REGULATION OF THE REGENCY OF GRESIK

NUMBER 5 OF 2024
ON
FACILITATION OF BUSINESS PARTNERSHIP ACTIVITIES IN REGION

BY THE BLESSINGS OF ALMIGHTY GOD

REGENT OF GRESIK,

Considering : a. that to achieve economic equity and encourage the growth

of micro, small, and medium enterprises in the field of
investment, a collaboration based on the principles of
mutual need, trust, strengthening, and benefit between
large enterprises and micro, small, and medium
enterprises in the Region is necessary;
b. that to provide direction, foundation, and legal certainty
for large enterprises and micro, small, and medium
enterprises in implementing partnerships in the field of
investment, regulations regarding the implementation of
partnerships between large enterprises and micro, small,
and medium enterprises in the Region are needed;
c. that in accordance with the provisions of Government
Regulation Number 7 of 2021 on Ease, Protection, and
Empowerment of Cooperatives and Micro, Small, and
Medium Enterprises, the Region implements policies and
programs for businesses, financing and guarantees, and
partnerships according to its authority;
d. that based on the considerations as referred to in point a,
point b, and point c, it is necessary to issue a Regional
Regulation on Facilitation of Business Partnership
Activities in Region;

Observing : 1. Article 18 section (6) of the 1945 Constitution of the

Republic of Indonesia;
2. Law Number 12 of 1950 on Establishment of Regencies
within the Province of East Java, as amended by Law
Number 2 of 1965 on the Change in Borders of the
Surabaya Municipality and Surabaya Level II Region by
amending Law Number 12 of 1950 on Establishment of
Regencies within the Province of East Java and Law
Number 16 of 1950 on Establishment of Major Cities
within the Provinces of East Java, Central Java, West
Java, and the Special Region of Yogyakarta (State Gazette
of the Republic of Indonesia of 1965 Number 19,
 -2-

Supplement to the State Gazette of the Republic of

Indonesia Number 2730);
3. Law Number 25 of 2007 on Investment (State Gazette of
the Republic of Indonesia of 2007 Number 67,
Supplement to the State Gazette of the Republic of
Indonesia Number 4724);
4. Law Number 20 of 2008 on Micro, Small, and Medium
Enterprises (State Gazette of the Republic of Indonesia of
2008 Number 93, Supplement to the State Gazette of the
Republic of Indonesia Number 4866) as amended by Law
Number 6 of 2023 on Enactment of Government
Regulation in Lieu of Law Number 2 of 2022 on Job
Creation to Become Law (State Gazette of the Republic of
Indonesia of 2023 Number 41, Supplement to the State
Gazette of the Republic of Indonesia Number 6856);
5. Law Number 25 of 2009 on Public Services (State Gazette
of the Republic of Indonesia of 2009 Number 112,
Supplement to the State Gazette of the Republic of
Indonesia Number 5038);
6. Law Number 12 of 2011 on Legislation Making (State
Gazette of the Republic of Indonesia of 2011 Number 82,
Supplement to the State Gazette of the Republic of
Indonesia Number 5234), as amended several times, last
by Law Number 13 of 2022 on the Second Amendment to
Law Number 12 of 2011 on Legislation Making (State
Gazette of the Republic of Indonesia of 2022 Number 143,
Supplement to the State Gazette of the Republic of
Indonesia Number 6801);
7. Law Number 23 of 2014 on Local Governments (State
Gazette of the Republic of Indonesia of 2014 Number 244,
Supplement to the State Gazette of the Republic of
Indonesia Number 5587), as amended several times, last
by Law Number 6 of 2023 on Enactment of Government
Regulation in Lieu of Law Number 2 of 2022 on Job
Creation to Become Law (State Gazette of the Republic of
Indonesia of 2023 Number 41, Supplement to the State
Gazette of the Republic of Indonesia Number 6856);
8. Government Regulation Number 96 of 2012 on
Implementation of Law Number 25 of 2009 on Public
Services (State Gazette of the Republic of Indonesia of
2012 Number 215, Supplement to the State Gazette of the
Republic of Indonesia Number 5357);
9. Government Regulation Number 12 of 2017 on Guidance
and Supervision of Local Government Administration
(State Gazette of the Republic of Indonesia of 2017
Number 73, Supplement to the State Gazette of the
Republic of Indonesia Number 6041);
10. Government Regulation Number 5 of 2021 on Risk-Based
Business Licensing (State Gazette of the Republic of
Indonesia of 2021 Number 15, Supplement to the State
Gazette of the Republic of Indonesia Number 6617);
11. Government Regulation Number 6 of 2021 on
Implementation of Business Licensing in Region (State
Gazette of the Republic of Indonesia of 2021 Number 16,
Supplement to the State Gazette of the Republic of
Indonesia Number 6618);
 -3-

