JAKARTA – As a state-owned company that has the mandate to produce and distribute subsidized fertilizers, PT Pupuk Indonesia (Persero) must provide stocks of subsidized fertilizers in line III warehouses or at the district level in accordance with Minister of Trade Regulation (Permendag) Number 4 of 2023 concerning Procurement and Distribution of Subsidized Fertilizers for the Agricultural Sector.

In this regulation, the stock of subsidized fertilizer prepared by Pupuk Indonesia must meet the needs of farmers for the next two to three weeks. "Available and visible stocks of subsidized fertilizers are piling up in warehouses in Sergai Regency, North Sumatra (North Sumatra) in order to comply with Permendag Number 4 of 2023. These subsidized fertilizer stocks will then be distributed to farmers who are entitled to receive fertilizer subsidy allocations according to Government regulations," said VP Regional Sales (PW) 1 of Pupuk Indonesia, Wawan Arjuna.

Wawan revealed that Pupuk Indonesia provided subsidized fertilizer stocks in North Sumatra of 41,935 tons as of July 17, 2023. The total stock of subsidized fertilizers consisted of 24,557 tons of urea fertilizer and 15,340 tons of NPK. All of these subsidized fertilizers are available at line III warehouses and will be distributed to official Pupuk Indonesia kiosks and can be redeemed by eligible farmers. The total stock of subsidized fertilizers in North Sumatra is equivalent to 365 percent of the minimum requirements set by the Government, or enough to meet the needs for the next two to three weeks.

Based on the Minister of Agriculture Regulation Number 10 of 2022, the Government stipulates criteria for farmers who are entitled to receive fertilizer subsidy allocations, namely that they must join a farmer group, be registered with the SIMLUHTAN (Agricultural Extension Management Information System), cultivate a maximum of two hectares of land, and use a Farmer's Card (for certain areas). Farmers can only redeem subsidized fertilizers at official kiosks that have been determined to serve local farmer groups.

Furthermore, Minister of Agriculture Number 10 of 2022 also stipulates 9 (nine) commodities that will receive fertilizer subsidy allocations, namely rice, corn, soybeans, shallots, garlic, chilies, coffee, smallholder sugarcane and cocoa. In other words, farmers who cultivate other than these commodities are no longer entitled to subsidized fertilizer allocations.

"Pupuk Indonesia is committed to maintaining the availability of subsidized fertilizers in the Sergai Regency area. Fertilizer stock prepared according to regulations and will be distributed to farmers who are entitled according to e-allocation data. Pupuk Indonesia has distributed subsidized fertilizers in accordance with Minister of Agriculture Number 10 of 2022 which stipulates two types of fertilizer, namely urea and NPK. That way, other types of fertilizer will no longer receive subsidy allocations from the government," he said.