The scarcity of fertilizer harms farmers, the Central Java Police reveals a subsidy deviation of Rp4.3 billion

JAKARTA - The practice of abuse of subsidized fertilizer distribution which has lasted for years has finally been revealed. Central Java Regional Police dismantled the network which caused a shortage of fertilizer in a number of regions and forced farmers to buy fertilizer above the Highest Retail Price (HET).

In the disclosure, the Central Java Police arrested three suspects with initials RKM, WKD, and JJ. The three of them are suspected of being involved in the distribution of subsidized fertilizer with a total state loss of Rp. 4.3 billion.

Director of Special Criminal Investigation of the Central Java Police, Kombes Pol Djoko Julianto explained, the perpetrators have different roles, ranging from capital providers to collectors. The modus operandi used is to fund farmers to redeem subsidized fertilizer from the allocation of farmers' groups, then the fertilizer is controlled and sold again to other regions outside the official distribution channels.

"After the fertilizer was redeemed, the perpetrators asked for the fertilizer to be collected and redistributed. This practice benefits some parties, but has an impact on the scarcity of fertilizer in other areas," said Kombes Pol Djoko Julianto at a press conference at the Central Java Police's Ditreskrimsus, Banyumanik, Semarang City, Wednesday (4/2/2026).

Due to the scarcity, farmers in a number of regions are forced to buy subsidized fertilizer at prices far above government regulations. If the official price of one sack of fertilizer is around Rp90 thousand, in the market the fertilizer is sold again at a price of Rp130 thousand to Rp190 thousand per sack, depending on the type and level of scarcity.

The abuse of this distribution is known to have taken place since 2020. The total subsidized fertilizer that was embezzled reached around 665.5 tons, an amount that should be sufficient to meet the fertilizer needs of agricultural land of approximately 2,218.6 hectares.

"The state's loss of Rp. 4.3 billion is the value of fertilizer subsidies that the government has issued but has not been utilized in accordance with its provisions," explained Kombes Pol Djoko.

In the disclosure of this case, the police confiscated 300 subsidized fertilizer bags consisting of 40 bags of Phonska fertilizer and 260 bags of Urea fertilizer. In addition, two vehicles in the form of trucks and pickups used to transport fertilizer, as well as a number of mobile phones belonging to the suspects were also secured as evidence.

The suspects are charged with the Trade Law, the Economic Crime Law, and provisions related to the management of subsidized fertilizer, with a maximum penalty of five years in prison.

The Central Java Provincial Agriculture and Livestock Service emphasized that subsidized fertilizer should not be freely traded. The representative of the service, Yuni, said that the fertilizer that farmers have redeemed must be used according to its provisions and cannot be transferred to other parties or regions.

Meanwhile, PT Pupuk Indonesia Regional Central Java appreciates the police's steps in cracking down on fertilizer distribution irregularities. PT Pupuk Indonesia staff, Dimas Ari, said that law enforcement is important to ensure that subsidized fertilizer actually reaches the farmers who are entitled.