12. Government Regulation Number 7 of 2021 on Ease,

Protection, and Empowerment of Cooperatives and Micro,
Small, and Medium Enterprises (State Gazette of the
Republic of Indonesia of 2021 Number 17, Supplement to
the State Gazette of the Republic of Indonesia Number
6619);
13. Government Regulation Number 71 of 2021 on Gresik
Special Economic Zone (State Gazette of the Republic of
Indonesia of 2021 Number 142, Supplement to the State
Gazette of the Republic of Indonesia Number 6689);
14. Presidential Regulation Number 10 of 2021 on Investment
Business Entities (State Gazette of the Republic of
Indonesia of 2021 Number 61), as amended by
Presidential Regulation Number 49 of 2021 on
Amendment to Presidential Regulation Number 10 of
2021 on Investment Business Entities (State Gazette of
the Republic of Indonesia of 2021 Number 128);
15. Regulation of the Minister of Home Affairs Number 80 of
2015 on Regional Regulations Making (State Bulletin of
the Republic of Indonesia of 2015 Number 2036), as
amended by Regulation of the Minister of Home Affairs
Number 120 of 2018 on Amendment to Regulation of the
Minister of Home Affairs Number 80 of 2015 on Regional
Regulations Making (State Bulletin of the Republic of
Indonesia of 2018 Number 157);
16. Regulation of the Minister of Home Affairs Number 138 of
2017 on Implementation of One-Stop Integrated Services
in Region (State Bulletin of the Republic of Indonesia of
2017 Number 1956);
17. Regulation of the National Public Procurement Agency
Number 14 of 2018 on Electronic Procurement Services
(State Bulletin of the Republic of Indonesia of 2018
Number 767);
18. Regulation of the Investment Coordinating Board Number
4 of 2021 on Guidelines and Procedures for Risk-Based
Business Licensing Services and Investment Facilities
(State Bulletin of the Republic of Indonesia of 2021
Number 272);
19. Regulation of the Minister of Home Affairs Number 25 of
2021 on Investment and One-Stop Integrated Services
Office (State Bulletin of the Republic of Indonesia of 2021
Number 885);
20. Regulation of the Minister of Investment/Head of the
Investment Coordinating Board Number 1 of 2022 on
Implementation Procedures for Partnerships in
Investment between Large Enterprises and Micro, Small,
and Medium Enterprises in Region (State Bulletin of the
Republic of Indonesia of 2022 Number 171);
21. Regulation of the Regency of Gresik Number 13 of 2011
on Protection, Empowerment of Traditional Markets and
Arrangement of Modern Markets in Regency of Gresik
(Regional Gazette of the Regency of Gresik of 2011
Number 13);
22. Regulation of the Regency of Gresik Number 12 of 2016
on Formation of Regional Apparatus of Regency of Gresik
 -4-

(Regional Gazette of the Regency of Gresik of 2016

Number 18), as amended several times, last by Regional
Regulation Number 8 of 2021 on the Second Amendment
to Regulation of the Regency of Gresik Number 12 of 2016
on Formation of Regional Apparatus of Regency of Gresik
(Regional Gazette of the Regency of Gresik of 2021
Number 24);
23. Regulation of the Regency of Gresik Number 5 of 2019 on
Licensing of Food and Beverage Services (Regional Gazette
of the Regency of Gresik of 2019 Number 5);
24. Regulation of the Regency of Gresik Number 8 of 2020 on
Provision of Incentives and Ease of Investment (Regional
Gazette of the Regency of Gresik of 2020 Number 6,
Supplement to the Regional Gazette of the Regency of
Gresik Number 6);

With the Joint Approval of

THE REGIONAL HOUSE OF REPRESENTATIVES OF REGENCY OF GRESIK
And
THE REGENT OF GRESIK

HAS DECIDED:

To issue : REGIONAL REGULATION ON FACILITATION OF BUSINESS

PARTNERSHIP ACTIVITIES IN REGION.

CHAPTER I
GENERAL PROVISIONS

Article 1
In this Regional Regulation:
1. Region means the Regency of Gresik.
2. Regent means the Regent of Gresik.
3. Local Government means the Government of the Regency
of Gresik.
4. Office means the Regional apparatus administering
government affairs in the fields of cooperatives, small and
medium enterprises, industry, and trade in Regency of
Gresik.
5. Investment and One-Stop Integrated Services Office
means the Regional apparatus administering government
affairs in the field of investment in Regency of Gresik.
6. Manpower Office means the regional apparatus
administering government affairs in the field of manpower
in Regency of Gresik.
7. Business Actor means any individuals or business
entities, whether incorporated or not, established and
domiciled or conducting activities within the jurisdiction
of the Republic of Indonesia, either individually or
collectively through agreements to carry out business
activities in various economic fields.
8. Facilitation means actions of guidance in the form of
providing technical guidelines and instructions, direction,
technical assistance, supervision, assistance,
collaboration, as well as monitoring and evaluation
conducted by the Local Government.
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9. Partnership means cooperation in the interconnectedness

