JAKARTA - Deputy Chairman of the Indonesian House of Representatives' Financial Accountability Agency (BAKN) Herman Khaeron said Danantara Indonesia would provide support to improve the issue of subsidized fertilizer distribution.
Herman said, the role of Danantara in this case is to carry out revitalization and investment that can contribute to national fertilizer needs.
"So Danantara will also focus and have a direction to be able to build or revitalize factories, even for other investments," he said after a meeting with the President Director of Pupuk Indonesia and COO Danantara Dony Oskaria, at the DPR building, Jakarta, Thursday, September 11.
Currently, said Herman, the problem faced is that the majority of the raw materials for fertilizer come from imports. He said that if the portion is reduced, it can save the budget in the fertilizer supply chain.
"For example, 60 percent of components are still imported, still depending on imports, 60 percent. So if 60 percent of these imports can be cut, the chain is cheaper. So there is a possibility that we can save from 60 percent of the cost dependence on these components," he said.
Not only that, said Herman, there are also problems in distributing subsidized fertilizers to farmers. One of them, there are electronic findings, the definitive plan for the need for farmer groups (e-RDKK) is no longer on target.
"Often we hear that farmers lack subsidized fertilizers. On the other hand, the distribution of subsidized fertilizers is not 100 percent and this is what then there are some findings. E-RDK is no longer in accordance with the updating of the right target," he explained.
Therefore, said Herman, in a meeting with the President Director of Pupuk Indonesia Rachmat Pribadi, COO Danantara Dony Oskaria, Deputy Minister of BUMN Kartika Wirjoatmodjo, Ministry of Trade and Ministry of Agriculture, and Ministry of Finance, BAKN has given assignments.
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The Ministry of Finance certainly has to make a scheme. The subsidy scheme is not only of course subsidizing directly to prices so that they are lower and accepted by subsidized fertilizer recipients. But on the other hand, the investment is also for road fertilizer factories. So that in the future the fertilizer factory will only be more efficient," he said.
According to Herman, all parties have the same commitment to revitalize the subsidized fertilizer program and create new governance.
"This is solely to jointly support Pak Prabowo Subianto's program to lead to sovereignty and food independence," he said.
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