Pupuk Indonesia Enters New Era in Subsidized Fertilizer Distribution

Entang Sastraatmadja
December 30, 2024 | 4:56 pm
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Pupuk Indonesia holds the Rembuk Tani event to distribute subsidized fertilizers in Wonogiri, Central Java, on Nov. 21, 2024. (Handout Photo)
Pupuk Indonesia holds the Rembuk Tani event to distribute subsidized fertilizers in Wonogiri, Central Java, on Nov. 21, 2024. (Handout Photo)

Jakarta. The subsidized fertilizer distribution policy in Indonesia is entering a new phase that is simpler and more effective.

The government has doubled the subsidized fertilizer quota from 4.7 million tons to 9.55 million tons. About 500,000 tons are organic fertilizers. This increase aims to make sure that farmers have access to fertilizers during the planting season.

The government has also cut the bureaucratic red tape related to the distribution. The process now only involves three institutions: the agriculture ministry, state-owned fertilizer company Pupuk Indonesia, as well as the distributors and farmer groups.

During a session with the country's lawmakers, Pupuk Indonesia's president director had raised several issues that needed attention for a better subsidized fertilizer governance.

As of May, about 58 percent of the farmers registered in the distribution's digital platform e-RDKK had not got their fertilizers. Farmers felt that they only received a small portion of the subsidized fertilizers, even citing that it was more costly to travel to the kiosks to pick up the fertilizers. In response, Pupuk Indonesia has renewed its data. The company has also widely communicated these programs through the so-called Pupuk Indonesia Sapa and Tebus Bersama initiatives.

The regional regulations had also set some challenges. Some regents and governments had not issued their decrees on the subsidized fertilizers. Even if such rules are already in place, some regional governments still put a limit on the farmers that could get the fertilizers, which were distributed each month or per planting season.

The kiosks also reported an inaccuracy worth Rp 15.6 billion, or around $966,168, between January and March. This also slowed down the distribution at the kiosk level.

The changes in the planting season also prompt adjustments in the fertilizer distribution.

President Prabowo Subianto is aiming to achieve food self-sufficiency in the shortest possible time. The government has undertaken some policies to achieve the said goal, including mandating that the subsidized fertilizers should make their way to the country's farmers starting early next year. We should commend such political determination. If we can speed up the distribution, why delay it?

The government has pledged to distribute the subsidized fertilizers in January 2025, while hoping that the farmers can receive them on time.

Pupuk Indonesia has prepared 1.4 million tons in supply as of the end of December 2024. They have also already signed the procurement and distribution contracts a week ago. It is expected that the distribution should start on time in early 2025, in line with chief food affairs minister's wish to support food self-sufficiency.

All in all, despite the challenges, the government and Pupuk Indonesia are working hard to ensure that subsidized fertilizer distribution runs smoothly to support food self-sufficiency in the next three years.

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Entang Sastraatmadja chairs the regional executive board of the Indonesian Farmers Association in West Java.

The views expressed in this article are those of the author.

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