of businesses, both directly and indirectly, based on the
principles of mutual necessity, trust, strengthening, and
benefit, involving Micro, Small, and Medium Enterprises,
especially where Large Enterprises invest.
10. Micro Enterprises mean productive businesses owned by
individuals and/or individual business entities that meet
the criteria set forth in the Legislation.
11. Small Enterprises mean independent productive
economic businesses conducted by individuals or
business entities that are not subsidiaries or branches of
companies that are owned, controlled, or part, either
directly or indirectly, of Medium or Large Enterprises,
meeting the criteria for Small Enterprises as regulated by
legislation.
12. Medium Enterprises mean independent productive
economic businesses conducted by individuals or
business entities that are not subsidiaries or branches of
companies that are owned, controlled, or part, either
directly or indirectly, of Small or Large Enterprises,
meeting the criteria for Medium Enterprises as regulated
by legislation.
13. Large Enterprises mean productive economic businesses
conducted by business entities with a net worth or
annual sales exceeding that of Medium Enterprises,
including national state-owned or private enterprises,
joint ventures, and foreign enterprises conducting
economic activities in the Region.
14. Micro, Small, and Medium Enterprises mean micro,
small, and medium enterprises that meet the criteria in
accordance with the provisions of Legislation.
15. Business Licensing means the legality granted to
business actors to start and run their business and/or
activities.
16. Business Sector means any form of business activity
conducted to produce goods or services in various
economic sectors.
17. Evaluation means the assessment and appraisal of
business partnership activities based on the Legislation.
18. Local Budget (Anggaran Pendapatan dan Belanja Daerah),
hereinafter abbreviated as APBD, means the Local Budget
of Regency of Gresik.

CHAPTER II
PRINCIPLES, OBJECTIVES, AND SCOPE

Article 2
Facilitation of business partnership activities in the Region is
carried out based on the principles of:
a. cooperative relations;
b. equitable efficiency;
c. sustainability;
d. professionalism;
e. economic democracy;
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f. independence;
g. national economic unity; and
h. environmental awareness.

Article 3
The implementation of business Partnership activities in the
field of investment in the Region aims to:
a. realize equitable opportunities and contributions from
Large, Medium, Micro, Small Enterprises, and
Cooperatives in improving the Regional economy;
b. enhance the capacity and competence of Micro, Small,
Medium Enterprises, and Cooperatives in the Region to
collaborate with Large Enterprises, both domestic and
foreign;
c. encourage the growth of Micro, Small, Medium
Enterprises, and Cooperatives in the Region to integrate
into the supply chain for strengthening added value and
production bases domestically; and
d. ensure certainty and continuity of mutually beneficial
businesses between Large Enterprises and Micro, Small,
Medium Enterprises, and Cooperatives in the Region.

Article 4
The scope of this Regional Regulation includes:
a. Role of Local Government;
b. Partnership Obligations;
c. Partnership Patterns;
d. Partnership Agreements;
e. Forms of Partnership Facilitation; and
f. Financing.

CHAPTER III
ROLE OF LOCAL GOVERNMENT

Article 5
(1) The Local Government provides ease, protection, and
empowerment for business activities in the Region.
(2) The ease, protection, and empowerment for business
activities as referred to in section (1) are implemented
through facilitation of business partnership activities.
(3) Business partnership activities in the Region are required
to be carried out for priority investment sectors and/or
sectors that are required to partner in accordance with
the provisions of legislation.
(4) In realizing business partnership activities in the Region,
the Local Government acts as a facilitator, regulator, and
stimulator.
(5) Facilitation of business partnership activities as referred
to in section (2) includes:
a. providing information;
b. ease of licensing;
c. strengthening institutions; and/or
d. coordinating with stakeholders.
(6) In providing facilitation of business partnership activities
as referred to in section (3), the Local Government is
tasked with:
 -7-

a. formulating, preparing, establishing, and/or

implementing general policies regarding the
facilitation of business partnership activities in the
Region;
b. collecting and managing data on business actors
who require facilitation for business partnership
activities in the Region;
c. coordinating the availability, capability, and
development of institutions and human resources for
business actors who will implement business
partnership activities in the Region;
d. monitoring and evaluating the implementation of
business partnership activities programs in the
Region; and
e. resolving issues that arise in the implementation of
business partnership activities in the Region in
accordance with the provisions of Legislation.

CHAPTER IV
PARTNERSHIP OBLIGATIONS

Article 6
(1) Large and Medium Enterprises are required to form
partnerships with Micro and Small Enterprises that
partner with Micro Enterprises in the Region, for priority
investment sectors and/or sectors that are required to
partner in accordance with the provisions of Legislation,
implemented with consideration of partnership principles
and upholding healthy business ethics.
(2) The Local Government encourages Local--Owned
Enterprises to prioritize the use of products from Micro
and Small Enterprises that partner with Micro
Enterprises in the Region in the procurement of
goods/services.
(3) Further provisions regarding partnership obligations by
business actors in the Region with Cooperatives are
regulated in a Regent Regulation.

Article 7
(1) Large and Medium Enterprises, when forming business
partnership activities, are required to prioritize Micro and
Small Enterprises that partner with Micro Enterprises
located within the same sub-district as the Large and
Medium Enterprises.
(2) In the event that there are no Micro and Small
Enterprises that partner with Micro Enterprises that meet
the criteria for partnership within the same sub-district
as referred to in section (1), Large and Medium
Enterprises may partner with Micro and Small
Enterprises that collaborate with micro enterprises in
other sub-districts within the Region.
(3) In the event that there are no Micro and Small
Enterprises that partner with Micro Enterprises that meet
the criteria for partnership within the same sub-district
as referred to in section (1), and there are no Micro and
 -8-

Small Enterprises in the Region as referred to in section

(2), Large and Medium Enterprises may partner with
other Micro and Small Enterprises outside the Region.

