Commission VI Of The DPR Affirms That The HGBT Policy For Fertilizer Must Be Continued

Gas prices (Photo: dock. Antara)

JAKARTA - Commission VI of the DPR RI supports the policy of Certain Natural Gas Prices (HGBT) for the fertilizer industry to be continued. The availability of gas and affordable prices are important factors in supporting the government's target of achieving national food self-sufficiency.

Chairman of Commission VI DPR RI Anggia Ermarini said that by the end of 2024 the government needs to ensure the sustainability of the HGBT policy for Pupuk Indonesia. This policy is also able to encourage the government's target of achieving food self-sufficiency.

"The HGBT has been extended or updated? At the end of tofu, December 2024 there must be an update. Commission VI encourages the government to make policies to maintain HGBT below 6 dollars per MMBTU to maintain the availability of fertilizer for the community," said Anggia in the RDP Commission VI DPR RI, Monday, December 2.

Member of Commission VI of the Indonesian House of Representatives, Subardi, also emphasized that the government's target of self-sufficiency in food needs an important role in Indonesian fertilizers. Food production greatly affects the availability of fertilizers.

"Food production without fertilizer is impossible. So the role of Indonesian fertilizer is important in maintaining the stability of fertilizer prices and their availability," said Subardi.

President Director of Pupuk Indonesia Rahmad Pribadi said that Pupuk Indonesia continues to increase the production and availability of fertilizers for all Indonesian farmers and people. Until November 30, 2024, the realization of subsidized fertilizer distribution reached 6.7 million tons.

"Based on this contract, it has reached 88.9 percent, so that by the end of the year we can ensure that we will achieve 100 percent," said Rahmad.

Rahmad said that Pupuk Indonesia has a production capacity of 14.5 million tons. The details are 9.4 million tons for urea and 4.6 million tons for NPK fertilizer.

"With a urea capacity of 9.4 million tons, Pupuk Indonesia is the largest producer of nitrogen-based fertilizer or urea fertilizer in Asia Pacific, Middle East, and North Africa," said Rahmad.

Rahmad explained that gas price support was able to contribute greatly to the affordability of fertilizer prices for farmers. Fertilizer is a determining factor in agricultural productivity.

"The fertilizer contributes 62 percent to agricultural productivity. But with 75 percent energy, because in reality Urea is 71 percent of the cost component of gas. The increase in gas prices will have a significant impact on fertilizer prices," said Rahmad.

Each increase in 1 dollar gas per MMBTU has an impact on an increase in subsidized budget free of IDR 2.23 trillion. So the stability of gas prices is able to boost national fertilizer price stability.