Subsidized Fertilizer Only for Farmers Registered in The E-Allocation

  • Posted by User01
  • 9 March2023
  • 18:29WIB

JAKARTA - PT Pupuk Indonesia (Persero) ensures that the distribution of subsidized fertilizers is only given to farmers who meet the criteria or conditions set by the Regulation of the Minister of Agriculture (Permentan) Number 10 of 2022 concerning Procedures for Determining the Allocation and Highest Retail Price (HET) of Subsidized Fertilizers in the Agricultural Sector.

Vice President (VP) of Sales of Region 1 Pupuk Indonesia, Wawan Arjuna said that farmers who do not meet the criteria of the regulation directly do not have an allocation of fertilizer subsidies from the Government.

"Pupuk Indonesia as a State-Owned Fertilizer Holding appointed by the Government in procurement activities and distribution of subsidized fertilizers strongly supports this policy, one of which is distributing or distributing subsidized fertilizers up to line IV or kiosk level to farmers who meet the criteria of Permentan Number 10 of 2022," said Wawan.

Based on the regulation, subsidized fertilizer is aimed only at farmers who grow 9 commodities, namely rice, corn, soybeans, chilies, onions, garlic, coffee, cocoa, and sugarcane. In other words, farmers who work outside of these commodities no longer get subsidized fertilizer allocations.

Still based on Permentan 10 of 2022, the Government also sets criteria for farmers who plant 9 commodities to get subsidized fertilizer allocations, namely they must be members of farmer groups, be registered in SIMLUHTAN (Agricultural Extension Management Information System), work on a maximum of two hectares of land, and use Farmer Cards (for certain areas).

"In 2023, the input data of farmers who are entitled to subsidized fertilizers will also be changed from the previous one based on the e-RDKK now to e-Allocation, which is an electronic device and procedure that functions to collect and determine data on the allocation of subsidized fertilizers in each region. If there are farmers who plant 9 commodities based on the applicable rules but do not meet the criteria and the data is not in the E-Allocation, then these farmers also do not get subsidized fertilizer allocations," explained Wawan.

Pupuk Indonesia is recorded that as of March 3, 2023, it has distributed 42,678 tons of subsidized fertilizer in North Sumatra (North Sumatra), consisting of 23,401 tons of Urea and 19,277 tons of NPK. Meanwhile, in terms of stocks, Pupuk Indonesia prepared as much as 25,844 tons or equivalent to 159 percent of the Government's minimum provisions. This stock consists of 16,948 tons of Urea and 8,896 tons of NPK, equivalent to 175 percent and 136 percent of the Government's minimum requirements, respectively.

Wawan emphasized that all subsidized fertilizer stocks in North Sumatra Province are prepared for all farmers who meet the criteria based on Permentan Number 10 of 2022 and for eligible farmers can only redeem the allocation of subsidized fertilizers at official complete fertilizer kiosks (KPL). This also answers information that says farmers cannot redeem subsidized fertilizer in Setia Janji District, Asahan Regency.

Wawan further explained that KPL is officially required to sell subsidized fertilizers in accordance with Permendag No. 4 of 2023 concerning the Procurement and Distribution of Subsidized Fertilizers for the Agricultural Sector, namely retailers or kiosks of subsidized fertilizers carry out their own subsidized fertilizer distribution activities only to farmers and/or farmer groups in their areas of responsibility, selling subsidized fertilizer to farmers and/or farmer groups based on the allocation of subsidized fertilizers and not exceeding HET, installing nameplates with a size of 0.50 m x 0.75 m as an authorized retailer of distributors officially appointed by the State-Owned Fertilizer Holding, installing a price list not exceeding HET, and redeeming subsidized fertilizers to distributors designated according to the SPJB. 

Furthermore, retailers or kiosks sell subsidized fertilizer to farmers as needed, without coercion and not allowed to be done by bundling or gandengan. Given the limited allocation of subsidized fertilizers and that only farmers who meet the criteria or conditions can redeem subsidized fertilizers, retailers or kiosks are encouraged to be able to provide non-subsidized fertilizers.

"Pupuk Indonesia will provide strict sanctions for distributors if it is found that either distributors, retailers or kiosks are distributing subsidized fertilizer in the area of responsibility outside the applicable regulations," said Wawan.

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