Article 8
(1) The implementation of Partnership with Micro and Small
Enterprises in the Region is adjusted according to the
type of work and the estimated value of the work
committed by Large and Medium Enterprises.
(2) In the event that the type of work and estimated value of
the work as referred to in section (1) cannot be performed
by Micro and Small Enterprises, the Partnership is
implemented with domestic investment companies in the
Region.
(3) Domestic investment companies as referred to in section
(2) are required to involve Micro and Small Enterprises in
the Region in the implementation of the Partnership.
(4) In implementing partnerships, the Local Government
through the relevant Office encourages business activities
in the Region to utilize local electronic catalogs.
(5) Further provisions regarding the Procedures for using
local electronic catalogs in the implementation of
partnerships as referred to in section (4) are regulated in
a Regent Regulation.

Article 9
(1) Large and Medium Enterprises engaged in business
activities that fall under priority investment sectors and
sectors required to partner in accordance with the
provisions of Legislation as referred to in Article 6 section
(1), are required to prepare a Partnership commitment
that includes:
a. type of work;
b. estimated value of the work; and
c. timeframe for the Partnership implementation.
(2) Large and Medium Enterprises engaged in investment
activities and/or sectors required to partner in
accordance with the provisions of Legislation as referred
to in Article 6 section (1), must provide a Partnership
commitment statement at the time of applying for
business permits through the Online Single Submission
system.
(3) Large and Medium Enterprises that have obtained a
business permit as referred to in section (1) are required
to submit a Partnership commitment statement to obtain
facilities as regulated in the legislation regarding
guidelines and procedures for risk-based business
licensing services and investment facilities.
(4) For the implementation of the Partnership commitment as
referred to in section (1), the Local Government prepares a
list of potential partners from Micro and Small
Enterprises that partner with Micro Enterprises in the
Region, ready to be partnered with Large and Medium
Enterprises.
 -9-

(5) Large and Medium Enterprises may select potential

partners from Micro and Small Enterprises that are
partnered with Micro Enterprises in the Region, ready for
partnership as referred to in section (4).
(6) In the event that Micro and Small Enterprises partnering
with Micro Enterprises in the Region fail to meet the
competencies according to the type of work committed,
Large Enterprises and Medium Enterprises may propose
candidates for Micro and Small Enterprises that partner
with Micro Enterprises.
(7) Candidates for Micro and Small Enterprises as referred to
in section (5) do not have any ownership or managerial
affiliation with Large or Medium Enterprises.

Article 10
(1) The implementation of business Partnerships is evidenced
by a Partnership agreement document signed by Large or
Medium Enterprises with Micro and Small Enterprises.
(2) The Partnership agreement document as referred to in
section (1) must be submitted before the deadline or at
the latest at the time of implementation of the Partnership
according to the characteristics of the business sector.
(3) The Partnership agreement document as referred to in
section (1) at least contains:
a. identities of the parties;
b. business activities;
c. rights and obligations of the parties;
d. form of development;
e. duration of the Partnership;
f. duration and payment mechanism; and
g. dispute resolution.

Article 11
Partnerships for the required business sectors in accordance
with the provisions of Legislation as referred to in Article 6
section (1) must be conducted continuously as long as Large
and Medium Enterprises are still conducting business
activities.

CHAPTER V
PARTNERSHIP PATTERNS

Article 12
(1) In carrying out partnership activities, the parties have
equal legal standing and be subject to Indonesian law.
(2) The partnership activities as referred to in section (1) are
carried out through Partnership Patterns which include:
a. core-plasma;
b. subcontract;
c. franchise;
d. general trade;
e. distribution and agency;
f. supply chain; and
g. other forms of partnership.
 -10-

(3) Other forms of partnership as referred to in section (2)

point g at least include:
a. profit sharing;
b. operational cooperation;
c. joint venture;
d. outsourcing; and/or
e. infrastructure development (construction).

Article 13
(1) In the core-plasma partnership pattern as referred to in
Article 12 section (2) point a, Large and Medium
Enterprises act as the core, while Micro and Small
Enterprises that partner with micro enterprises act as the
plasma.
(2) The core as referred to in section (1) is responsible for
mentoring and developing the plasma in:
a. providing and preparing land;
b. providing production facilities;
c. providing technical guidance on production and
business management;
d. acquiring, mastering, and enhancing necessary
technology;
e. financing;
f. marketing;
g. guarantees;
h. providing information; and/or
i. providing other assistance needed to improve
efficiency, productivity, and business insights.

Article 14
(1) In the subcontracting partnership pattern as referred to
in Article 12 section (2) point b, large Enterprises and
Medium Enterprises act as contractors, while Micro and
Small Enterprises that partner with micro enterprises act
as subcontractors.
(2) Contractors as referred to in section (1) provide support to
subcontractors in the form of:
a. opportunities and ease to carry out part of the
production and/or its components;
b. opportunities and ease to obtain raw materials
produced continuously at reasonable quantities and
prices;
c. guidance and technical production and/or
management capabilities;
d. acquisition, mastery, and enhancement of necessary
technology;
e. financing and arrangements for payment systems
that do not harm either party; and/or
f. efforts not to unilaterally terminate the relationship.

Article 15
(1) In the franchise partnership pattern as referred to in
Article 12 section (2) point c, Large Enterprises or
Medium Enterprises act as franchisors, and Micro and
Small Enterprises that partner with micro enterprises act
as franchisees.
 -11-

(2) Large Enterprises expanding their business through

franchising provide opportunities and prioritize Micro and
Small Enterprises that partner with micro enterprises in
the Region that have sufficient capacity and feasibility.

