Collaboration Between Pupuk Indonesia and KPK Strengthens Subsidized Fertilizer Governance

  • Posted by User01
  • 14 March2025
  • 17:23WIB
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Jakarta, March 10, 2025 – As part of its commitment to improving the governance of subsidized fertilizers, PT Pupuk Indonesia (Persero) is enhancing its collaboration with the Corruption Eradication Commission (KPK) of the Republic of Indonesia to support national food self-sufficiency. To initiate this collaboration, Pupuk Indonesia held an audience with KPK leaders at the Merah Putih Building, Jakarta, on Monday (10/3/2025).

"KPK leaders welcomed the Board of Directors of Pupuk Indonesia, along with its subsidiaries. Several issues were discussed, particularly those related to preventive measures," said Secretary-General of KPK RI, Cahya Hardianto Harefa, after the meeting.

President Director of Pupuk Indonesia, Rahmad Pribadi, stated that in carrying out the mandate to distribute subsidized fertilizers across Indonesia, Pupuk Indonesia faces various risks and legal challenges. Through this collaboration, the governance of subsidized fertilizer distribution can be further strengthened to prevent such risks.

"We reported what we have done and what we plan to do, while also discussing other coordination-related matters. The main context is how KPK and Pupuk Indonesia Group can collaborate to improve governance. The stronger and better the governance, the more effectively we can prevent corruption and other legal violations," said Rahmad.

He added that this collaboration represents Pupuk Indonesia’s effort to optimize its role in distributing subsidized fertilizers across Indonesia in accordance with Good Corporate Governance (GCG) principles and applicable regulations. He noted that improving fertilizer governance began with recommendations from KPK.

In 2018, KPK issued recommendations for governance improvements, which led to the issuance of Presidential Regulation (Perpres) No. 6 of 2025 on Subsidized Fertilizer Governance. This regulation outlines fertilizer distribution management based on the six accuracy principles: right quantity, right price, right place, right time, right quality, and right recipient.

As part of this collaboration, Pupuk Indonesia and its subsidiaries will provide KPK with access to relevant data and information. "Essentially, we have agreed—KPK and Pupuk Indonesia—to establish a space for collaboration," emphasized Rahmad.

Lastly, he explained that this collaboration is crucial, as early preventive actions will ensure that subsidized fertilizers are distributed according to allocation, supporting increased agricultural productivity and accelerating national food self-sufficiency. This aligns with President Prabowo Subianto’s grand vision in the Asta Cita program, which aims to promote national independence through food self-sufficiency.

"This collaboration is essential because fertilizer is a key pillar of national food security. If fertilizer governance improves, farmers will have easier access to fertilizers, distribution will be efficient, and Indonesia will achieve national food security sooner—a benefit for the entire nation," concluded Rahmad.

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