North Sumatra Subsidized Fertilizer Stock Reaches 177% of Government Provisions

  • Posted by User01
  • 27 December2022
  • 08:53WIB
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MEDAN - PT Pupuk Indonesia (Persero) recorded subsidized fertilizer stocks for the North Sumatra region of 33,334 tons as of December 22, 2022. This total stock figure is equivalent to 177 percent of the provisions set by the government, namely 18,856 tons. This was conveyed by SVP PSO Western Region Pupuk Indonesia, Agus Susanto at the PSO Western Region Media Gathering event in Medan, Friday (23/12).

Agus said that the total stock consisted of two types of fertilizer, namely 18,154 tons of urea and 15,180 tons of NPK. The stock provisions prepared by Pupuk Indonesia are also in accordance with the Minister of Trade Regulation (Permendag) Number 15/M-DAG/PER/4/2013 concerning Procurement and Distribution of Subsidized Fertilizers for the Agricultural Sector.

"We distribute subsidized fertilizers in North Sumatra Province in accordance with applicable regulations, and maintain stock availability based on subsidized fertilizer stock provisions. We distribute according to the Decree of each region, and we ensure the availability of stock every month to support the distribution of subsidized fertilizers," said Agus.

According to Agus, the availability of subsidized fertilizer stocks, which reached 177 percent of the provisions determined by the government, is sufficient to meet the needs for the next three weeks. This is also an effort for Pupuk Indonesia to welcome the distribution of subsidized fertilizers in 2023.

Agus revealed that the allocation of subsidized fertilizer nationally was set at 8,042,130 tons for 2022. Specifically, the allocation for North Sumatra Province was set at 328,385 tons consisting of 168,487 tons of Urea, 126,693 tons of NPK, 10,951 tons of SP-36, 11,490 of ZA. tons, and Organic 10,764 tons.

As of December 22, 2022, Agus revealed that the distribution or distribution of subsidized fertilizer had reached 312,728 tons or the equivalent of 95 percent of the total allocation decree for 2022 for North Sumatra Province. This figure consisted of 159,131 tons of Urea, 122,644 tons of NPK, 10,108 tons of SP-36, 10,836 tons of ZA, and 10,009 tons of organics.

Agus said all subsidized fertilizer stocks in North Sumatra will be distributed to 22 Line III warehouses involving 83 distributors and 2,366 complete fertilizer kiosks (KPL) spread across 25 regencies and 8 cities.

Agus further explained that the distribution of subsidized fertilizer was distributed to all lines in accordance with the Decree (SK) of regional heads as a derivative rule from Minister of Agriculture Regulation (Permentan) No. 41 of 2021 which in the middle of this year was revised to become Minister of Agriculture Number 10 of 2022 concerning Procedures for Determining the Allocation and Highest Retail Price (HET) of Subsidized Fertilizers in the Agricultural Sector.

According to the Minister of Agriculture Number 10 of 2022, subsidized fertilizers are currently focused on two types of fertilizers, namely Urea and NPK. These two types of subsidized fertilizer are intended for nine strategic agricultural commodities that have an impact on inflation. The nine commodities are rice, corn, soybeans, chilies, shallots, garlic, sugar cane, cocoa and coffee.

Farmers who are entitled to subsidized fertilizers include joining a farmer group, being registered with the SIMLUHTAN (Agricultural Extension Management Information System), cultivating a maximum of two hectares of land, and using a Farmer's Card (for certain areas). Agus further explained that farmers can redeem subsidized fertilizers at designated official kiosks to serve local farmer groups. 

"So one of the goals of our gathering today is to inform media friends about this new regulation. Because there has been a change in the types of subsidized fertilizers and their commodities, from previously around 70 commodities with Permentan Number 10 of 2022 to just 9 commodities," he said.

Based on Minister of Agriculture Decree No. 734 of 2022, the total allocation of subsidized fertilizer for 2023 is set at 9,013,706 tons consisting of 5,570,330 tons of urea fertilizer, 3,232,373 tons of NPK, and 211,003 tons of NPK special cocoa formula. In terms of price, each HET is Rp. 2,250 per kg for urea fertilizer, Rp. 2,300 per kg for NPK fertilizer, and Rp. 3,300 for NPK fertilizer for cocoa or also known as special formula NPK.

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