JAKARTA – PT Pupuk Indonesia (Persero) is ready to distribute subsidized fertilizer according to the 2023 allocation that has been determined by the government in accordance with Ministerial Decree Number 734 of 2022 concerning Determination of the Allocation and Highest Retail Price of Subsidized Fertilizers in the Agricultural Sector in 2023. This distribution process is supported by 1,013 distributors.

Pupuk Indonesia Marketing Director, Gusrizal said that as many as 1,013 of these distributors had signed a Sales Purchase Agreement (SPJB) for subsidized fertilizer for the 2023 fiscal year in Bali, Wednesday and Thursday December 14-15 2022.

"For the 2023 Fiscal Year, Pupuk Indonesia targets optimal distribution of close to 100% of the allocation issued by the Government. For this reason, we ask for your commitment as distribution partners in the regions, and periodically Pupuk Indonesia will also evaluate the distribution performance of each distributor which will certainly be our consideration for the continuation of future cooperation," said Gusrizal.

Based on Ministerial Decree Number 734 of 2022, the total allocation for subsidized fertilizer next year is set at 9,013,706 tons consisting of 5,570,330 tons of urea fertilizer, 3,232,373 tons of nitrogen, phosphor and potassium (NPK), and 211,003 tons of special formula NPK. . 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.

Gusrizal appealed to all distributors to apply the digitization system that has been developed and implemented by Pupuk Indonesia, namely the REKAN (Partner) Application. This system can support the implementation of the distribution of subsidized fertilizers to run optimally and according to the 6 (six) principles of Right, namely right quality, right amount, right type, right price, right time and right place. "For this reason, we hope that the Leaders of Subsidized Fertilizer Distributor Candidates for 2023 will be able to implement 100 percent of Partner Applications both at Distributors and at Kiosks in conducting periodic stock reporting," he added.

On the same occasion, Pupuk Indonesia's SEVP of Marketing Operations, Gatoet Gembiro Noegroho said that all distributors who had signed the SPJB would support the distribution process in the western and eastern regions of Indonesia. For information, as many as 649 distributors have signed the SPJB for distribution in the western region and as many as 364 distributors will distribute in eastern Indonesia.

Gatoet appealed to distributors of subsidized fertilizers to continue to support Pupuk Indonesia's work program in distributing and meeting farmers' fertilizer needs. "We hope that you (distributors) will support Pupuk Indonesia's work program in supporting the supply of fertilizer at the farm level," said Gatoet.

PT Pupuk Indonesia (Persero) is ready to distribute subsidized fertilizer according to the allocation in the Rencana Definitif Kebutuhan Kelompok (Group Needs Definitive Plan) or RDKK electronically regulated by the Regulation of the Minister of Agriculture (Permentan) Number 10 of 2022 concerning Procedures for Determining the Allocation and Highest Retail Price of Subsidized Fertilizers in the Agricultural Sector.

In accordance with applicable regulations, the distribution of subsidized fertilizers is carried out in a closed manner according to the specified allocation. Fertilizer is only distributed to farmers who are registered in farmer groups and the Definitive Plan for Group Needs electronically.

Pupuk Indonesia also complies with the rules for distributing subsidized fertilizers contained in the Regulation of the Minister of Trade (Permendag) Number 15 of 2013 concerning Procurement and Distribution of Subsidized Fertilizers for the Agricultural Sector Nationally from Line I to Line IV.

For the total stock of subsidized fertilizer nationally for the 2022 fiscal year, it was recorded as 669,109 tons as of December 14, 2022. This figure is equivalent to 142 percent of the stock limit set by the Ministry of Trade (Ministry of Trade). The total stock consists of 410,642 tons of Urea and 258,467 tons of NPK.

Meanwhile, from the distribution side, Pupuk Indonesia has distributed 6,879,928 tons of subsidized fertilizer by the end of November 2022, or has reached 88.5 percent of the total allocation set by the government. If seen in detail, the Company has distributed 3,605,372 tons of Urea fertilizer, 2,656,760 tons of NPK, 163,467 tons of SP-36, 220,439 tons of ZA, and 233,889 tons of Organic.

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 farmer groups, 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).

The signing of the SPJB for subsidized fertilizer was carried out by Pupuk Indonesia's subsidiaries such as PT Petrokimia Gresik, PT Pupuk Kujang Cikampek, PT Pupuk Kalimantan Timur, PT Pupuk Iskandar Muda and PT Pupuk Sriwidjaja Palembang which was witnessed directly by the Marketing Director of Pupuk Indonesia, Gusrizal and SEVP Fertilizer Marketing Operations Indonesia, Gatoet Gembiro Noegroho.