Palembang, August 23, 2024 – The Deputy Minister of Agriculture of the Republic of Indonesia, Sudaryono, expressed his support for the revitalization of the fertilizer industry under the management of PT Pupuk Indonesia (Persero), aiming to make production processes more efficient in producing high-quality fertilizers. This was conveyed during his visit to Pupuk Sriwidjaja (Pusri) in Palembang, South Sumatra, on Thursday (August 22, 2024).

"Pupuk Sriwidjaja is a legend. Of course, we encourage the improvement of equipment, so this revitalization can enhance efficiency in production activities and result in high-quality fertilizers at affordable prices. When production is efficient, the cost of production decreases," he stated.

The Deputy Minister added that high-quality fertilizers and sufficient availability from modern and efficient factories are essential to increase agricultural productivity. Moreover, the government has increased the allocation of subsidized fertilizers from the initial 2024 allocation of 4.7 million tons to 9.55 million tons, and has improved the irrigation systems of rain-fed rice fields by providing 64,000 pumps across Indonesia to enable more than one planting season per year.

"We have checked everywhere; the amount of fertilizer this year (2024) is greater than in 2023. This is relatively stable and secure, with many fertilizers available at retailers that have not yet been absorbed. This is encouraging," said the Deputy Minister during his visit to Sumatra.

Meanwhile, the Director of Production at Pupuk Indonesia, Bob Indiarto, positively welcomed the Deputy Minister's support for the revitalization of the fertilizer industry in the country. This revitalization effort aligns with the program to increase national agricultural productivity.

He added that Pupuk Indonesia's commitment to supporting the government in the program to increase national agricultural productivity is reflected in maintaining stock availability in accordance with regulations. As of August 21, 2024, the national stock amounted to 1,220,283 tons, consisting of 683,930 tons of Urea, 522,501 tons of NPK Phonska, and 13,852 tons of NPK Formula Kakao. This allocation is significantly higher than the minimum requirement set by the government, which is 363,190 tons, or approximately 263 percent more.

"The stock is currently available from Level I (Producer Warehouse) to Level III (District/City Level) warehouses. We hope farmers can optimize the absorption of subsidized fertilizers in the remaining four months of this year to support agricultural productivity," Bob stated.

In South Sumatra, Pupuk Indonesia has prepared 20,796 tons of subsidized fertilizers, consisting of 10,395 tons of Urea, 10,393 tons of NPK Phonska, and 8 tons of NPK Formula Kakao. This stock availability is equivalent to 179 percent of the minimum stock requirement set by the government.

To facilitate the distribution of subsidized fertilizers in South Sumatra, Pupuk Indonesia has also prepared several supporting facilities, including nine Level III warehouses, 40 distributors, and 526 official kiosks. Pupuk Indonesia has also deployed 32 field officers to ensure that subsidized fertilizers are distributed accurately.

Regarding the redemption of subsidized fertilizers, he noted that it is now easier. With the implementation of the i-Pubers application at kiosks, farmers across Indonesia only need to bring their ID cards (KTP) to redeem fertilizers.

He also explained that Pupuk Indonesia has increased supervision of the distribution of subsidized fertilizers because there are specific requirements to obtain subsidized fertilizers. Farmers eligible for subsidized fertilizers must meet criteria outlined in the Ministry of Agriculture Regulation (Permentan) No. 1 of 2024, which include being part of a farmer group, being registered in the Agricultural Extension Management Information System (SIMLUHTAN), and cultivating a maximum of two hectares of land.

Additionally, the strategic commodities eligible for fertilizer subsidies are limited to nine commodities: rice, corn, soybeans, chilies, shallots, garlic, coffee, sugarcane, and cocoa. "Our stock exceeds the minimum requirement. Thus, Pupuk Indonesia is ready to meet fertilizer needs in the context of the national agricultural productivity enhancement program," Bob concluded.