작성일자: 2013.6.21

작성자: 자카르타 무역관 Yoon, Yeo Pil (kotrayoon@kotra.or.kr), Ruth Duhita (ruth@kotra.or.id)

 

 

1. Market Situation

 

 ○ As an agricultural-based country, Indonesia has vast agricultural land with a variety of agricultural commodities. Therefore, Indonesia has become a lucrative market for the industry of agricultural inputs such as seeds/ seedlings, fertilizers, pesticides, and agricultural equipment and machinery.

 

 ○ Since the implementation of the deregulation policy in the field of pesticide registration in 2001, the number and type of pesticide on the market is increasing. Pesticides that are registered and licensed by the Ministry of Agriculture until October 2011 amounted to 2,681 pesticide formulations with registration number from 354 companies.

 

 ○ According to data from the Multinational Association of Pesticides (Appem), current national pesticide market reached Rp 6 trillion per year. However, 12% of the total market was controlled by fake pesticides.

 

 ○ Circulation of counterfeit and illegal pesticide threatens not only the pest control industry, but also detrimental to farmers and jeopardize the health and safety of the environment. Impacts on agriculture, which destroy crops, destroy food production and commodity exports to a halt.

 

 ○ Building on these conditions, all relevant parties ranging from pesticide manufacturers, government, distributor, to farmers as users of these products should be aware of counterfeit and illegal products.

 

 ○ Regulations exist to ensure and supervise every kind and trademarks pesticides available in the market in order to meet the technical and economic requirements set by the government.

 

 ○ Pesticide products must be registered with the appropriate authority(Ministry of Agriculture). In addition, the pesticide product must be registered with the National Standardization Agency(BSN) to meet the Indonesian National Standard(SNI) so that both the ingredients, formula and packaging products have to meet the rules and requirements.

 

 ○ Various regulations on pesticides have been issued by the Government, either directly in the form of Government Regulation(PP) and Decree(SK) and/ or regulations of relevant ministers(Ministry of Agriculture). Regulations need to be extensively socialized so that it touches all stakeholders.

 

No	Regulation	Institution	Date	About
1	24/ Permentan/ SR.140/ 4/ 2011	Agriculture Minister	8/4/2011	Term and Procedure for Registration of Pesticide
2	01/ Permentan/ OT.140/ 1/ 2007	Agriculture Minister	1/5/2007	List of active materials of prohibited pesticides and restricted pesticides
3	No.881/ Menkes/ SKB/ VIII/ 1996 and 711/ Kpts/ TP.270/ 8/ 96	Joint Decree of the Ministry of Health and Ministry of Agriculture	1996	The Maximum Limit of Pesticide Residue of Agriculture Products.
4	PP No. 7 Year 1973	Ministry of Agriculture	1973	Monitoring of Distribution, Storage, and Use of Pesticides

 

 ○ Director General of the Ministry of Agriculture Infrastructure, Gatot Irianto, said would tighten controls to oversee the licensing of pesticide for pesticide importers. So later, license must not break the partnership and make a new name of another company, the company that already got license may no longer get new permit.

 

 ○ According to Gatot, pesticides banned in international forums will also be investigated further by checking lab.

 

 ○ Gatot targets, evaluation of pesticide imports will be completed later this year. Therefore, it was brewing inside Ministry of Agriculture to revise the rules. However Gatot added a needed process for rules or regulations that must be disseminated by various parties.

 

 ○ Manager Advocacy and Networking People's Coalition for Food Sovereignty(KRKP) Said Abdullah said the high pesticide use and trafficking showed weak government oversight. Because many pesticides with active ingredients prohibited under INPRES 3/86 are still circulating on farmers.

 

 ○ Of the total circulation, approximately 10~12% is the illegal pesticides.

 

 ○ Currently, based on data from the Pesticide Commission under the Ministry of Agriculture were registered as many as 350 brand fungicides, 600 brands of herbicides and 800 brand of insecticides, with a permanent license. This amount does not include the illegal products.

 

 ○ For that, the government should take immediate control and supervision of the circulation of pesticides. Regulation and control functions should be strictly applied. Policy Integrated Pest Management(IPM) needs to be redone. For further, IPM policy is an effective way of controlling the blast hopper as it has been proven several years ago.

 

 ○ As is known, especially insecticide pesticide trade in Southeast Asia in the last five years continues to increase. Southeast Asian countries have doubled imports of insecticides, especially the production of China, including Indonesia. In 2009 alone, Indonesia imported insecticides more than US$ 90 million. Total market value of the national pesticide Rp 6 trillion per year

 

 

2. Import Trend

 

 ○ According to Indonesian Statistical Bureau(BPS), the import trend of products under HS Code 3808, in 2012 reached US$ 292,961,983. This is increased 4.48% compare to import value in 2011 that reached US$ 280,391,816.

