fund Management Agency, which was formed for a single strategic plantations commodity or a combination of several strategic plantations commodities.

“Establishment of Fund Management Agency referred to, is determined by consideration of the Government’s policy of national interests,” reads Article 16, Paragraph 3 of Government Regulation No. 24 of 2015.

Fund Management Agency referred to consists of: a. Supervisory Board; and b. Management Officer.

With the Supervisor assigned to conduct supervision and guidance on the implementation tasks of management officer as many as 9 (nine) people, which includes the chairman and members, and comprising elements of the Government of 6 (six) people, and professional three (3) members, with tenure 5 (five) years and may be extended for a period of duty 5 (five) years.

Meanwhile, Management Officer assigned to conduct operations on : a. Planning and budgeting; b. Fundraising; c. Fund management; d. Distribution of the use of funds; and e. Administration and accountability.

“The Management Officer in managing of funds as referred be able to make an investment in the form of: a. Blue chip stocks traded on the Stock Exchange; b. Government Bonds and / or the Private Securities eligible investment grade; and / or c. Deposits in national banks, “reads Article 21, Paragraph (2) PP 24 in 2015.

In addition to the imposition of administrative sanctions, violation of the underpaid levy on the export of strategic plantations commodities also be subject to financial penalties by the Fund Management Agency.

“This regulation comes into force on the date of enactment,” reads Article 28 of Government Regulation No. 24 of 2015, which was promulgated by the Ministry of Justice Yasonna H. Laloly on May 25, 2015. (Pusdatin/ES)