Jakarta, cartitleloans Indonesia
—
The government officially lowered it
fertilizer prices
subsidies of up to 20 percent starting Wednesday (20/10).This policy is considered to be able to lighten the burden on farmers and strengthen the efficiency of the national fertilizer industry without increasing the burden on the APBN.
Member of Commission IV DPR RI from the Golkar faction, Adrianus Sidot, said that this policy was a strategic step that had a direct impact on the productivity and welfare of farmers.
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The price reduction was accompanied by reform of fertilizer distribution governance, which has now been reduced from a long administrative chain to a simpler one.
“The reduction in fertilizer prices will really benefit farmers, and it is hoped that it will be able to increase their production and welfare,” said Adrianus as reported
detikcom
, Wednesday (20/10)
Improvements in the distribution system are also considered to enable fertilizer to arrive more quickly in the hands of farmers, minimizing the risk of crop failure which often occurs due to distribution delays, especially in rainfed rice fields.
Asia Sidot also emphasized the importance of supervision in the field to avoid price disparities above the Highest Retail Price (HET).
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Currently, the price of urea fertilizer has decreased from IDR 2,250 to IDR 1,800 per kilogram, NPK from IDR 2,300 to IDR 1,840 per kilogram, NPK cocoa from IDR 3,300 to IDR 2,640 per kilogram.
Meanwhile, ZA specifically for sugar cane is from IDR 1,700 to IDR 1,360 per kilogram, and organic fertilizer from IDR 800 to IDR 640 per kilogram.
Apart from reducing prices, the government is also increasing the volume of subsidized fertilizer to 700 thousand tons until 2029.
The reform of fertilizer distribution governance carried out by the Ministry of Agriculture (Kementan) is said to be one of the key factors towards national food self-sufficiency.
Previously, fertilizer distribution was regulated through 145 regulations and involved signatures from 12 ministers, 38 governors and 514 regents/mayors.The new system allows the Ministry of Agriculture to coordinate directly with factories, and factories distribute directly to kiosks.
As a result, the Ministry of Agriculture managed to save its budget by up to IDR 10 trillion and reduce fertilizer production costs by 26 percent.This efficiency is even projected to be able to increase PT Pupuk Indonesia (Persero)’s profits to IDR 7.5 trillion in 2026.
As a control measure, the Ministry of Agriculture also revoked the permits of 2,039 retail kiosks that were proven to have committed violations in the distribution of subsidized fertilizer.
This efficiency step marks a major shift in national fertilizer governance – from lengthy bureaucracy to a fast, transparent and results-oriented distribution system.
If consistently implemented, this policy has the potential to be a catalyst for increasing agricultural productivity and food security in Indonesia.
(chri)
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