From Pond to Profit: The Esential Permits for Indonesian Shrimp Farming

I. Establishing Your Business

The first step involves establishing your business entity. For those seeking full foreign ownership, a Foreign Investment Company (PT PMA) is the ideal choice. This process adheres to Law No. 40/2007 on Limited Liability Companies and the Capital Investment Law. Here's what you'll need to do:

Minimum of Two Founders: A minimum of two founders need to sign a Deed of Incorporation drafted in Indonesian.
Deed of Incorporation: This document includes the Articles of Association outlining your company's structure and purpose, along with detailed founder information.
Minimum Investment: Be prepared to invest a minimum of IDR 10,000,000,000 (excluding land and buildings).
Once your company is established, you'll need to register it through the online Risk-Based Approach Online Single Submission (OSS-RBA) system managed by BKPM. This convenient system grants a comprehensive business license encompassing all necessary government approvals.

II. Key Permits for Shrimp Farming

Obtaining the right permits is crucial for operating a legal and responsible shrimp farm. Here are the key ones to focus on:

KBLI Code: The Indonesian Standard Business Field Classification (KBLI) code identifies your specific business activity. Depending on your chosen shrimp farming method, potential KBLI codes include:

03221: Fresh Water Fish Breeding in a Pool
03254: Brackish Water Crustacean Breeding
03216: Salt Water Crustacean Breeding
Good Fish Farming Certificate (CBIB): Issued by the Ministry of Marine and Fisheries (MoMAF), this certificate verifies your adherence to environmental and operational standards for responsible aquaculture practices. To obtain your CBIB, you'll need to submit documents like your organizational structure, NIB (business identification number), and proof of non-tax obligation payments.

Environmental Impact Assessment: The environmental impact of your shrimp farm needs to be assessed by the government. The specific requirements depend on the size of your operation. For smaller farms under 10 hectares, an Environmental Impact Management Plan (SPPL) suffices. Farms between 10 and 500 hectares require an Environmental Impact Study (UKL-UPL), while those exceeding 500 hectares necessitate a full Environmental Impact Assessment (Amdal).

Land Location Usage Permit (KKPR): This permit authorizes the use of land for your shrimp farm. Securing this permit is essential before you begin construction or operation.

III. Additional Considerations

While not mandatory, obtaining a Fish Farming Practice Certificate (CBIB) demonstrates your commitment to responsible aquaculture practices. This can enhance your reputation and potentially open doors to new markets. Additionally, if you plan to construct permanent structures on your farm, you'll need to acquire Building Approval from the relevant authorities. Ensuring worker protection and social security is also important, so registering for Labor Insurance is a wise move.

Supporting and Supplementary Requirements

There may be additional permits or licenses required depending on your specific circumstances. These may include:

Supporting: License to Support Activities (PB UMKU)

Supplementary: Electricity License (for generators exceeding 500kW), Operability Certificate, Water Resource License

Disclaimer:
The information contained in this article is general and should not be considered as legal advice or any other professional advice. Please consult with professional advisors for advice concerning these specific matters before making any decisions.