JAKARTA - Good news for farmers throughout the country. Starting today, the government officially lowered the fertilizer price by 20 percent. This decision was taken to ease the burden on domestic farmers.
Minister of Agriculture (Mentan), Andi Amran Sulaiman said the decline in fertilizer prices was a direct instruction from President Prabowo Subianto.
"Today it was announced at the direction of the President, on the orders of the President, please, Wednesday, it was announced. The fertilizer price has fallen by 20 percent. Effective from today, this is good news," Amran said during a press conference quoted from the Ministry of Agriculture's YouTube, Wednesday, October 20.
Amran believes this price decline will have a direct impact on improving farmers' welfare. With lower production costs, it is hoped that Farmers' Exchange Rate (NTP) will also increase and agricultural productivity will increase in the coming years.
In detail, the price of Urea fertilizer fell from IDR 2,250 per kilogram (kg) to IDR 1,800 per kg, or from IDR 112,500 to IDR 90,000 per sack. Then, NPK fertilizer decreased from IDR 2,300 per kg to IDR 1,840 per kg, or from IDR 115,000 to IDR 92,000 per sack.
"Please note well, from Rp2,250 per kilo, to Rp1,800, down Rp450 per kg throughout Indonesia. Calculated per sack Urea, this is from Rp112,500 to Rp90,000 per sack, this is extraordinary," he said.
Amran ensured that the reduction in fertilizer prices did not increase the burden on the state budget. The policy of reducing fertilizer prices is the result of massive efficiency in national fertilizer distribution and production.
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This is the result of productive effective efficiency. This is the result of budget efficiency carried out by the government, effectiveness, efficiency, and so on. This does not increase the APBN budget. This does not increase the APBN budget. But lower the price by 20 percent," he said.
On the other hand, Amran said the government would take firm action against anyone who increases the price of fertilizer in the field. He said, if a kiosk or retailer is caught raising the price, the permit will be revoked.
"When someone raises the price of fertilizer, the permit will be revoked and prosecuted. We have to guard this," said Amran.
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