REPUBLIC OF INDONESIA STATE NEWS

No. 79, 2010 AGRICULTURE MINISTRY. Palm oil. Purchase Of A Farm Production.

REGULATION MINISTER OF AGRICULTURE REPUBLIC OF INDONESIA

NUMBER: 17 /Permentan/OT.140/2/ 2010 ABOUT

GUIDELINES PRICING PURCHASE TANDAN FRUIT FRESH FRUIT (TBS) OIL PALM PRODUCTION PECHARD

WITH GRACE GOD ALMIGHTY AGRICULTURAL MINISTER OF THE REPUBLIC OF INDONESIA,

DRAWS: A. that with the Regulation Minister of Agriculture No. 395 /Kpts/OT.140/11/ 2005 has been established the Tandan Fresh Fruit Purchase Price (TBS) Guidelines For The Oil Palm Production of Peorchard;

b. that in the development of enterprises in the field of plantations has undergone development, so the Regulation of Agriculture Minister Number 395 /Kpts/OT.140/11/ 2005 needs to be reviewed;

c. that on the basis of those things above, and to provide The protection of fresh prices from Tandan Fruits of fresh fruit (TBS) palm oil production and avoiding unsanitary competition between the palm oil plant (PKS), needs to establish the purchase of the purchase price of purchase of fresh fruits (TBS) of the coconut. Garden production palm;

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Given: 1. Law Number 18 Of 2004 On The Farm (state Gazette 2004 Number 85, Extra Sheet Of State 4411);

2. Law Number 32 Year 2004 on Local Government (State Sheet 2004 Number 125, Additional Sheet Country 4437);

3. Government Regulation Number 38 Of 2007 On The Division Of Affairs Between Government, Provincial Government, And District/city Government (State Sheet Of 2007 Number 82, Extra State Sheet Number 4737);

4. President's Law Number 9 of 2005 on Occupation, Duty, Function, Susunan of the Organization and the Working Tata Ministry of the Republic of Indonesia juncto Regulation President No. 62 of 2005;

5. The Presidential Decree No. 10 of 2005 on the Unit of Organization and the Task of Eselon I Ministry of the Republic of Indonesia;

6. Presidential Decree No. 84 /P of the Year 2009 on the Establishment of the United Indonesia Cabinet II;

7. Agricultural Minister Regulation No. 299 /Kpts/OT.140/7/ 2005 on the Organization and the working order of the Department of Agriculture juncto Regulation Minister of Agriculture No. 11 /Permentan/OT.140/2/2007;

8. Regulations of Agriculture Minister Number 341/Kpts/OT.140/9/ 2005 on the completion of the Organization and Agriculture Department of Agriculture juncto Regulation Minister of Agriculture Number 12 /Permentan/OT.140/2/2007;

DECIDED:

Establishing: MINISTER REGULATION AGRICULTURE ON THE GUIDELINES FOR THE PURCHASE OF FRESH FRUIT TANDAN FRUITS (TBS) PALM OIL PRODUCTION PEORDS.

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CHAPTER I OF THE GENERAL PROVISIONS

Article 1 In this Regulation is referred to by: 1. The next palm oil orchard is called a scarecrow

an Indonesian citizen who does plantation business with a scale of not achieving a certain scale and performs a partnership with a partner company.

2. The partnership of the plantation is a partnership between the farm and the palm oil plantation company.

3. Plantation company is an Indonesian citizen or legal entity established by Indonesian law and based in Indonesia that manages palm oil plantations with a certain scale of effort and conducts a business. A partnership with a garden/institutional field.

4. The institution of the garden is a platform of a group of orchards or cooperatives that have the administrator and organizational structure.

5. A group of gardens is a group of gardens formed on the basis of commonality, environmental conditions and in a non-formal-bound expanse of mutual cooperation on the basis of mutual compassion, compassion, and mutual care. The chairman for the success of the farm.