Article 16
(1) In the general trade Partnership pattern as referred to in
Article 12 section (2) point d, it can be conducted in the
form of marketing cooperation and provision of business
locations from Large Enterprises or Medium Enterprises
to Micro and Small Enterprises that partner with micro
enterprises in the Region, conducted openly.
(2) The fulfillment of goods and services needed by Large
Enterprises is prioritized by procuring the necessary
goods and services production outputs.
(3) The payment system arrangement between Large
Enterprises or Medium Enterprises and Micro and Small
Enterprises should not disadvantage either party.

Article 17
In the distribution and agency Partnership pattern as referred
to in Article 12 section (2) point e, Large Enterprises and
Medium Enterprises grant special rights to market goods and
services to Micro and Small Enterprises that partner with
Micro Enterprises.

Article 18
(1) In the supply chain Partnership Pattern as referred to in
Article 12 section (2) point f, Large Enterprises and
Medium Enterprises act as recipients of goods, while
Micro and Small Enterprises that partner with Micro
Enterprises act as suppliers of goods.
(2) The supply chain Partnership pattern as referred to in
Article 12 section (2) point f can be conducted through
business activities involving Micro and Small Enterprises
that partner with Micro Enterprises in the Region, which
at least includes:
a. management of product transfer conducted by
companies with raw material suppliers;
b. distribution of products from companies to
consumers; and/or
c. management of the availability of raw materials, raw
material supply, and the fabrication process.
(3) The fulfilment of goods and services needed by Large or
Medium Enterprises through the supply chain
partnership pattern prioritize the procurement of
production outputs from Micro and Small Enterprises
that partner with Micro Enterprises, as long as they meet
the required quality standards of goods and services.

Article 19
(1) In the profit-sharing Partnership pattern as referred to in
Article 12 section (3) point a, Micro and Small Enterprises
that partner with Micro Enterprises act as executors
running businesses financed or owned by Large and
Medium Enterprises.
 -12-

(2) The parties involved in the profit-sharing pattern

contribute according to their capabilities and resources,
as agreed upon by both parties.
(3) The extent of profit sharing received or losses borne by
the business actors engaged in profit-sharing
Partnerships is based on the agreement reached.

Article 20
In the operational cooperation Partnership pattern as referred
to in Article 12 section (3) point b, Micro and Small
Enterprises that partner with Micro Enterprises and Large and
Medium Enterprises operate on a temporary basis until the
work is completed.

Article 21
(1) In the joint venture partnership pattern as referred to in
Article 12 section (3) letter c, Micro and Small Enterprises
that partner with Micro Enterprises can engage in
business partnerships with Large and Medium
Enterprises.
(2) In conducting joint economic activities, Large and
Medium Enterprises and Micro and Small Enterprises
that partner with Micro Enterprises share proportionally
in ownership, profits, risks, and company management.

Article 22
(1) In the outsourcing Partnership pattern as referred to in
Article 12 section (3) point d, Micro and Small Enterprises
that partner with Micro Enterprises can engage in
partnerships with Large and Medium Enterprises to carry
out work or parts of work outside the main tasks of the
Large or Medium Enterprises.
(2) The Partnership pattern as referred to in section (1) is
implemented in fields and types of businesses that do not
constitute the main work and/or are not core
components.
(3) In the Partnership pattern as referred to in section (1),
Large Enterprises and Medium Enterprises act as the
owners of the work, while Micro and Small Enterprises
that partner with Micro Enterprises act as providers and
implementers of the work services.
(4) The implementation of the Partnership pattern as referred
to in section (1) to section (3) is carried out in accordance
with the provisions of Legislation.

Article 23
(1) In the Partnership pattern for infrastructure development
(construction) as referred to in Article 12 section (3) point
e, Large Enterprises and Medium Enterprises may
allocate infrastructure development work that includes:
a. procurement of materials;
b. procurement of equipment; and
c. execution of construction.
(2) Micro and Small Enterprises that partner with Micro
Enterprises carry out the procurement and execution of
 -13-

construction development in accordance with the

provisions of Legislation.

CHAPTER VI
PARTNERSHIP AGREEMENT

Article 24
(1) Every form of partnership conducted by Large
Enterprises, Micro Enterprises, Small Enterprises, and
Medium Enterprises is documented in a partnership
agreement.
(2) The partnership agreement as referred to in section (1) is
made in writing in Bahasa Indonesia.
(3) In the event that one party is a foreign individual or legal
entity, the partnership agreement as referred to in section
(1) is made in both Bahasa Indonesia and a foreign
language.
(4) The partnership agreement is evidenced by the agreement
document as referred to in Article 10 section (3).

CHAPTER VII
FORMS OF PARTNERSHIP FACILITATION

Part One
Data Collection

Article 25
(1) The Local Government, through the Office, the Investment
and One-Stop Integrated Services Office, and the
Manpower Office, conduct data collection on business
actors, including Large Enterprises, Micro, Small, and
Medium Enterprises in the Region in accordance with the
provisions of Legislation.
(2) The Local Government may involve the business
community, universities, community organizations, and
other relevant stakeholders in carrying out the data
collection as referred to in section (1).
(3) The data collection as referred to in section (1) includes
the following activities:
a. Data Collection;
b. Data Management; and
c. Data Validation.
(4) The Office, the Investment and One-Stop Integrated
Services Office, and the Manpower Office evaluate and
update data on Large Enterprises and Micro, Small, and
Medium Enterprises in the Region periodically each year.

