PT Pupuk Indonesia (Persero) has officially terminated its partnership for distributing subsidized fertilizer with Kios Berkah Abadi, located in Senduro District, Lumajang Regency, East Java. Based on a field inspection conducted by Pupuk Indonesia in coordination with the Lumajang Police Department, the kiosk owner admitted to selling subsidized NPK fertilizer at IDR 150,000 per sack—exceeding the government-mandated Retail Price Ceiling (HET) of IDR 115,000 per sack.

This was conveyed by Saroyo Utomo, Senior Manager (SM) of Region 3A at Pupuk Indonesia, following a directive from the Minister of Agriculture of the Republic of Indonesia, Andi Amran Sulaiman, during his visit to farmers in Lumajang on Tuesday, June 10, 2025.

"In accordance with the rules and provisions in the sales agreement between distributors and kiosks, due to the violation of the price ceiling regulation, Kios Berkah Abadi is officially closed or its contract is terminated as of today, June 10, 2025," he stated.

He further explained that, effective immediately, Pupuk Indonesia has ceased all operations of Kios Berkah Abadi. The system access to the subsidized fertilizer redemption app, i-Pubers, typically used by kiosks, has been deactivated to prevent further transactions.

Pupuk Indonesia assured that the closure of the kiosk will not disrupt the fertilizer distribution process to farmers. The 8 tons of subsidized NPK fertilizer stock at Kios Berkah Abadi will be physically transferred to UD Madani, the designated replacement kiosk appointed by Pupuk Indonesia.

For reference, the 2025 subsidized fertilizer price ceilings set by the Ministry of Agriculture are as follows: Urea at IDR 2,250/kg, NPK Phonska at IDR 2,300/kg, NPK for Cocoa at IDR 3,300/kg, and Organic Fertilizer at IDR 800/kg.

Saroyo reminded all partner kiosks that violations of subsidized fertilizer distribution regulations are subject to strict penalties. If proven, the sanctions can range from warnings to contract termination.

As a preventive measure, Pupuk Indonesia continues to intensify education for farmers, kiosks, and relevant stakeholders on the importance of adhering to the price ceiling. This includes clearly documenting in receipts any agreed-upon price increases between kiosks and farmers—such as delivery fees, post-harvest payment agreements (yarnen), or other mutual agreements that may result in fertilizer prices exceeding the HET.

Furthermore, Pupuk Indonesia requires all partner kiosks to display banners providing contact information for farmers to report any kiosk selling subsidized fertilizer above the HET. The company also encourages the public to report any suspected violations in fertilizer distribution.

Reports can be submitted through Pupuk Indonesia’s field teams or by contacting the company’s official customer service. Farmers across the country can reach customer service toll-free at 0800 100 8001 or via WhatsApp at 0811 9918 001.

“The public can also take part in monitoring the distribution of subsidized fertilizer. If you encounter any suspicious activity, do not hesitate to report it to law enforcement authorities,” he concluded.