6. The next palm fruit of palm oil is called TBS, which is the fresh fruit palm produced by the garden.

7. Index "K" is an index of the proportion expressed in percentage (%) indicating the share received by the gardeners.

Article 2 (1) This Regulation is intended as a legal basis for the local government

in the implementation of TBS purchases Coconut palm production of farmers. (2) The purpose of this regulation to provide protection in the acquisition

the reasonable price of the TBS palm oil production of farmers, and avoid any unsanitary competition between the Palm Oil (PKS) Plant.

Article 3 of the scope of this regulation includes the TBS purchase price formula, coaching and sanctions.

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Section 4 (1) Pechard sells all TBS to companies and companies buying

all TBS to be processed and marketed in accordance with the cooperation agreement.

(2) Agreement of cooperation as contemplated In verse (1) must be made known to Bupat/Mayor and the Governor in its implementation is performed by the Head of the Service performing the county/city and provincial plantation functions.

CHAPTER II TBS PURCHASE PRICE FORMULA

ARTICLE 5 (1) PRICE TBS purchases by the Company are based on pricing formulas

TBS purchases. (2) The price of the TBS purchase price as referred to in paragraph (1)

specified as follows: H TBS = K {Hms x Rms + His x Ris}

with understanding: H TBS: The TBS price received by the garden at the factory level,

stated in the Rp/Kg; K: Index of proportion which indicates the part received by

peorchard, expressed in percentage (%); Hms: Average price of rough palm oil (CPO) weighted realization

export sales (FOB) and local respective companies in the previous period, expressed in Rp/Kg;

Rms: The crude palm oil yield (CPO), expressed in percentage (%);

His: The average price of palm palm (PK) weighted realization of export sales (FOB) and local each company in the prior period, stated in Rp/Kg;

Ris: The yield of palm palm (PK), expressed in percentage (%). (3) The TBS purchase price as referred to in paragraph (1) is specified

at least 1 (one) times each month based on real prices weighted average crude palm oil (CPO) and palm palm (PK) as per the realization of export sales (FOB) and local each company.

(4) The TBS purchase price as referred to in paragraph (3) is the price of franko oil palm processing plant.

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Section 6 of the "K" index is specified at least 1 times each month by the Governor in implementation of the Department of Service in charge of the Governor's name on the basis of the term Governor. The TBS Purchase Price Redemption Team is proposed.

Section 7 (1) Harvest, sortation, transit, TBS average weight designation

by plant age, sanctions, incentives, purchase and payment, the calculation of the magnitude of the "K" index as well as the magnitude of crude palm oil (CPO) and the palm (PK) core as set forth in the Attachment as part inseparable with this Regulation.

(2) Measurements of crude palm oil (CPO) and Core Sawit (PK) as referred to in paragraph (1) are evaluated periodically every 5 (five) years by the Regent /Mayor and Governor in accordance with the general guidelines compiled by The Directorate General of Processing and Marketing of Agricultural Results.

(3) The cost of measuring measurement as referred to in paragraph (1) is charged on the Provincial APBD budget.

Article 8 (1) of the TBS Price Redemption Team as refering to the applicable provisions.

d. The realization of additional new investment is calculated in total depreciation costs.

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4. Calculation of the Big K index "K" index "K" is calculated by the following formula: Htbs K = ------------------------------------ x 100% With understanding: Htbs = TBS values in Hms factory = Value of realization averaged sales of export sales and Local oil

rough palm (net FOB price) His = Average realization value weighted sales export and local core

palm Rms = Yield of crude palm oil Ris = Yield Nuclei of Sawit

5. How to calculate the magnitude of the "K" index

(Hms X Ris) + (His X Ris) + (His X Ris)

