Get to Know the Core-Plasma Partnership Agreement in Shrimp Farming

Things that shrimp farmers must consider when they want to do core-plasma partnership

The core-plasma is a partnership model between a company (as the core) and shrimp farmers (as the plasma) to cultivate ponds. The core company provides the pond, production means, technical guidance, and management of produce. On the other hand, the farmers (plasma) fulfills the company’s needs based on their agreement. This type of model is still widely used in Indonesian shrimp farms.

Core-Plasma Model in Shrimp Farming

In shrimp farming, the core company is usually a fishery or other type of company partnering with the plasma. Farmers receive help from the core company in the form of shrimp stock, feed, and chemicals, then sell their produce to the company. This partnership aims to increase the farmers’ income, expand their knowledge, and guarantee a stable produce for the market.

Minimum Requirements in Partnership Agreement

Shrimp farmers will be given an agreement document to be signed by both parties. The agreement should be written with the following requirements:

• Identity of each party
• Business activity
• Rights and obligations of each party
• Form of development
• Timeline
• Dispute resolution

The agreement needs to uphold an equal legal standing for both parties involved.

What if shrimp farmers already signed a partnership agreement?

To oversee partnerships based on Pasal 34 UU No. 20 Tahun 2008, the Minister can form a nation-wide or area-specific coordinating agency. Pasal 31 PP No. 17 Tahun 2017 also states that to oversee partnerships, the Komisi Pengawas Persaingan Usaha (KPPU) coordinates with respective agencies. Every partnership needs to be outlined in an agreement written in Bahasa (or foreign language if one of the parties is foreign).

KPPU will oversee the partnership based on UU and impose administrative sanctions for companies that do any violation, which may include revocation of business license or a fine or Rp 5 - 10 billion.

Here are the aspects that KPPU will oversee in the partnership: 

1. Pond provision and preparation
2. Provision of production means
3. Provision of technical guidance for production and business management 
4. Possession, authorization, and improvement of necessary technology
5. Funding
6. Marketing
7. Guarantee
8. Information
9. Other required help to improve efficiency, productivity, and business knowledge 

As the partnership agreement is being overseen, shrimp farmers do not need to worry as the principles and business ethics are well-upheld.

Moreover, shrimp farmers need to understand that the maximum shrimp farming area varies for individual or corporate farmers, starting from < 10 ha for individual shrimp farms to > 50 ha for farms that have conducted environmental analysis (AMDAL) based on UU.

References:

https://gimni.org/mengevaluasi-konsep-inti-plasma/

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