Farmer group to sue fertilizer firms

JAKARTA: The Indonesian Farmers Association (HKTI) plans to sue four state-owned fertilizer companies for allegedly failing to address their chronic supply shortages that in turn have been blamed for farmers' low productivity.

"We think we need legal intervention in dealing with the supply shortages, so we will file a lawsuit against Pupuk Sriwijaya, Pupuk Kaltim, Pupuk Kujang and Petrokimia Gresik as parties mandated by the government to produce and distribute fertilizers," HKTI vice chairman Agusdin Pulungan said on Wednesday.

He said the shortages of fertilizers take place every single year, especially during cultivating seasons, which often caused prices to soar abnormally, thus hampering farmers' productivity.

Since the total production of urea, for example, was 6.5 million tons per year and the annual national consumption was only 4.5 million tons, there should be no reason for these companies not to meet farmer's supply needs, Agusdin added.

The association also urged the government through the Supreme Audit Agency to conduct a thorough audit on the companies to identify the root of the problem. --JP