2.06 Million Tons Of Subsidized Fertilizers Have Distributed By April 2023

JAKARTA - PT Pupuk Indonesia (Persero) has distributed 2.06 million tons of subsidized fertilizer until April 2023.

The total distribution is equivalent to 69.4 percent of the allocation until April 2023 according to the SK Service of 2.97 million tonnes.

The Corporate Secretary of Pupuk Indonesia, Wijaya Laksana, explained that the subsidized fertilizer that has been distributed is in accordance with the allocation set by the government.

The total allocation for subsidized fertilizer set by the government in 2023 is 7.85 million tonnes. In detail, 4.64 million tons of Urea fertilizer and 3.21 million tons of NPK. Meanwhile, Pupuk Indonesia's production plan for 2023 is 12.3 million tons, both subsidized and non-subsidized fertilizers.

"As of April 10, 2023, 2.06 million tons of subsidized fertilizer have been distributed, consisting of 1.20 million tons of urea and 843,740 tons of NPK," said Wijaya, Wednesday, April 12.

Pupuk Indonesia distributes subsidized fertilizers to farmers in accordance with Minister of Agriculture Regulation (Permentan) Number 10 of 2022 concerning Procedures for Determining the Allocation and Highest Retail Price (HET) of Subsidized Fertilizers in the Agricultural Sector.

In the regulation, there are criteria for farmers who are entitled to subsidized fertilizer allocations such as being required to join farmer groups, be registered in the agricultural extension management information system (Simluhtan), work on a maximum of two hectares of land.

Focus on 9 Types of Strategic Commodities

Currently, said Wijaya, subsidized fertilizers are focused on urea and NPK and there are 9 types of strategic commodities, namely rice, corn, soybeans, chilies, shallots, garlic, coffee, sugarcane, and cocoa. Previously, fertilizer was intended for around 72 commodities.

That way, continued Wijaya, farmers who do not meet the criteria in Permentan 10 of 2022 are not entitled to receive subsidized fertilizer allocations.

Meanwhile, in terms of stock, Pupuk Indonesia recorded a total of 663,034 tons as of April 11, 2022. This amount of stock is available at Warehouse Line III or district level.

"When compared with the minimum provision stock set by the government, the amount available reaches 264 percent or three times the provision," he said.

Wijaya revealed that the stock of subsidized fertilizer available at the Line III Warehouse consisted of 381,488 tons of Urea and 281,546 tons of NPK. These stock figures are equivalent to 255 percent and 277 percent respectively of the minimum stock provisions set by the government.

Wijaya revealed that farmers who receive subsidized fertilizer allocations can only redeem it at complete fertilizer kiosks (KPL) or Pupuk Indonesia's official partners.

Meanwhile, official KPL are required to sell subsidized fertilizers in accordance with Permendag No. 4 of 2023 concerning the Procurement and Distribution of Subsidized Fertilizers for the Agricultural Sector, namely subsidized fertilizer retailers or kiosks carry out their own distribution of subsidized fertilizers only to farmers and/or farmer groups in areas of responsibility he replied.

Official KPL must sell subsidized fertilizer to farmers and/or farmer groups based on the allocation of subsidized fertilizer and not exceeding the HET, put up a nameplate with a size of 0.50 m x 0.75 m as an official retailer from a distributor appointed officially by Holding BUMN Pupuk, put up the list price does not exceed the HET, as well as redemption of subsidized fertilizers to distributors designated according to the SPJB.

Furthermore, said Wijaya, retailers or kiosks sell subsidized fertilizers to farmers as needed, without coercion, and are not justified in bundling or partnering.

Given the limited allocation of subsidized fertilizers and only farmers who meet the criteria or requirements can buy subsidized fertilizers, retailers or kiosks are encouraged to provide non-subsidized fertilizers.