Article
Pupuk Indonesia Will Continue Distributing Subsidized Fertilizer Even Though Its Contract Will Expire
26 May 2025
Jakarta - President Director of PT Pupuk Indonesia (Persero), Rahmad Pribadi, emphasized that Pupuk Indonesia will continue distributing subsidized fertilizer as part of the company's commitment to protecting farmers during the planting season. This is despite the fact that the first contract with the Ministry of Agriculture, worth IDR 26.7 trillion, will expire in July 2024.
Rahmad explained that the ongoing administrative process for additional funding has prevented the Ministry of Agriculture from finalizing the fertilizer subsidy contract with Pupuk Indonesia. The contract for the distribution of the first subsidy allocation, with a volume of 4.7 million tons, is scheduled to expire in July 2024.
"I know for certain that the Minister of Agriculture went all out on the same day I reported it. He immediately called the President (Joko Widodo) and the Minister of Finance, and an agreement was reached. Based on these ministerial-level agreements, we have also been instructed not to stop distributing subsidized fertilizer," he explained in a statement on Friday (January 19, 2024).
The government, through Ministerial Decree No. 249 of 2024, has increased the fertilizer subsidy allocation from 4.7 million tons to 9.55 million tons, or IDR 54 trillion, this year. This measure aims to ensure that farmers' subsidized fertilizer needs are met and agricultural productivity continues to increase.
Pupuk Indonesia, along with the Ministry of Agriculture and the government, is committed to ensuring fertilizer distribution continues in accordance with the Ministerial Decree. He explained that this is part of the joint commitment between Pupuk Indonesia and the government to protect farmers during this year's planting season.
With this commitment, it is hoped that the distribution of subsidized fertilizer will run smoothly and on time, thereby maintaining national agricultural productivity. The government and Pupuk Indonesia continue to strive to simplify bureaucracy and increase the efficiency of subsidized fertilizer distribution to support national food security.
"As of July 12, 2024, Pupuk Indonesia has distributed 3.41 million tons of subsidized fertilizer. Currently, there is still a stock of 1.7 million tons of urea and NPK fertilizer ready for distribution," he explained.
On a separate occasion, Rahmad also explained that it wasn't the 9.55 million ton allocation that had run out, but rather the contracts based on the first allocation, which had already been depleted. More substantive matters must be prioritized while the administrative process continues.
"The substantive issue is that we must boost agricultural productivity. Therefore, we will continue to distribute subsidized fertilizer in accordance with government directives to protect farmers," he said.
Meanwhile, the General Chair of the West Java KTNA, Otong Wiranta, stated that outreach plays a crucial role in supporting the subsidized fertilizer policy. He noted that there are still problems with the distribution of subsidized fertilizer.
"This outreach is crucial to intensify because many farmers still don't understand the procedures for registering and redeeming subsidized fertilizer. As many as 1 million farmers in West Java have not yet come to redeem their subsidized fertilizer. Furthermore, the regeneration and quality of farmer human resources also require special attention. More than 65 percent of farmers in West Java are elderly, and 37 percent of the total farmers have less than elementary school education," he explained.
Rahmad explained that the ongoing administrative process for additional funding has prevented the Ministry of Agriculture from finalizing the fertilizer subsidy contract with Pupuk Indonesia. The contract for the distribution of the first subsidy allocation, with a volume of 4.7 million tons, is scheduled to expire in July 2024.
"I know for certain that the Minister of Agriculture went all out on the same day I reported it. He immediately called the President (Joko Widodo) and the Minister of Finance, and an agreement was reached. Based on these ministerial-level agreements, we have also been instructed not to stop distributing subsidized fertilizer," he explained in a statement on Friday (January 19, 2024).
The government, through Ministerial Decree No. 249 of 2024, has increased the fertilizer subsidy allocation from 4.7 million tons to 9.55 million tons, or IDR 54 trillion, this year. This measure aims to ensure that farmers' subsidized fertilizer needs are met and agricultural productivity continues to increase.
Pupuk Indonesia, along with the Ministry of Agriculture and the government, is committed to ensuring fertilizer distribution continues in accordance with the Ministerial Decree. He explained that this is part of the joint commitment between Pupuk Indonesia and the government to protect farmers during this year's planting season.
With this commitment, it is hoped that the distribution of subsidized fertilizer will run smoothly and on time, thereby maintaining national agricultural productivity. The government and Pupuk Indonesia continue to strive to simplify bureaucracy and increase the efficiency of subsidized fertilizer distribution to support national food security.
"As of July 12, 2024, Pupuk Indonesia has distributed 3.41 million tons of subsidized fertilizer. Currently, there is still a stock of 1.7 million tons of urea and NPK fertilizer ready for distribution," he explained.
On a separate occasion, Rahmad also explained that it wasn't the 9.55 million ton allocation that had run out, but rather the contracts based on the first allocation, which had already been depleted. More substantive matters must be prioritized while the administrative process continues.
"The substantive issue is that we must boost agricultural productivity. Therefore, we will continue to distribute subsidized fertilizer in accordance with government directives to protect farmers," he said.
Meanwhile, the General Chair of the West Java KTNA, Otong Wiranta, stated that outreach plays a crucial role in supporting the subsidized fertilizer policy. He noted that there are still problems with the distribution of subsidized fertilizer.
"This outreach is crucial to intensify because many farmers still don't understand the procedures for registering and redeeming subsidized fertilizer. As many as 1 million farmers in West Java have not yet come to redeem their subsidized fertilizer. Furthermore, the regeneration and quality of farmer human resources also require special attention. More than 65 percent of farmers in West Java are elderly, and 37 percent of the total farmers have less than elementary school education," he explained.