JAKARTA - PT Pupuk Indonesia (Persero) noted that 2.06 million tons of subsidized fertilizer had been distributed as of April 10, 2023. This amount was equivalent to 69.4 percent of the allocation until April 2023 according to the Official Decree of 2.97 million tons.

The total allocation for subsidized fertilizer set by the Government in 2023 is 7.85 million tonnes. In detail, 4.64 million tons of Urea fertilizer and 3.21 million tons of NPK. Meanwhile, Pupuk Indonesia's production plan for 2023 is 12.3 million tons, both subsidized and non-subsidized fertilizers.

The Corporate Secretary of Pupuk Indonesia, Wijaya Laksana, said that the subsidized fertilizer distributed by the Company was in accordance with the allocation set by the Government. In this case, subsidized fertilizers are Urea and NPK.

"As of April 10, 2023, 2.06 million tons of subsidized fertilizers have been distributed, consisting of 1.20 million tons of urea and 843,740 tons of NPK," said Wijaya as quoted on Wednesday (12/4/2023). 2023).

Pupuk Indonesia distributes subsidized fertilizers to farmers in accordance with Minister of Agriculture Regulation (Permentan) Number 10 of 2022 concerning Procedures for Determining the Allocation and Highest Retail Price (HET) of Subsidized Fertilizers in the Agricultural Sector. In this rule, there are criteria for farmers who are entitled to subsidized fertilizer allocations such as being required to join a farmer group, be registered with the SIMLUHTAN (Agricultural Extension Management Information System), work on a maximum of two hectares of land.

Furthermore, subsidized fertilizers are currently focused on urea and NPK and there are 9 types of strategic commodities, namely rice, corn, soybeans, chilies, shallots, garlic, coffee, sugarcane, and cocoa, from those previously intended for around 72 commodities. That way, farmers who do not meet the criteria in Permentan 10 of 2022 are not entitled to receive subsidized fertilizer allocations.

Meanwhile, in terms of stock, Pupuk Indonesia recorded a total of 663,034 tons as of April 11, 2022. This amount of stock is available at Warehouse Line III or district level. When compared with the minimum provision stock set by the Government, the amount available reaches 264 percent or three times the provision.

Wijaya revealed that the stock of subsidized fertilizer available at the Line III Warehouse consisted of 381,488 tons of Urea and 281,546 tons of NPK. These stock figures are equivalent to 255 percent and 277 percent respectively of the minimum stock provisions set by the Government.

Wijaya further revealed that farmers who receive subsidized fertilizer allocations can only redeem it at complete fertilizer kiosks (KPL) or Pupuk Indonesia's official partners. Meanwhile, official KPL are required to sell subsidized fertilizers in accordance with Permendag No. 4 of 2023 concerning Procurement and Distribution of Subsidized Fertilizers for the Agricultural Sector, namely subsidized fertilizer retailers or kiosks carry out subsidized fertilizer distribution activities themselves only to farmers and/or farmer groups in areas of responsibility the answer is selling subsidized fertilizers to farmers and/or farmer groups based on the allocation of subsidized fertilizers and not exceeding the HET, putting up a nameplate with a size of 0.50 m x 0.75 m as an official retailer from a distributor appointed officially by Holding BUMN Pupuk, putting up a price list does not exceed the HET, as well as redemption of subsidized fertilizers to distributors appointed according to the SPJB.

Furthermore, retailers or kiosks sell subsidized fertilizers to farmers as needed, without coercion and are not justified in bundling or partnering. Given the limited allocation of subsidized fertilizers and only farmers who meet the criteria or requirements can buy subsidized fertilizers, retailers or kiosks are encouraged to provide non-subsidized fertilizers.

Pupuk Indonesia also has customer service that can be accessed by all farmers with a toll-free contact at 0800 100 8001 or WA 0811 9918 001. Through customer service, Pupuk Indonesia will accommodate complaints regarding subsidized fertilizers in terms of availability, price, and quality.

"Pupuk Indonesia will impose strict sanctions on distributors if it is found that distributors, retailers or kiosks are distributing subsidized fertilizers in areas of responsibility outside the applicable provisions," said Wijaya.