Fulfilling Farmers' Needs, Pupuk Indonesia Maintains Availability of Subsidized Fertilizer Stocks
SOLO - Welcoming the planting season, PT Pupuk Indonesia (Persero) continues to maintain the availability of subsidized fertilizer stocks from the producer level (level I) to the district/city warehouse level (level III). It is recorded that the stock of subsidized fertilizer is 1,453,132 tons as of October 23, 2023, or equivalent to 275 percent of the minimum requirement set by the government.
"The current stock of subsidized fertilizer is already sufficient, approximately nearly three times the government's minimum requirement," said Rahmad Pribadi, the CEO of Pupuk Indonesia, after attending a harvest and rice planting event with the Ministry of Agriculture in Sukoharjo, Central Java, on Tuesday (10/24/2023).
The stock of subsidized fertilizer, totaling 1,453,132 tons, consists of 986,551 tons of urea fertilizer and 466,582 tons of NPK. Rahmad explained that the availability of subsidized fertilizer stock is continually increased due to the delayed planting season caused by the El Nino phenomenon, leading to an extended dry season in Indonesia.
Not only subsidized fertilizer, Rahmad also mentioned that they would maintain the availability of non-subsidized fertilizer throughout their complete partner fertilizer kiosks scattered across Indonesia. This aligns with the Ministry of Agriculture's directives for the planting season to ensure the availability of non-subsidized fertilizer.
The Ministry of Agriculture emphasizes that the availability of fertilizer and seeds is one of the critical factors in national agriculture. The government aims to achieve rice production in early 2024 or during the first harvest season. Therefore, following President Jokowi's directive, the Ministry of Agriculture targets a rice production of 35 million tons in 2024 to meet domestic demand and reduce imports.
Furthermore, Rahmad revealed that the availability of fertilizer in Pupuk Indonesia's 26,000 partner kiosks includes both subsidized and non-subsidized fertilizer. Besides fertilizers, Rahmad will also promote the Prosperous program to enhance agricultural productivity and income. Through this program, farmers' fertilizer needs can be met, even with non-subsidized products.
As of October 23, 2023, the distributed subsidized fertilizer amounted to 5,033,717 tons or approximately 64.1 percent of the annual plan (RKAP) of 7,856,951 tons. Urea fertilizer distribution reached 2,968,333 tons, and NPK reached 2,037,533 tons.
The subsidized fertilizer stock provided by Pupuk Indonesia complies with the minimum requirements outlined in the Minister of Trade Regulation (Permendag) No. 4 of 2023 regarding the Procurement and Distribution of Subsidized Fertilizers for the Agricultural Sector. Farmers eligible to redeem this fertilizer are registered in the e-Allocation system or comply with the Minister of Agriculture Regulation No. 10 of 2022 on the Procedure for Determining the Allocation and Maximum Retail Price of Subsidized Fertilizers for the Agricultural Sector.
Based on Minister of Agriculture Regulation No. 10 of 2022, eligible farmers for subsidized fertilizer allocation must be part of a farmer group, registered in SIMLUHTAN (Agricultural Extension Management Information System), and cultivate a maximum of two hectares of land. This regulation also specifies nine strategic commodities that are eligible for fertilizer subsidies, namely rice, corn, soybeans, chili, shallots, garlic, coffee, sugarcane, and cocoa.
Meanwhile, Deputy Regent of Sukoharjo, Agus Santosa, stated that Sukoharjo Regency is one of the food-producing regions in Central Java, with a rice planting index of 300 or three times a year. Even in the El Nino conditions, Sukoharjo farmers are still enthusiastic about planting rice. Currently, there is a standing crop of 11,711 hectares.
"If we can secure this standing crop, the harvest area in December 2023 will be 50,949 hectares. The rice harvest yield of farmers in Season III of this planting is 8 tons per hectare. The current selling price of paddy from the farmers' harvest is Rp 7,300 per kilogram," said Agus."
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About Pupuk Indonesia
PT Pupuk Indonesia (Persero) is the largest Urea fertilizer producer in Asia and ranks among the top 10 globally, with a total annual factory production capacity of 13.95 million tons of fertilizer. In fulfilling its mission for national food security, PT Pupuk Indonesia (Persero) and its ten subsidiaries are the largest fertilizer producers in Asia, manufacturing a variety of fertilizers including Urea, NPK, ZA, Organic, and SP-36, distributed across the islands of Java, Sumatra, and Kalimantan. The company is supported by various facilities such as ports and related infrastructure, transportation ships, warehouses, fertilizer packaging units, and workshops that streamline the production and distribution of fertilizers. The operational activities of the Pupuk Indonesia Group encompass the fertilizer, petrochemical, and agrochemical industries, as well as steam and electricity production, transportation and distribution, trade, and EPC (Engineering, Procurement, and Construction).
The ten subsidiary companies mentioned are as follows: PT Petrokimia Gresik (PKG), PT Pupuk Kujang Cikampek (PKC), PT Pupuk Kalimantan Timur (PKT), PT Pupuk Iskandar Muda (PIM), PT Pupuk Sriwidjaja Palembang (PSP), PT Rekayasa Industri (Rekind), PT Pupuk Indonesia Niaga (PIN), PT Pupuk Indonesia Logistik (Pilog), PT Pupuk Indonesia Utilitas (PIU), and PT Pupuk Indonesia Pangan (PIP). For more detailed information about Pupuk Indonesia, please visit