Transforming Subsidized Fertilizer Governance to Make Fertilizer Redemption Easier for Farmers

The transformation of subsidized fertilizer governance is an important step toward strengthening Indonesia’s national fertilizer industry while improving the quality of services provided to farmers. As part of this process, Pupuk Indonesia has played an active role in driving improvements in governance and strengthening the national fertilizer industry. These efforts were reinforced through the issuance of Presidential Regulation (Perpres) No. 6 of 2025 on the Governance of Subsidized Fertilizer and further refined through Presidential Regulation No. 113 of 2025.

Through these two regulations, the government and Pupuk Indonesia have strengthened the systems for the procurement, production, distribution, and supervision of subsidized fertilizer. These governance reforms not only simplify the distribution process but also promote the use of digital systems to improve data accuracy, transaction transparency, and service convenience for farmers.

In terms of subsidized fertilizer distribution performance, this transformation plays an important role in ensuring that fertilizer is available where it is needed and can be redeemed by eligible recipients.

What Has Changed in Subsidized Fertilizer Governance?

Presidential Regulation No. 6 of 2025 provides a new framework for subsidized fertilizer governance. The regulation came into effect on January 30, 2025, and streamlined 145 regulations related to the distribution of subsidized fertilizer. Its primary objective is to ensure that the procurement and distribution of subsidized fertilizer meet the principles of the right type, quantity, price, location, timing, quality, and recipient.

Subsequently, Presidential Regulation No. 113 of 2025 was issued as an amendment to Presidential Regulation No. 6 of 2025. Effective October 24, 2025, the regulation is intended, among other objectives, to provide greater certainty in the procurement of raw materials and introduce changes to the subsidized fertilizer payment mechanism. These measures have contributed to greater efficiency in the fertilizer industry, enabling the government to reduce the Highest Retail Price (HET) of subsidized fertilizer at the farmer level by 20%—the first reduction of its kind in Indonesia’s history.

With this regulatory framework in place, subsidized fertilizer governance has become more integrated, from procurement through to distribution to eligible recipients.

How Does the Transformation Make It Easier for Farmers to Redeem Subsidized Fertilizer?

One of the changes farmers can experience at the field level is the use of digital systems for the redemption process at distribution points, now referred to as Fertilizer Recipients at Delivery Points (Penerima Pupuk pada Titik Serah/PPTS).

Pupuk Indonesia has also implemented iPubers, a digital platform used at PPTS locations to record and monitor subsidized fertilizer redemptions.

The iPubers application helps strengthen distribution accountability, improve transaction transparency, simplify the verification and redemption process, and monitor fertilizer stock availability in the field.

Digitalization means that the distribution process is no longer entirely dependent on manual record-keeping. Transaction data can be recorded in a more structured manner, enabling distribution activities to be monitored more effectively.

For farmers, the main benefit is a more convenient redemption process, provided that they are registered as eligible recipients and meet the applicable requirements.

Who Is Eligible to Redeem Subsidized Fertilizer?

Subsidized fertilizer is not freely available to everyone. Redemption is limited to eligible recipients who have been designated based on the data and fertilizer allocations recorded in the Electronic Definitive Group Needs Plan (e-RDKK).

Therefore, making the redemption process easier does not mean eliminating the verification process. Instead, digitalization helps ensure that fertilizer is distributed to the appropriate recipients while strengthening distribution oversight.

This approach is aligned with the objectives of subsidized fertilizer governance, which emphasize ensuring that fertilizer reaches the right recipients. Presidential Regulation No. 6 of 2025 specifically includes the principle of reaching the right recipients as one of the key objectives of subsidized fertilizer governance.

How Does Digitalization Improve Subsidized Fertilizer Distribution Performance?

Digitalization provides benefits across several stages of the distribution process, including:

1. More structured transaction records
   Digital systems enable redemption transactions to be recorded in a more structured manner, ensuring that information on fertilizer redemptions is properly documented.

2. Greater distribution transparency
   Digitalization helps improve distribution transparency. Transaction information can be incorporated into monitoring processes, making potential discrepancies in distribution easier to identify.

3. Improved stock monitoring
   Digitalization helps Pupuk Indonesia and the government monitor fertilizer stock availability at the field level. With more integrated information, distribution management can take into account stock conditions and demand across different regions. Pupuk Indonesia identifies this as one of the key benefits of implementing iPubers.

Therefore, the performance of subsidized fertilizer distribution is not measured solely by the volume of fertilizer distributed, but also by how effectively the system ensures that fertilizer is available, properly recorded, and received by eligible farmers.

What Are the Roles of Presidential Regulations No. 6/2025 and No. 113/2025 in Fertilizer Governance?

The two regulations serve as important foundations for transforming subsidized fertilizer governance. Presidential Regulation No. 6 of 2025 establishes the governance framework for subsidized fertilizer, with a focus on ensuring proper procurement and distribution. Meanwhile, Presidential Regulation No. 113 of 2025 refines several provisions to strengthen certainty in raw material procurement and improve efficiency in the production and distribution of subsidized fertilizer.

The implementation of these regulations is further supported by Minister of Agriculture Regulation No. 15 of 2025, which provides more detailed provisions concerning the determination of subsidized fertilizer, procurement and distribution, billing and payment, guidance and supervision, evaluation, and sanctions.

This means that the transformation of subsidized fertilizer distribution is not based on a single policy. Instead, it is supported by a series of regulations governing the process from upstream to downstream.

What Are the Impacts of Presidential Regulations No. 6/2025 and No. 113/2025 on Farmers?

For farmers, the transformation of fertilizer governance provides key benefits, including a more convenient redemption process and a distribution system that can be monitored more effectively.

Farmers are still required to ensure that they are registered as eligible recipients of subsidized fertilizer and comply with the applicable redemption requirements. Once these requirements are met, transactions can be completed through the mechanisms provided at designated distribution points.

A more digitalized system helps strengthen distribution certainty. Pupuk Indonesia can utilize transaction and stock data to support distribution management, while the government gains stronger tools for monitoring and oversight.

Transforming Distribution to Support Farmers

The transformation of subsidized fertilizer governance is an important step toward improving the quality of services provided to farmers. Presidential Regulation No. 6 of 2025 and Presidential Regulation No. 113 of 2025 provide the foundation for streamlining and strengthening governance, while digitalization through iPubers supports more effective record-keeping, monitoring, and transparency throughout the distribution process.

For Pupuk Indonesia, this transformation is part of its ongoing efforts to improve subsidized fertilizer distribution performance, ensuring that fertilizer is available efficiently and can be redeemed by eligible recipients.

Ultimately, the success of subsidized fertilizer distribution is determined not only by the availability of fertilizer stocks. Effective distribution must connect available fertilizer with the right farmers, at the right time and in the right place. Stronger regulations, digitalization, and distribution monitoring provide the foundation for achieving this goal while supporting agricultural productivity and strengthening Indonesia’s national food security.