Batam, December 14, 2023 – PT Pupuk Indonesia (Persero), as a state-owned enterprise mandated to produce and distribute subsidized fertilizers, is committed to delivering fertilizers accurately to Indonesian farmers. Welcoming the year 2024, Pupuk Indonesia is prepared to distribute the subsidized fertilizer allocation for 2024 in accordance with government policies, focusing on timely delivery to farmers registered in e-Alokasi. This commitment was reflected in the signing of the Subsidized Fertilizer Sales and Purchase Agreement (SPJB) for the 2024 fiscal year in Batam, Riau Islands, on Tuesday and Wednesday, December 12-13, 2023. Tri Wahyudi Saleh, Director of Marketing at Pupuk Indonesia, stated that 1,077 distributors are ready to support the distribution of subsidized fertilizers in 2024. Distributors are expected to maximize distribution by maintaining administrative order and compliance with regulations.

"With only 2 weeks left until the end of 2023, we hope that distributors can optimize the distribution of subsidized fertilizers. This distribution is aimed at maintaining administrative order and compliance with applicable rules, especially ensuring that the distribution runs smoothly and reaches the intended targets," he said.

Until November 30, 2023, Pupuk Indonesia has successfully distributed 5.71 million tons, or approximately 94 percent of the total allocation according to the Government budget, which is 6.05 million tons. Given this success, Pupuk Indonesia urges all distributors and retail kiosk networks to distribute subsidized fertilizers according to the allocated quantities and the government-set Maximum Retail Price (HET). In the distribution process, Pupuk Indonesia also requests distributors and retail kiosk networks to implement the digitalization system developed and implemented by Pupuk Indonesia, including the Rekan application that has been digitally integrated through the Distribution Planning & Control System (DPCS), enabling real-time monitoring and facilitating supervision.

"We hope that distributors can support the government's program, especially the acceleration of planting, by preparing stocks and distributing fertilizers according to the rules. Distributors who do not comply may be stopped. We will closely monitor the distribution of subsidized fertilizer according to the policy of the Minister of Agriculture Regulation (Permentan) No. 10 of 2022. The goal is, of course, to address issues of fertilizer scarcity and ensure that fertilizers are received accurately," Tri added.

To support the distribution process, Pupuk Indonesia is backed by distribution facilities such as 15 packaging and distribution centers, 13 ships with 222 sea transportation routes, 8,131 land transportation fleet, 581 warehouses with a fertilizer production capacity of about 14.6 million tons, and has 1,077 distributors, as well as over 25 thousand fertilizer kiosks throughout the country. The determination of these 1,077 distributors is the result of evaluation, administrative verification, and physical checks in the field according to the Minister of Trade Regulation (Permendag) No. 4 of 2023, with additional requirements from Pupuk Indonesia to distributors such as active involvement in trade activities, capability in the procurement and distribution of subsidized fertilizers, and no legal issues. Distributors meeting the criteria have registered through the DIMAS Pupuk Indonesia application. In distribution, the focus is on two types of fertilizers, Urea and NPK, for nine strategic agricultural commodities. Farmers eligible for subsidized fertilizers must be part of a farmer group, registered in SIMLUHTAN, cultivate a maximum of two hectares of land, and use the Farmer Card.

In an effort to maintain integrity, distributors sign Integrity Pacts and Statements of Payment Commitment. Distributors are also required to ensure that their affiliated kiosks understand the distribution system and adhere to rules, including the HET. During the SPJB 2024 event, all distributors recited the integrity pact oath as a commitment to implementing subsidized fertilizer distribution rules. State institutions such as the Ombudsman of the Republic of Indonesia, the Corruption Prevention Satgassus of the Indonesian National Police, and the Attorney General's Office of the Republic of Indonesia witnessed and provided guidance. Distributors are expected to uphold their commitments according to the applicable rules, with periodic evaluations from Pupuk Indonesia.

"We hope that distributors can fully commit to continuing the distribution of subsidized fertilizers according to the applicable rules. In the future, in the implementation process, Pupuk Indonesia will periodically evaluate the performance of each distributor, which will certainly be a consideration for the company to continue cooperation in the future," concluded Tri.