Early 2023, Pupuk Indonesia Prepares Subsidized Fertilizer Stock of 194% of the Provisions
JAKARTA – PT Pupuk Indonesia (Persero) started the 2023 fiscal year by preparing subsidized fertilizer stocks of 194 percent or the equivalent of 1,454,828 tons of the minimum stock requirements set by the government in Regulation of the Minister of Trade (Permendag) Number 15 of 2013 concerning Procurement and Distribution of Subsidized Fertilizers For the Agricultural Sector.
"This subsidized fertilizer stock was recorded as of January 13 2023, at the beginning of this year we prepared subsidized fertilizer stocks up to line III with a total of 1,454,828 tons. This subsidized fertilizer stock figure is also able to meet the needs for the next few weeks in accordance with applicable regulations," said Pupuk Indonesia's SVP Corporate Communications, Wijaya Laksana in his statement.
The subsidized fertilizer stock consists of two types, namely urea and NPK 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. The details are as follows, Urea amounted to 992,791 tons and NPK amounted to 462,937 tons or respectively recorded 188 percent and 203 percent of the minimum stock that has been determined by the Government.
In 2023, the Government through Decree of the Minister of Agriculture (Kepmentan) Number 734 of 2022 stipulates subsidized fertilizer HET with a value of IDR 2,250 per kg for urea fertilizer, IDR 2,300 per kg for NPK fertilizer, and IDR 3,300 per kg for NPK fertilizer with cocoa special formula. "With clear rules, we will not hesitate to take firm action against distributors and kiosks that are proven to be selling fertilizer at prices above the HET. We also urge the public, especially farmers, to immediately report if they see the practice of buying and selling fertilizer that is not in accordance with the regulations that apply to Pupuk Indonesia through the Pupuk Indonesia customer service number at number 0800-100-8001 or WA at number 0811-9918-001," said Wijaya. .
Wijaya continued, Subsidized fertilizer is aimed at all farmers who are able to meet the requirements set by the Government in Permentan Number 10 of 2022. Based on the regulation, farmers who are entitled to receive it are required to be members of farmer groups, registered in SIMLUHTAN (Agricultural Extension Management Information System), cultivating a maximum of two hectares of land, and using a Farmer's Card (for certain areas). He further explained that farmers can redeem subsidized fertilizers at official kiosks that have been determined to serve local farmer groups.
It should also be noted that currently subsidized fertilizers are focused on two types of fertilizers, namely Urea and NPK. These two types of subsidized fertilizer are intended for nine strategic agricultural commodities that have an impact on inflation. The nine commodities are rice, corn, soybeans, chilies, shallots, garlic, sugar cane, cocoa and coffee.
Meanwhile, in terms of the realization of distribution or distribution of subsidized fertilizers, Wijaya revealed that Pupuk Indonesia had distributed 150,635 tons of subsidized fertilizer nationally as of January 13, 2022. The details were for urea of 100,312 tons and NPK of 50,324 tons.
"In the process of redeeming subsidized fertilizers, Pupuk Indonesia also assists the government in making it easy for farmers to redeem subsidized fertilizers. One of the efforts is by developing a system that we named the Partner Application. This application is intended for kiosks with the aim of accelerating kiosks making sales, recording both retail and commercial, this application is even integrated with the Ministry of Agriculture's digital system," concluded Wijaya.
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