Part Two
Assessment and Establishment

Article 26
(1) The Local Government assesses and establishes a list of
business actors ready to engage in partnerships according
to the criteria set forth in the Legislation.
 -14-

(2) Micro and Small Enterprises that partner with Micro

Enterprises prepared to engage in partnerships are
determined based on the following criteria:
a. business activities that do not use technology or that
use simple technology;
b. business activities that have specific processes, are
labour-intensive, and possess unique cultural
heritage that is specific and passed down; and/or
c. business capital not exceeding Rp10,000,000,000.00
(ten billion rupiah) excluding the value of land and
buildings.
(3) The determination of business actors ready for
partnership as referred to in section (1) must consider the
following aspects:
a. legality;
b. quality;
c. quantity; and
d. sustainability.
(4) The Local Government may provide incentives and/or
ease of doing business to Micro and Small Enterprises in
the Region to meet the criteria and readiness aspects for
partnership as referred to in section (2) and section (3).
(5) Further provisions regarding the criteria and procedures
for assessing Micro and Small Enterprises ready for
partnership as referred to in section (2) are regulated in a
Regent Regulation.

Part Three
Incentives for Partnership and Ease of Doing Business

Article 27
The Local Government may provide incentives and ease of
doing business for partnerships between Large and Medium
Enterprises with Micro and Small Enterprises in accordance
with the provisions of Legislation.

Article 28
(1) Incentives as referred to in Article 27 are provided to
Micro and Small Enterprises in the form of:
a. reduction or exemption of local taxes;
b. reduction or exemption of local levies;
c. provision of capital assistance to Micro Enterprises,
Small Enterprises, and/or Cooperatives;
d. assistance for research and development for Micro
Enterprises, Small Enterprises, and/or Cooperatives;
e. vocational training facilities for Micro Enterprises,
Small Enterprises, and/or Cooperatives; and/or
f. interest subsidies on loans for program credits.
(2) The incentives as referred to in Article 27 are granted to
Medium and Large Enterprises in the form of:
a. reduction or exemption of local taxes; and/or
b. reduction or exemption of local levies.
(3) Incentives for Medium and Large Enterprises as referred
to in section (2) are granted under the following
conditions:
 -15-

a. conducting innovation and product development

oriented towards exports;
b. absorbing local workers;
c. using appropriate and environmentally friendly
technology;
d. providing education and training for Micro and Small
Enterprises;
e. providing assistance to Micro and Small Enterprises;
and
f. involving Micro and Small Enterprises in expanding
market access
(4) The ease of doing business for partnerships as referred to
in section (1) includes:
a. fast, accurate, inexpensive, and non-discriminatory
funding;
b. provision of infrastructure, production and
processing facilities, raw materials, auxiliary
materials, and packaging;
c. licensing and tariff reductions for means and
infrastructure;
d. facilitation in fulfilling the requirements for obtaining
financing; and/or
e. obtaining funds, business locations, fields and
business activities, or procurement of goods and
services for the government.
(5) The ease of doing business as referred to in Article 27
granted to business actors includes:
a. provision of infrastructure, production and
processing, raw materials, auxiliary materials, and
packaging;
b. access to information through electronic catalogs or
similar means;
c. ease of licensing;
d. facilitation in fulfilling the requirements for obtaining
financing; and/or
e. ease of obtaining information on partnerships in
business activities, business locations, or
procurement of goods and services for the
government.
(6) Further provisions regarding the procedures for granting
partnership incentives and ease of doing business in the
context of partnerships are regulated in a Regent
Regulation.

Part Four
Reporting and Evaluation

Article 29
(1) Business actors who engage in partnerships are required
to submit reports on the implementation of the
Partnership through the Online Single Submission system
periodically.
(2) The report as referred to in section (1) at least includes:
a. realization of the partnership pattern;
b. report on the use of incentives and/or ease of doing
business; and
 -16-

c. plan for the development of partnership activities.

(3) Further provisions regarding the implementation of
reporting as referred to in section (1) and section (2) are
regulated in a Regent Regulation.

Article 30
(1) The Regent evaluates the results of the partnership
implementation report as referred to in Article 29 section
(1) at least 1 (one) time a year.
(2) The results of the evaluation as referred to in section (1)
serve as the basis for the Local Government in
formulating regulations and policies in facilitating
partnership activities in the following year.
.
Article 31
Micro and Small Enterprises that have formed partnerships
and have reached the scale of Large or Medium Enterprises
may continue their business activities in accordance with the
provisions of Legislation.

CHAPTER VIII
FINANCING

Article 32
(1) All financing for facilitating partnership activities in the
Region is sourced from:
a. State Budget;
b. Local Budget;
c. grants; and/or
d. other non-binding sources.
(2) State-Owned Enterprises and Local-Owned Enterprises in
the Region may provide financing for Micro and Small
Enterprises in the form of loans, grants, and/or other
financing that is part of social and environmental
responsibility programs.
(3) The provisions for granting loans, grants, and/or other
financing as referred to in section (2) are implemented
based on the prevailing Legislation.