 

 ○ Products of Hansung Biochem are under HS Code 3808.99. According to the table, the import in 2012 reached US$ 7,365,311. This is increased 18.3% compare to import value in 2011 that reached US$ 6,224,600.

 

 ○ Import of HS Code 3808.99 is dominated by 24% from United of Kingdom. The import from this country reached US$ 1,743,551 that increased 126% compare to import value in 2011 that reached US$ 770,673. Its position is followed by China(22%), Malaysia(15%), Taiwan(12%) and others.

 

 ○ South Korea is ranked at 11th position that its share only 1% of import value of products under HS Code 3808.99. Its import value reached US$ 70,015 in 2012 that increased remarkably from US$ 13 in 2011.

 

Import Value of HS Code 3808

                           (Unit: US$, %)

HS Code	Products	Import Value			Growth 2011 to 2012
		2010	2011	2012
3808	Insecticides, Rodenticides, Fu	221,557,554	280,391,816	292,961,983	4.48
380850	Goods Specified In Subheading	46,347,427	43,229,519	42,537,231	-1.6
380891	Insecticides, In Forms Or Pack	61,237,542	89,088,948	87,972,916	-1.3
380892	Fungicides, In Forms Or Packag	50,273,323	68,883,006	58,202,932	-15.5
380893	Herbicide, Anti-Sprouting & Pla	57,368,617	71,353,329	93,391,628	30.9
380894	Disinfectants, In Forms Or Pac	1,613,265	1,612,414	3,491,965	116.6
380899	Pesticides, Incl Rodenticides,N	4,717,380	6,224,600	7,365,311	18.3

 

Import origin Countries of HS Code 3808.99

          (Unit: US$, %)

Rank	Country	Import Value			Growth 2011 to 2012
		2010	2011	2012
1	United Kingdom	110,742	770,673	1,743,551	126
2	China	3,547,229	3,187,452	1,584,993	-50
3	Malaysia	170,387	252,676	1,138,626	351
4	Taiwan	95,756	595,746	912,146	53
5	Switzerland	4,008	152,145	509,582	235
6	Belgium	162,436	281,182	399,030	42
7	United States	57,739	323,457	274,976	-15
8	Japan	58,664	187,409	202,307	8
9	Germany	255,925	39,989	169,793	325
10	India	-	141,870	165,857	17
11	Korea, South	492	13	70,015	538477
12	Others	254,002	291,988	194,435	-33
Total		4,717,380	6,224,600	7,365,311	18

 

 

3. Import Duty

 

HS Code	Description of Goods	Import Duty (%)	Value Added Tax (%)
38.08	Insecticides, rodenticides, fungicides, herbicides, anti-sprouting products and plant-growth regulators, disinfectants and similar products, put up in forms or packings for retail sale or as preparations or articles (for example, sulphur-treated bands, wi
3808.50	- Goods specified in Subheading Note 1 to this Chapter:
3808.50.10.00	-- Insecticides	10	10
	-- Fungicides:
3808.50.21.00	--- In aerosol containers	5	10
3808.50.29.00	--- Other	5	10
	-- Herbicides:
3808.50.31.00	--- In aerosol containers	10	10
3808.50.39.00	--- Other	10	10
3808.50.40.00	-- Anti-sprouting products	10	10
3808.50.50.00	-- Plant-growth regulators	10	10
3808.50.60.00	-- Disinfectants	10	10
	-- Other:
3808.50.91.00	--- Wood preservatives, being preparations other than surface coatings, containing insecticides or fungicides	5	10
3808.50.99.00	--- Other	5	10
	- Other:
3808.91	-- Insecticides:
	--- Intermediate preparations for the manufacture of insecticides:
3808.91.11.00	---- Containing 2-(1-Methylpropyl) phenol methylcarbamate)	5	10
3808.91.19.00	---- Other	5	10
3808.91.20.00	--- In the form of mosquito coils	5	10
3808.91.30.00	--- In the form of mosquito mats	5	10
	--- Other:
	---- In aerosol containers:
3808.91.91.00	----- Having a deodorising function	5	10
3808.91.92.00	----- Other	5	10
	---- Other:
3808.91.93.00	----- Having a deodorising function	5	10
3808.91.99.00	----- Other	5	10
3808.92	-- Fungicides:
	--- In aerosol containers:
3808.92.11.00	---- With a validamycin content not exceeding 3% by net weight	5	10
3808.92.19.00	---- Other	5	10
3808.92.90.00	--- Other	5	10
3808.93	-- Herbicides, anti-sprouting products and plant-growth regulators:
	--- Herbicides:
3808.93.11.00	---- In aerosol containers	5	10
3808.93.19.00	---- Other	5	10
3808.93.20.00	--- Anti-sprouting products	5	10
3808.93.30.00	--- Plant-growth regulators	5	10
3808.94	-- Disinfectants:
3808.94.10.00	--- Containing mixtures of coal tar acid and alkalis	5	10
3808.94.20.00	--- Other, in aerosol containers	5	10
3808.94.90.00	--- Other	5	10
3808.99	-- Other:
3808.99.10.00	--- Wood preservatives, containing insecticides or fungicides	5	10
3808.99.90.00	--- Other	5	10

