Pupuk Indonesia Prepares 16,770 Tons of Subsidized Fertilizer for Banten
BANTEN - PT Pupuk Indonesia (Persero) has prepared a stock of 16,770 tons of subsidized fertilizer for Banten Province as of January 25, 2022. This figure is sufficient to meet the needs of farmers in the coming weeks. The stocks consist of Urea and NPK which amount to 11,278 tons and 5,492 tons respectively or in total equivalent to 284 percent of the minimum stock provisions.
This was stated by SVP PSO West Region Pupuk Indonesia Agus Susanto in a Focus Group Discussion (FGD) on Distribution of Subsidized Fertilizers for 2023 in Banten Province, Monday (30/1/2023). This event was organized by PT Pupuk Indonesia (Persero) and involved the Department of Agriculture, the Attorney General's Office, the Police, distributors and kiosks.
"The stock of urea fertilizer which reached 11,278 tons is equivalent to 300 percent of the minimum stock requirements set by the government, while the stock of NPK fertilizer which amounted to 5,492 tons is equivalent to 254 percent of the provisions. Thus, the stock of urea and NPK fertilizer is sufficient to meet the needs of farmers for the next few weeks," said Agus.
The stock provisions prepared by Pupuk Indonesia are also in accordance with the Minister of Trade Regulation (Permendag) Number 04 of 2023 concerning Procurement and Distribution of Subsidized Fertilizers for the Agricultural Sector.
"We distribute subsidized fertilizers in Banten Province in accordance with applicable regulations, and maintain stock availability based on subsidized fertilizer stock provisions. We distribute it in accordance with the Decree (SK) / E-Allocation of each region, and we ensure the availability of stock every month to support the distribution of subsidized fertilizers," concluded Agus.
Pupuk Indonesia has also distributed 8,645 tons of subsidized fertilizer as of January 25, 2023. This figure consists of 5,781 tons of urea and 2,864 tons of 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.
Agus ensures that all subsidized fertilizers distributed by Pupuk Indonesia are intended for farmers who meet the requirements in Minister of Agriculture Regulation Number 734 of 2022. Based on this, farmers who are entitled to receive it must be members of farmer groups, registered in SIMLUHTAN (Agricultural Extension Management Information System), working on 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 official kiosks which are also known as Complete Pupuk Kiosks (KPL) and have been determined to serve local farmer groups.
Agus said that the FGD on the distribution of subsidized fertilizer could become a forum for socializing the subsidized fertilizer policy that had been set by the Government. According to him, socialization needs to be carried out in order to make the subsidized fertilizer policy right on target.
"At the beginning of the year there was an opportunity to meet for an FGD to equalize perceptions. This FGD is also intended to strengthen friendship ties as well as a forum for explaining subsidized fertilizer policies as stipulated in the Minister of Agriculture and Trade Regulations," said Agus Susanto.
On the same occasion, the Banten Provincial Agriculture Service ensured that the distribution of subsidized fertilizers was optimal. In fact, he assessed that the need for fertilizer in Banten Province has been fulfilled because it can be seen from the realization of the distribution of subsidized fertilizers in 2022.
He explained that the realization of distribution of subsidized fertilizer for the type of urea was recorded at 57,625 tons or the equivalent of 93.18 percent of the allocation of 61,840 tons in 2022. Meanwhile for NPK, it was recorded at 26,697 tons or the equivalent of 95.46 percent of the allocation of 27,967 tons. The total allocation for the two types of subsidized fertilizer is 89,807 tons for 2022.
"I'm trying to look at the data on the realization of the distribution of subsidized fertilizers in 2022, if there is a language that there is a shortage of fertilizers in Banten Province, where the shortage is because the allocation is still left for urea and NPK. Because in terms of allocation there is not a single component that reaches 100 percent (realization of distribution)," said the Head of the Agriculture Service.
Agus assessed that the realization of subsidized fertilizer distribution also indicated that the need for subsidized fertilizer for Banten Province had been met. In 2023, the government allocates 168,805 tons of subsidized fertilizer, with details of 111,445 tons of urea and 56,284 NPK, and 1,076 tons of special NPK.
"The government issued a subsidized fertilizer policy that still exists for Banten and Indonesian farmers and we are sure that subsidized fertilizer in Banten is still able to increase strategic food production. Therefore, the hope is that the state will not invest through subsidy budgets but we will not be able to increase production. Hopefully this year's performance can be the same or better than last year," he said.
On the same occasion, Hary Yohanes, Head of Economics and Intelligence at the High Court for Banten Province, said that the role of the Fertilizer and Pesticide Supervisory Commission (KP3), which involves elements of law enforcement, is very important in the success of the subsidized fertilizer program set by the Government.
He revealed that the High Court of Banten Province is ready to support the targeted distribution of subsidized fertilizers. "The Prosecutor's Office is involved in KP3 because the Attorney's task is to synchronize law enforcement, where the Prosecutor's function is in accordance with the mandate that is a Government Institution that exercises state power in the field of prosecution and other authorities based on law. However, from us the point is how distribution is right on target, quantity, there are 6 right (right type, right amount/dose, right price, right time, right place, and right quality), and indeed we have to collaborate with the agriculture service cities, provinces, Pupuk Indonesia, distributors, agents so that subsidized fertilizers reach the people," said Hary.
Minister of Agriculture Number 734 of 2022 concerning Determination of the Allocation and Highest Retail Price (HET) of Subsidized Fertilizers in the Agricultural Sector for the 2023 Fiscal Year focuses on subsidies for urea and NPK fertilizer types. Then, only nine commodities are entitled to receive fertilizer subsidies, namely rice, corn, soybeans, chilies, shallots, garlic, sugar cane, cocoa, and coffee.