CHAPTER IX
ADMINISTRATIVE SANCTIONS

Article 33
(1) Large and Medium Enterprises that do not fulfil their
partnership obligations with Micro and Small Enterprises
that partner with micro enterprises in the Region as
referred to in Article 6 section (1) may be subject to
administrative sanctions in accordance with the
provisions of Legislation regarding risk-based business
licensing.
(2) The imposition of administrative sanctions as referred to
in section (1), is conducted gradually, with the obligation
for Large and Medium Enterprises to make improvements
in the implementation of Partnerships.
 -17-

(3) The gradual imposition of sanctions as referred to in

section (2) is in accordance with the provisions of
Legislation regarding the oversight of business licensing.

Article 34
(1) Any business actor who provides false documents and/or
information regarding their business activities, and/or
abuses the business partnership facilities provided by the
Local Government may be subject to administrative
sanctions.
(2) The administrative sanctions as referred to in section (1)
include:
a. revocation of business partnership facilities; or
b. temporary cessation of business activities.
(3) The Local Government transfers the partnership facilities
from business actors who are sanctioned with the
revocation of business partnership facilities as referred to
in section (2) point a to other business actors.
(4) Further provisions regarding the Procedures for imposing
administrative sanctions are regulated in a Regent
Regulation.

CHAPTER X
TRANSITIONAL PROVISION

Article 35
At the time this Regional Regulation comes into effect, all
partnership activities that have been implemented in the
Region remain valid and must be adjusted to the provisions of
this Regional Regulation.
.
CHAPTER XI
CLOSING PROVISIONS

Article 36
(1) The implementing regulations of this Regional Regulation
must be issued not later than 6 (six) months from the
date of its promulgation.
(2) The Investment and One-Stop Integrated Services Office is
authorized and responsible for coordinating the
preparation of the implementing Regulations as referred
to in section (1).

Article 37
This Regional Regulation comes into effect on the date of its
promulgation.
24 December 2024
 ELUCIDATION OF
REGULATION OF THE REGENCY OF GRESIK
NUMBER 5 OF 2024
ON
FACILITATION OF BUSINESS PARTNERSHIP ACTIVITIES IN REGION

I. GENERAL
The Government of the Regency of Gresik continues to encourage
investment and business activities in the Region by supporting all policy
instruments. This includes formulating policies to create a conducive
investment and business climate aimed at enhancing the economic
competitiveness of the Region, particularly concerning non-renewable
natural resources, which carry a high risk of environmental damage.
Therefore, such activities must adhere to the norms, standards,
procedures, and criteria established by the Local Government.
In addition, one of the policies being developed is the formulation of a
Regional Regulation on Facilitation of Business Partnership Activities in
Region. The goal is to provide broad opportunities for the community
and/or investors, as well as Micro, Small, and Medium Enterprises to
develop products, businesses, and invest in Regency of Gresik. The types
of investments and their locations must still comply with applicable
regulations, including the Job Creation Law, the Investment Law, and
relevant licensing regulations.
In the context of government administration, the Local Government is
obligated to realize Regional economic development and strengthen healthy
economic growth based on economic democracy. To achieve this,
facilitating business partnerships in accordance with the legislation is
necessary. For the implementation of accelerated Regional income
enhancement, it is crucial to provide legal certainty and protection fairly to
parties developing an investment climate. This legal certainty will serve as
a guideline in efforts to accelerate the realization of investments and
business activities in Regency of Gresik, thereby expediting regional
development and economic growth while simultaneously increasing
Regional revenues.
The purpose of drafting the Regional Regulation on Facilitation of
Business Partnership Activities in Region is to execute Regional authority
and to follow up on the mandate of Article 176 and Article 185 point b of
Law Number 6 of 2023 on Enactment of Government Regulation in Lieu of
Law Number 2 of 2022 on Job Creation to Become Law, as well as
Government Regulation Number 6 of 2021 on Implementation of Business
Licensing in Region, where the Regency Government needs to establish a
Regional Regulation on Facilitation of Business Partnership Activities in
Region, guided by the prevailing Legislation.
 -2-

II. ARTICLE BY ARTICLE

Article 1
Sufficiently clear.

Article 2
Point a
The term "principle of cooperative relations" means the principle
that underlies the empowerment of Micro, Small, and Medium
Enterprises as part of the national economy, organized based on
economic democracy with principles of cooperation, equitable
efficiency, sustainability, environmental awareness,
independence, balanced progress, and national economic unity
for the welfare of all Indonesian people.
Point b
The term "principle of equitable efficiency" means the principle
that underlies the implementation of Micro, Small, and Medium
Enterprises empowerment by prioritizing equitable efficiency in
efforts to create a fair, conducive, and competitive business
climate.
Point c
The term "principle of sustainability" means the principle that
systematically seeks to promote the development process
through the empowerment of Micro, Small, and Medium
Enterprises conducted continuously, thereby forming a resilient
and independent economy.
Point d
The term "principle of professionalism" means services or
assistance provided in accordance with protocols and regulations
in the relevant field.
Point e
The term "principle of economic democracy" means the
empowerment of Micro, Small, and Medium Enterprises
organized as part of the national economic development to
achieve the people's prosperity.
Point f
The term "principle of independence" means the empowerment of
Micro, Small, and Medium Enterprises conducted while
maintaining and prioritizing the potential, capabilities, and
independence of Micro, Small, and Medium Enterprises.
Point g
The term "principle of national economic unity" means the
empowerment of Micro, Small, and Medium Enterprises which
are part of the development of national economic unity.
Point h
The term "principle of environmental awareness" means the
empowerment of Micro, Small, and Medium Enterprises
conducted with due consideration for and prioritization of
environmental protection and preservation.

