Application for land investment/land concession in agricultural activities
A. The application for approval for studying the project possibility and application for signing Memorandum of Understanding (MOU).
The investors with business operation objectives in agriculture activities and with government’s land concession requirement must request the approval for primary data collection from agriculture sector or Planning and Investment (PI) sector, then coordinate with concerned sectors at local levels. After having the primary data on land area and project location, the investors can submit the investment request to PI sector at central or local levels to request the approval in signing Memorandum of Understanding (MOU) with the Government for detailed exploration in the land area, with the agreement from concerned sectors, mainly from Natural Resource and Environment Sector and Agriculture and Forestry Sector.
Investors must submit the request to PI sector at central or local levels in accordance with the following decentralization:
|No.||To be considered by central levels||To be considered by provincial, municipal levels|
|1||Land concession for growing of non-perennial crops and food crops||Land concession for growing of non-perennial crops and food crops|
|2||Land concession for cattle farming: cows, buffaloes and others||Land concession for cattle farming: cows, buffaloes and others|
|3||Land concession for plantation of fruit trees and perennial plants, industrial plants (Acacia auriculiformis, eucalyptus)||Land concession for plantation of fruit trees and perennial plants, industrial plants (Acacia auriculiformis, eucalyptus)|
|4||Land concession for plantation of economic plants (sugarcane, corn….)||Land concession for special plants cultivation (sunflower plants, herbal plants)|
|5||Land concession for plantation of non-timber forest products and herbal plants||Land concession for plantation of non-timber forest products and herbal plants|
|6||Land concession for farming of poultry, small animals, i.e.: goats, sheep and others||Land concession for farming of poultry, small animals, i.e.: goats, sheep and others|
|7||Land concession for farming of aquatic animals, wild animals||Land concession for farming of aquatic animals, wild animals|
Based on Decree No. 135/PM, dated 25/05/2009 on the lease or concession of Government lands, Article 28 on the lease or concession approval of degraded forestland for agricultural and tree plantation activities, and Article 29 on the concession approval of barren forestland for agricultural and tree plantation activities as follows:
- Degraded forestland of not more than 150 hectares per 1 project, with a maximum lease or concession period not more than 30 years with extensibility depending on case by case.
- Barren forestland of not more than 500 hectares per 1 project, with a maximum lease or concession period not more than 30 years with extensibility depending on case by case.
- Degraded forestland of between 150 – 15,000 hectares per 1 project, with a maximum lease or concession period more than 30 years, but not more than 40 years, with extensibility depending on case by case.
- Barren forest land of between 500 – 30,000 hectares per 1 project, with a maximum lease or concession period more than 40 , but not more than 60 years, with extensibility depending on case by case.
Complementary documents required for the request submission
- Applications for investment in printed form of general concession projects (agriculture sector).
- Brief proposal about the project development, certified by the President or Director-General of the company (or attorney).
- History-experiences of company, license or business registration certificate of company.
- General business agreement (in case there are two or more companies).
- Power of Attorney for the representative of stockholders or company, in case the person is not in the top position of the company.
- Map of project location;
- Supporting letter from financial institutes or banks (if any).
- Other related documents (if any).
The application must be submitted in 6 sets and investors keep 1 copy of investment application as the evidence.
Processes for considering the approval requests of possibility study in agricultural development project or an application for signing MOU
Functional scope of investors to implement in the MOU in general consists of:
- The study of social-economic data, natural suitability, for instance: soil, climate, altitude, rainfall, water source, land use rights, local labour, exploration of forest conditions and forest resources and others as necessary;
- Create economic-technical analysis(Feasibility Study “FS”), then request the legalization from Planning Department, Ministry of Agriculture and Forestry (Planning Department will act as the coordinator of concerned departments of its Ministry, for example, Forestry Department, Agriculture Department, Land Department and other concerned departments for comments and resolution in legalizing the economic-technical analysis). At local levels, it is the Provincial or municipal Agriculture and Forestry Section;
- Create a report of Environment and Social Impact Assessment “ESIA” or Initial Environment Examination “IEE” including suitable solution standards, then request the legalization from National Resource and Environment Sector;
- Create Environment Management and Monitoring Plan “Emptor Social Management and Monitoring Plan “SMMP” in the operational plan, focusing on the protection of water sources and environment, area exploration, village development, people’s involving promotion in the production, technology utilization and others through benefit sharing;
Deposit of MOU’s warranties:
After signing the MOU, the investors shall deposit warranties at the PI sector at central or provincial levels, then, the sector will issue the certificate to the investors.
The value of the warranties is classified as per the area size of land concession as follows:
|Area of land concession||Warranties|
|2 – 150 hectares||30.000 US dollars|
|151 – 1.000 hectares||50.000 US dollars|
|1.000 hectares and above||70.000 US dollars|