Mechanism Of Handover Points In New Presidential Decree, Minister Of Agriculture Ensures No Subsidized Fertilizer Leaks

JAKARTA - The government strengthens the management of subsidized fertilizer distribution by issuing Presidential Regulation (Perpres) Number 6 of 2025 concerning the Distribution of Subsidized Fertilizers for the Agricultural Sector.

This regulation introduces the handover point mechanism as a new control node to ensure subsidy fertilizer is right on target and free from leakage. Minister of Agriculture (Mentan) Andi Amran Sulaiman emphasized that this policy is a clear proof of the state's presence in ensuring the farmer's right to fertilizer.

"This Presidential Regulation shows that the state is present. Fertilizer must go directly to the hands of farmers, without leakage. The system is now more assertive, more measurable," Amran said in his official statement, Monday, August 4.

Through this new governance, the government together with Pupuk BUMN as the implementer of distribution, are responsible for the distribution of fertilizers to the handover point. This mechanism clarifies accountability and facilitates supervision of the distribution of subsidized fertilizers.

The Director General of Agricultural Infrastructure and Facilities (Dirjen PSP), Andi Nur Alam Syah, explained that the handover point is the location of the final distribution set by the Pupuk BUMN. The party appointed as the recipient at the handover point will have clear legal responsibility.

"The handover point becomes a new control node. The appointed party will be legally bound by the Pupuk BUMN, so that supervision is clearer and more measurable," said Andi.

Meanwhile, the Director of Pupuk and Pesticide, Jekvy Hendra, said that this Presidential Regulation also changed the mechanism for the appointment of distributors. If previously involved many parties, now the distributor is directly chosen by the Pupuk BUMN who is responsible for the handover point.

"The handover points can be in the form of official retailers, Gapoktan, Pokdakan, or cooperatives engaged in fertilizer," explained Jekvy.

From the farmer side, the mechanism for redeeming subsidized fertilizers still refers to electronic data on the Definitive Plan for Group Needs (e-RDKK). Farmers registered in this system can redeem subsidized fertilizer by showing their KTP or Farmer Card at the official handover or kiosk point.

"As long as the farmer's name is registered, they can redeem the subsidy fertilizer using an ID card or Kartan," added Jekvy.

With the presence of this Presidential Regulation, it is hoped that the distribution of subsidized fertilizers will become more orderly, on target, and have a direct impact on increasing productivity in the national agricultural sector.