Attending the IV Commission RDP, Pupuk Indonesia Outlines Subsidized Fertilizer Distribution Strategy
Jakarta, June 19, 2024 – PT Pupuk Indonesia (Persero) is ready to distribute over 9 million tons of fertilizer to meet the needs of Indonesian farmers and fulfill the government's mandate to maintain national food security. This was conveyed by Pupuk Indonesia CEO Rahmad Pribadi after attending a Hearing Meeting (RDP) with the IV Commission of the House of Representatives (DPR) of the Republic of Indonesia, led by the Chairman of the IV Commission of the DPR RI, Sudin, in Jakarta, Wednesday (19/6/2024).
The government, through Permentan Number 01 of 2024 and Kepmentan Number 249 of 2024, has increased the allocation of fertilizer subsidies to 9.55 million tons, doubling the previous 4.7 million tons. This subsidy allocation is intended for four types: Urea, NPK, Special Formula NPK, and the newly included Organic fertilizer.
To the IV Commission of the DPR RI, Rahmad Pribadi explained, “One of the main factors supporting national agricultural productivity is the adequate distribution of fertilizer to all farmers in Indonesia. As of June 15, 2024, the realization of subsidized fertilizer distribution reached 2.8 million tons, out of a total allocation of 9.55 million tons, or 29 percent of the total allocation. To meet the fertilizer needs of national farmers during the planting season, we have prepared an acceleration program for the absorption of subsidized fertilizer to ensure the smooth distribution process.”
As many as 58% of farmers registered in the electronic Definitive Group Needs Plan (e-RDKK) system until May 2024 have not redeemed (subsidized fertilizer). To increase absorption, Pupuk Indonesia initiated socialization and encouraged farmers to redeem subsidized fertilizer by promoting the PI Menyapa and Tebus Bersama programs.
PI Menyapa is a communication and coordination forum between Pupuk Indonesia and field stakeholders aimed at minimizing corrections to subsidized fertilizer bills. PI will also campaign for the Tebus Bersama program, inviting farmers to redeem subsidized fertilizer together at fertilizer kiosks, focusing on areas with low fertilizer absorption.
As of June 15, 2024, Pupuk Indonesia has realized the distribution of 2.80 million tons of subsidized fertilizer, consisting of 1,586,663 tons of Urea fertilizer, 1,203,754 tons of NPK fertilizer, and 9,334 tons of Special Formula NPK fertilizer.
“Not only ensuring that subsidized fertilizers are available at kiosks, but also making it easier for farmers to access subsidized fertilizers is a priority for Pupuk Indonesia. We hope for support from all stakeholders for the success of farmers in the second planting season,” added Rahmad.
To facilitate farmers in redeeming subsidized fertilizer, Pupuk Indonesia, together with the Ministry of Agriculture, has implemented a more effective mechanism for redeeming subsidized fertilizer for national farmers, through the use of the i-Pubers (Integrated Subsidized Fertilizer) application, which has been implemented 100 percent nationwide. Through the i-Pubers application, farmers can redeem subsidized fertilizer at all Pupuk Indonesia partner kiosks using only their ID cards.
This redemption mechanism involves scanning the ID card, signing the transaction receipt, and taking a photo as proof. Before redeeming fertilizer, farmers must ensure that they meet the requirements as recipients of subsidized fertilizer based on the Permentan and are registered in the e-RDKK list of the Ministry of Agriculture.
“With the use of the i-Pubers application at more than 27,000 fertilizer kiosks throughout Indonesia, we ensure that farmers can redeem subsidized fertilizer according to the allocated amount. This system not only facilitates the redemption process but also enhances the effectiveness of monitoring the distribution of subsidized fertilizers on a broad scale,” concluded Rahmad.