President Prabowo Subianto Cuts Fertilizer Prices, Farmers Are Given Two Protectors

JAKARTA - President Prabowo Subianto lowered the subsidized fertilizer price by 20 percent when the world fertilizer price actually soared. This policy was taken to hold down farmers' production costs and keep the 2026 planting season from the pressure of the global supply crisis.

Minister of Agriculture Andi Amran Sulaiman said the decision was a government anticipation after the world fertilizer supply chain was disrupted by geopolitical conflicts.

"President Prabowo from the beginning saw the world heading towards an unstable period. He ordered us not to wait for a crisis, but to anticipate it through policy," said Amran, Sunday, May 3.

Global pressure is indeed not light. Since February 2026, conflicts in the Middle East have disrupted the fertilizer supply chain. China also restricts the export of key nitrogen fertilizers. As a result, world urea prices are said to have jumped more than 40 percent in recent weeks.

The 20 percent price reduction applies to subsidized fertilizers used by farmers, including urea, NPK, and ZA. The government also simplified the distribution management by cutting 145 regulations through presidential instructions.

With the pruning, the fertilizer flow is made shorter from the Ministry of Agriculture to PT Pupuk Indonesia to farmers. Access is also prepared based on the KTP and expanded through kiosks to the village level.

The government targets affordable food centers before the 2026 gadu planting season. The goal is clear: fertilizer is available on time, is not scarce, and does not fall into the wrong hands.

Downstream, the government holds the income of farmers through the Government Purchase Price or HPP of dry milled rice harvested at Rp6,500 per kilogram. This policy provides protection after the production cost is suppressed from the fertilizer side.

Amran also said that the government's rice reserves had exceeded 5 million tons. The stock was considered an important cushion against El Nino, price volatility, and global supply chain disruptions.