 

 

4. Certification

 

 ○ Regulation of Government, PP No. 7 Year 1973 about Monitoring of Distribution, Storage, and Use of Pesticides confirmed that pesticides must be registered to the Ministry of Agriculture. Only pesticides that have been registered and licensed by the Ministry of Agriculture may be distributed, stored, and used in the area of Republic Indonesia. Circulation, storage, and use of pesticides are registered and licensed by the Ministry of Agriculture or should not deviate from the provisions in force.

 

 ○ As a follow-up to the Government Regulation and Regulation of the Minister of Agriculture has issued a Regulation of the Minister of Agriculture No. 24/ Permentan SR.140/ 4/ 2011 about Pesticide Registration Requirements and Procedures.

 

 ○ In this regulation determined that:

  - Pesticides must be registered by the Ministry of Agriculture for its use permit is requested;

  - Only registered pesticides and or authorized by the Ministry of Agriculture that may be stored, distributed and used.

  - The pesticide that is registered and authorized by the Ministry of Agriculture that may only be stored, distributed and used in accordance with the provisions set out in the pesticide permit

  - Each pesticide must be labeled in Indonesian language in accordance with the provisions set forth in the registration and permit of each pesticide.

 

 ○ Pesticide application for registration can be done by the business entity or Indonesian legal entities in compliance with the registration requirements as follows:

  - Deed of Establishment and its amendments of the business entity (Business Trade, Firm, CV, NV), and legal entities (PT, Cooperative);

  - Trading License(SIUP)/ Trade Registration Certificate(TDUP) for Pesticides

  - Taxpayer Identification Number(NPWP);

  - Domicile Certificate/ Identity Card(KTP);

  - The right to sign a statement in the context of the registration and licensing;

  - Letters of guarantee supply of active ingredients from suppliers of active ingredients

  - For owners formulation that comes from abroad, registration of pesticides is done by proxies/ representatives and the Indonesian legal entities domiciled in Indonesia.

 

 

5. Distribution Channel

 

□ Below are the companies as importer and distributor of pesticide :

 

 ○ Name of Company: PT Mitra Kreasidharma

  - Business Line: Supply of pesticide formulations, crop seeds and plastic antioxidants

  - Address: Wisma Unggul Indah Cahaya, 4th Floor, Jl. Jend. Gatot Subroto Kav. 6-7, Jakarta Selatan, DKI Jakarta 12930

  - Phone: (62-21) 57905245

  - Fax: (62-21) 57905244

  - E mail: info@mkdgroup.com

  - Homepage: http://www.mkdgroup.com/

  - Contact Person: Mr. Edi, Marketing Manager

 

 ○ Name of Company: PT Utomo Utomo

  - Business Line: Garden equipment; Fertilizer; Pesticide

  - Address: Sunter Paradise Raya 2 Blok F21 No.C27 Jakarta Utara 14350 – Indonesia

  - Phone: (62-21) 65304458

  - Mobile: +62-816974803

  - Fax: (62-21) 6412405 ; 6502620

  - Homepage: www.utomoutomo.co.id

  - E mail: info@utomoutomo.co.id

  - Contact Person: Ms. Ermi (Marketing Manager)

  - E mail: buyer@utomoutomo.co.id

 

 ○ Name of Company: PT Putrisari Kimianusa

  - Business Line: Pesticide

  - Address: Plaza Bumi Daya 19th Floor, Jl. Imam Bonjol No. 61, Jakarta 10310, Indonesia

  - Phone: (62-21) 31923375

  - Fax: (62-21) 31923245

  - Email: sales@putrisari.co.id

  - Homepage: http://www.putrisari.co.id/

 

 ○ Name of Company: PT Tritama Wirakarsa

  - Business Line: Pesticide

  - Address: JL.Raya Pasar Minggu KM 19 no.3C, Jakarta Selatan 12510 Indonesia

  - Phone: (62-21) 79183402,79183414

  - Fax: (62-21) 79183429

  - E mail: marketing@twk.co.id

  - Homepage: http://twk.co.id/

 

 ○ Name of Company: PT Sang Hyang Seri

  - Business Line: Seedling; Pesticide, Herbicides; Rice

  - Address: Jl. Dr. Sahardjo No. 313, Manggarai, Jakarta Selatan, DKI Jakarta 12810

  - Phone: (62-21) 8291530, 8295956

  - Fax: (62-21) 8298614

  - Homepage: http://www.shs-seed.com/

  - E mail: pemasaran_shs@yahoo.com

  - Contact Person: Mr. Toto Priyono (Head of Retail Division)