Potentially Explosive Food Prices, Government Strengthens Fertilizer Subsidy For Local Farmers

JAKARTA - The government through the Coordinating Minister for the Economy Airlangga Hartarto said that the availability of fertilizers, especially subsidized ones, was one of the important priorities for now.

According to him, this is a strategic step to anticipate the spike in food prices, which is projected to continue to climb in the future.

Airlangga explained that the government will impose a priority scale for main food crops in order to obtain subsidized fertilizers in order to maintain supply.

“Of course there will be restrictions related to what food crop commodities. The priorities are rice, corn, soybeans, shallots, chilies, sugar cane, and cocoa. Then, for fertilizers that receive subsidies, the types of urea and NPK are limited," he said via an online channel after meeting the President at the Palace on Tuesday, April 5.

Airlangga added that the shrinkage had to be taken considering that domestic fertilizer raw materials must come from abroad.

“Currently, the price of urea fertilizer is close to US$1,000, as are the types of potash fertilizers and KCL. Indonesia imports it and one of them is from Ukraine. Therefore, the President has warned that subsidized fertilizers can be right on target,” he said.

If this scheme is successful, Airlangga believes the challenges in the food sector can be overcome.

"Farmers are expected to be able to receive fertilizer, so of course the price of fertilizer will not create a shortage and ultimately encourage the availability of safe food," concluded Coordinating Minister Airlangga.