EKS LOK EKS LOK 1 2 3 4 5 6 7 8

1 Price MS and IS x x x x x sales CPO and PK on (FOB) prior periods.

2 Tax x x x x All taxes imposed in connection with implementation of sales of MS and IS

3 Cost of Marketing x x x x In accordance with Riil expenditure.

4 Price MS and IS x x x No. 1-2-3 (FOB Bersih)

5 The transport to x x x x is calculated according to the Riil expenditure. Port

6 Clean Price MS and IS x x x No. 4-5 in the Factory

7 Renyield%%%% Renyield of crop age. As in the magnification table

8 The TBS x x x x x x x 7 x 7

9 percentage%%%% of Rata-Rata Presentase Sales Volume Sales Sales in the Previous Period

10 TBS Price X prices weighted average TBS Average Eks-average The factory for export & local (Penjum-

land yield multiplier No. 8 x 9). 11 x processing charges the entire processing cost

issued In the Previous Period.

12 The X Depreciation Calculated according to the price of the factory proportionately mine-rangi the remaining value, divided by a per-count of the amount production based on Factory capacity. Plant's economical age for 15 years.

13 TBS Values X Count 10-11-12 in Factory Factory

14 X Operational Charges The entire amount of Indirect Operating Expenses is not directly issued at

the previous peride that is which consists of cost of money (interest and bank costs, money delivery security insurance), depreciation and loss of CPO/PK in transport, the cost of the TBS Price Penetration Team and the plasma garden Overhead. Niali Operational Cost tidal costs maximum 5% of the TBS value on Factory scale

15 TBS prices at Factory x counted No. 13-14

NO DESCRIPTION OF TBS PALM PALM ' S PALM OIL

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Attraction: Index "K" = ------------------------------x 100% (4 x 7) + (4 x 7) Palm oil palm oil

X. THE MAGNITUDE OF THE OIL YIELD AND THE TBS PALM PRODUCTION OF PEORCHARD BASED ON THE REALIZATION THAT ORIGINATED FROM TBS WITH THE DIFFERENT PLANT AGE AND CONDITIONS OF EACH REGION SUCH AS THE OIL YIELD TABLE AND THE PALM PALM OIL CORE AND THE FRESH FRUIT PALM (TBS) Garden production.

MAGNITUDE YIELD OIL AND PALM OIL CORE

FRESH (TBS) FARMER PRODUCTION

MINISTER OF LAW AND HAM AGRICULTURE MINISTER OF INDONESIA REPUBLIC OF INDONESIA ' S PATRIALIST AKBAR SUSWONO

MS IS MS IS MS IS MS IS MS IS MS IS MS IS MS IS MS IS MS IS MS IS MS IS MS IS MS IS 1. 15.00 3.60 16.85 4.05 18.12 4.35 18.75 4.50 19.00 4.65 20.00 4.80 20.62 5.00 20.62 5.10 20.62 5.10 20.00 5.10 19.37 5.10 18.75 5.10 2.

15.62 3.60 17.50 4.05 4.75 4.35 19.00 4.50 20.00 4.65 20.62 4.80 21.62 5.00 21.87 5.10 21.87 5.10 21.25 5.10 21.25 5.10 5.10 5.10 21.25 5.10 21.00 5.10 21.25 5.10 21.00 5.10 21.25 5.10 21.00 5.10 21.25 5.10 21.25 5.10 21.25 5.10 21.00 20.62 5.10 20.00 5.10 18.75 5.10 3.

16.25 3.60 18.12 4.15 19.25 4.35 20.00 4.50 20.60 4.65 21.87 5.00 22.20 5.10 21.87 5.10 21.60 5.10 20.60 5.10 19.25 5.10 19.12 5.10 4.