Article 3
Sufficiently clear.

Article 4
Sufficiently clear.
 -3-

Article 5
Sufficiently clear.

Article 6
The term "priority sector" means business areas that meet the
criteria: a. national strategic programs/projects; b. capital-intensive;
c. labour-intensive; d. high technology; e. pioneering industry; f.
export-oriented; and/or g. focused on research, development, and
innovation activities.

Article 7
Sufficiently clear.

Article 8
Sufficiently clear.

Article 9
Sufficiently clear.

Article 10.
Sufficiently clear.

Article 11
Sufficiently clear.

Article 12
Section (1)
Sufficiently clear.
Section (2)
Point a
The term "core-plasma" means a partnership pattern
between a group of partner businesses as plasma and the
core company that partners with them. The core company
provides resources such as Land, production Means,
Technical guidance, Management, Collection,
Administration, and Marketing of production results, while
also continuing to produce for its own needs. Meanwhile,
the partner business as plasma meets the company's needs
according to the agreed requirements.
Point b
The term "subcontract" means a partnership pattern
between a partner company and a group of partner
businesses that produce the necessary components required
by the company as part of its production.
Point c
The term "franchise" means a partnership pattern between a
group of partner businesses and a partner company that
grants licensing rights, trademarks, and distribution
channels to the partner group as franchisees, along with
management guidance assistance.
Point d
The term "general trade" means a partnership pattern where
businesses market their products with a group that supplies
the necessary needs for the company.
 -4-

Point e
The term "distribution" means a partnership pattern
involving the distribution of production results from
producers to consumers.
The term "agency" means a form of partnership where small
or micro enterprises are granted special rights to market
goods and services from medium or large enterprises as
their partners.
Point f
The term "supply chain" means a partnership pattern
between Small or Micro Enterprises and Large or Medium
Enterprises regarding the flow of goods by transforming raw
materials into products in an efficient and economical
manner.
Point g
Sufficiently clear.
Section (3)
Point a
The term "profit sharing" means a Partnership between
Large or Medium Enterprises and Micro and Small
Enterprises, where the share of profits is calculated from the
net business results, and any losses are shared based on a
written agreement.
Point b
The term "operational cooperation" means a partnership
pattern where partner groups provide land, means, and
workers, while the partner company provides funding or
capital and/or resources to cultivate a commodity.
Point c
The term "joint venture" means a Partnership carried out in
the procurement/provision of services or specific work that
is not the main job and/or not a core component in a
business field of Large and Medium Enterprises by Micro
and Small Enterprises.
Point d
The term "outsourcing" means a partnership pattern
involving the delegation of part of the work to another
company through a work contract or provision of worker
services.
Point e
The term "infrastructure development (construction)" means
a partnership pattern between Micro and Small Enterprises
and Medium and Large Enterprises through the provision of
means and infrastructures that support business activities.

Article 13
Sufficiently clear.

Article 14
Sufficiently clear.

Article 15
Sufficiently clear.
 -5-

Article 16
Sufficiently clear.

Article 17
Sufficiently clear.

Article 18
Sufficiently clear.

Article 19
Sufficiently clear.

Article 20
Sufficiently clear.

Article 21
Sufficiently clear.

Article 22
Sufficiently clear.

Article 23
Sufficiently clear.

Article 24
Sufficiently clear.

Article 25
Sufficiently clear.

Article 26
Section (1)
Sufficiently clear.
Section (2)
Sufficiently clear.
Section (3)
Point a
The term aspect of "legality" means the validity and juridical
recognition that Micro and Small Enterprises have in the
form of permits in accordance with Legislation.
Point b
The term aspect of "quality" means the totality of the value
and characteristics of the products of Micro and Small
Enterprises that partner with micro enterprises that support
their ability to satisfy consumer needs.
Point c
The term aspect of "quantity" means the amount of
goods/services that can be produced from the production
process carried out by Micro or Small Enterprises that
partner with micro enterprises over a certain period.
Point d
The term "sustainability" means the consistency and
continuity of the production process of goods/services
produced by Micro and Small Enterprises that partner with
micro enterprises, aimed at ensuring the continuity of
business activities.
 -6-

Section (4)
Sufficiently clear.
Section (5)
Sufficiently clear.

Article 27.
Sufficiently clear.

Article 28
Sufficiently clear.

Article 29
Sufficiently clear.

Article 30
Sufficiently clear.

Article 31
Sufficiently clear.

Article 32
Sufficiently clear.

Article 33
Sufficiently clear.

Article 34
Sufficiently clear.

Article 35
Sufficiently clear.

Article 36
Sufficiently clear.

Article 37
Sufficiently clear.

SUPPLEMENT TO THE REGIONAL GAZETTE OF THE REGENCY OF GRESIK

OF 2024 NUMBER 5