Legality and Licensing: Mandatory Requirements for Shrimp Farms to Operate

Shrimp farming requires responsible cultivation practices in addition to pursuing production targets. One of the ways to implement this practice is through complying with the legality of the farm.

In Indonesia, the Ministry of Maritime Affairs and Fisheries has required fish and shrimp farming businesses to comply with farm licensing. Learn more about the two crucial licensing that Indonesian farmers must fulfill below.

CBIB for shrimp farms

One of the necessary legal certifications that shrimp farmers need to fulfill is Good Fish Cultivation Methods (CBIB). CBIB is the practice of raising aquaculture commodities including shrimp and harvesting them in a controlled environment. The certification covers 4 aspects, namely

1. Food safety
2. Fish health and welfare
3. Environmentally friendly
4. Socioeconomic

Applications for CBIB certification can be made by cultivation units, either individually, in fish cultivator groups, or business entities, and are addressed to the Head of the Provincial Maritime and Fisheries Service, equipped with administrative documents and should be copied to the Head of the Regency/City Maritime and Fisheries Service through post mail, fax, and/or email.

The following are the requirements for CBIB applicants:

1. The business scale can be individual, in groups, or companies that produces fish for consumption and is aimed for local or export markets;
2. Have run cultivation for at least 1 cultivation season;
3. Cultivation business activities at the nursery and/or fish rearing stages.

Meanwhile, the administration documents required are

1. A copy of Fisheries Business License (SIUP) for legal entity business units or records/remarks of fish cultivation business for individual business units or confirmation of fish cultivator groups;
2. General data on fish cultivation units;
3. List of fish cultivation unit facilities;
4. List of notes/records of fish cultivation unit activities;
5. Number of fish cultivation unit workers and their education (Organizational structure and job descriptions, for groups or companies);
6. Building layout, map, and conditions around the fish cultivation unit.

Read more: CBIB: A Guarantee for Responsible Shrimp Farming Practices

The Approval of the Suitability of Marine Space Utilization Activities (PKKPRL) for shrimp farms

Other than the CBIB, the Ministry also issues the Approval of the Suitability of Marine Space Utilization Activities (PKKPRL). It is a license issued by the Indonesian Government to protect the use of marine space and prevent business actors from misusing marine resources with high economic value.

PKKPRL serves as a substitute for location permits on land that will be used as shrimp farms, which was originally under the authority of the Regional Government. Farmers is required to obtain this license to ensure that their shrimp farming business is carried out according to the Spatial Planning (RTR) in coastal, marine, and jurisdictional areas permanently in some marine spaces.

Based on Article 113 paragraph (1) and (2) of the Maritime Affairs and Fisheries Ministerial Regulation No. 28 of 2021, PKKPRL is aimed at businesses run by Business Entities located in:

1. Coastal waters;
2. Water area; and/or
3. The jurisdiction settled in some marine space, including the sea surface, water ponds, and/or seabed.

PKKPRL can be applied through the Online Single Submission Risk Based Approach (OSS RBA) at oss.go.id. Then the applicant may applies through the OSS RBA by attaching the following information:

1. Location coordinates
2. Building and marine installation plans
3. The need for marine utilization space activities width
4. Information on the use of surrounding space
5. Location depth

Furthermore, the following are the general documents that must be fulfilled to apply for PKKPRL:

A. Applicant Information:

1. Applicant’s name;
2. Company or business entity’s name;
3. Address;
4. Taxpayer Identification Number (NPWP);
5. Mobile phone number;
6. Office telephone/fax number; and
7. Email address;

Meanwhile, the special documents include

A. Building and Marine Installation Plans which consist of

1. Detailed activity plan
2. Location map/area boundaries plotting and/or routes with coordinate points (Polygon)

B. Marine utilization information

1. Contains information on the use of marine space around the location

C. Data on the current conditions of the location and surroundings, consisting of:

1. Ecosystem
2. Hydro-oceanography
3. Seabed profile
4. Socioeconomic conditions/characteristics of the community
5. Location accessibility

D. Reclamation requirements (if any), including:

1. Plan for reclamation materials sourcing
2. Reclamation land utilization plan
3. General description of reclamation implementation
4. Reclamation implementation plan schedule

According to the Article 124 paragraph (2) letter a of the Maritime Affairs and Fisheries Ministerial Regulation No. 28 of 2021, the assessment process of application for PKKPRL is carried out within a maximum of 14 days. However, based on the OSS RBA, the PKKPRL assessment period is 20 days, which is divided into

• 14 days of assessment until the issuance of approval for Non-Tax Revenue (PNBP) payment; and
• 6 days after the PNBP payment until the issuance of PKKPRL.

Once the document assessment for PKKPRL has been approved, there will be an instruction issuance for PNBP payment to the applicant through the OSS system. PKKPR applicant is given a payment due date up to 21 days after the PNBP instruction is issued (Article 128 paragraph (3) of the Maritime Affairs and Fisheries Ministerial Regulation No. 28 of 2021). Then, the PKKPRL will be given within a range time of a maximum 6 days since the payment proof has been received.

The importance of ensuring the legality of shrimp farming

Legalities such as CBIB and KKPRL are a form of protection from the Ministry of Maritime Affairs and Fisheries for cultivation, especially in aspects of cultivation practices and spatial planning. By ensuring legality, the safety of shrimp farms, both in terms of cultivation and economic activities around the farm, will be guaranteed.

Legality will also minimize social and environmental conflicts in the area around the farm. This conflict has been encountered several times in coastal areas of Indonesia. For example, the closing of illegal shrimp farms in Sumenep, the operation ban of two farms in Lebak, and two in Batam. By ensuring legality, similar conflicts can be prevented as there is a guarantee of responsible cultivation practices by farmers.

JALA is #HeretoHelp Farmers to Obtain CBIB and KKPRL

Considering the importance of CBIB and KKPRL for shrimp farming businesses, JALA also supports farmers in obtaining them. JALA can help farmers who collaborate with JALA in fulfilling various licenses from the beginning to the end according to the applicable regulations in Indonesia.

To date, JALA has helped a number of shrimp farming companies to apply for licenses in more than 120 hectares of listed and registered land. Those shrimp farms are spread in various regions, namely

• Situbondo
• Purworejo
• Gresik
• Konawe Selatan
• Luwu
• Lalombi

Farmers in the aforementioned regions have possessed basic shrimp farming skills with a farm system. However, they have not understood how to obtain required licenses to run shrimp farm business yet. As for the output, the farmers have successfully obtained several required licenses, such as PKKPRD, PKKPRL, and other licenses.

JALA encourages farmers to take advantage of this opportunity. By realizing the importance of legality for shrimp farming businesses, opportunities for guaranteed cultivation results and space utilization can be achieved. Social and environmental conflicts in the area around the farm can also be minimized.