15.62 3.70 17.50 4.05 18.75 4.35 4.35 19.25 4.50 19.25 4.50 19.25 4.50 19.25 4.50 20.00 4.65 20.62 4.80 21.25 5.00 21.87 5.10 21.25 5.10 20.62 5.10 20.00 5.10 19.25 5.10 18.75 5.10 5. 12.25 3.70 18.12 4.15 19.25 4.35 20.00 4.50 19.37 4.65 21.15 4.80 21.87 5.00 22.20 5.10 20.62 5.10 21.25 5.10 20.00 5.10 19.25 5.10 18.12 5.10 18.12 5.10 6. 15.00 3.70 16.85 3.90 18.12 4.25 18.75 4.25 20.00 4.65 20.00 4.60 20.62 4.95 21.25 5.10 20.62 5.10 20.00 5.10 19.37 5.10 18.75 5.10 18.75 5.10 18.12 5.10 7. 15.62 3.70 17.50 4.05 18.75 4.30 19.25 4.50 19.37 4.65 20.62 4.80 21.25 5.00 21.87 5.10 21.25 5.10 20.62 5.10 20.00 5.10 19.75 5.10 18.75 5.10 8. 15.00 3.69 16.85 4.05 18.75 4.30 18.75 4.15 19.00 20.00 4.60 20.62 4.90 21.25 5.10 20.62 5.10 20.00 5.10 19.37 5.10 18.75 5.10 18.12 5.10 9 5.10 9.12 5.10 20.00 5.10 20.00 5.10 20.00 5.10 20.00 5.10 20.00 5.10 20.00 5.10 15.62 3.70 16.85 3.70 18.12 4.10 18.75 4.25 19.37 4.45 20.00 4.60 20.62 4.80 21.25 5.00 20.62 5.00 20.00 5.00 19.37 5.00 18.75 5.00 18.75 5.00 18.12 5.00 5.00 10. 15.00 3.70 16.85 3.90 18.12 4.10 18.75 4.25 19.37 4.45 20.00 4.60 20.62 4.80 21.25 5.00 20.62 5.00 20.00 5.00 19.37 5.00 18.75 5.00 18.75 5.00 18.12 5.00 11. 15.00 3.70 16.85 3.90 18.12 4.10 18.75 4.25 19.37 4.45 20.00 4.60 20.00 4.80 21.00 5.00 20.00 5.00 20.00 5.00 26.00 5.00 18.75 5.00 18.75 5.00 18.12 5.00 12. 15.62 3.70 16.85 3.90 18.12 4.10 18.75 4.25 19.37 4.45 20.00 4.60 20.62 4.80 21.25 5.00 20.62 5.00 20.00 5.00 19.37 5.00 18.75 5.00 18.75 5.00 18.12 5.00 13. 15.62 3.70 16.85 3.90 18.12 4.10 18.75 4.25 19.37 4.45 20.00 4.60 20.62 4.80 21.25 5.00 20.62 5.00 20.00 5.00 19.37 5.00 18.75 5.00 18.75 5.00 18.12 5.00 14. 15.00 3.70 16.85 3.90 18.12 4.10 18.75 4.25 19.00 4.45 20.00 4.60 20.00 4.80 21.00 5.00 20.00 5.00 20.00 5.00 5.00 5.00 18.75 5.00 18.75 5.00 18.12 5.00 15. 15.00 3.70 16.85 3.90 18.12 4.10 18.75 4.25 19.00 4.45 20.00 4.60 20.00 4.80 21.00 5.00 20.00 5.00 20.00 5.00 5.00 5.00 18.75 5.00 18.75 5.00 18.12 5.00 16. 15.00 3.70 16.85 3.90 18.12 4.10 18.75 4.25 19.00 4.45 19.50 4.60 20.00 4.80 20.50 5.00 20.50 5.00 20.00 5.00 20.00 5.00 18.75 5.00 18.75 5.00 18.12 5.00 Ket: MS = Palm Oil

IS = Palm Palm

Southern North Sumatra

Central North Sumatra

Jambi Riau West Riau West Part Of West Sumatra

NAD North Sumatra Northern Part

Irian Jaya Central Kalimantan Central Kalimantan East Kalimantan West Kalimantan West Kalimantan Bengkulu South Sumatra

10 S/D 20 21 22 236 7REGION 24 25 RENYIELDS BY AGE OF PLANT (YEAR)

8 93 4 5

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