Indonesian Political, Business & Finance News

Pupuk Indonesia Guarantees Supply of Subsidised Fertilisers in Central Java

| | Source: MEDIA_INDONESIA Translated from Indonesian | Agriculture
Pupuk Indonesia Guarantees Supply of Subsidised Fertilisers in Central Java
Image: MEDIA_INDONESIA

PT Pupuk Indonesia (Persero) has guaranteed the availability of subsidised fertilisers in the Central Java region. Farmers can redeem them easily, as the subsidised fertilisers are available in accordance with the allocation set by the Government. This was conveyed by Pupuk Indonesia Regional CEO 2, Muhammad Ihwan F., after inspecting the Tegal Fertiliser Warehouse in Suradadi District, Tegal Regency, Central Java, through an official statement received on Friday (5/6). Ihwan stated that to maintain smooth distribution and availability of subsidised fertilisers, Pupuk Indonesia implements a flexible supply scheme between regions. Each warehouse located within Pupuk Indonesia’s working area is not solely designated for that particular area. ‘We adhere to the principle of flexibility, meaning if there is additional supply needed, farmers in that region do not need to worry because they will still be supplied through nearby warehouses,’ said Ihwan. Ihwan mentioned that the flexibility principle also applies between factories. Subsidised fertiliser supplies for Tegal Regency can be sent from any Pupuk Indonesia subsidiary if needed, so that farmers’ needs are met in a timely manner. ‘The main priority is that farmers’ needs are fulfilled, with no obstacles, especially during the planting season. With this flexibility scheme, farmers do not need to worry; they can use subsidised fertilisers as best as possible for food security and the food self-sufficiency proclaimed by the Government,’ Ihwan explained. Ihwan further explained that in addition to flexibility, the Government had previously also lowered the Highest Retail Price (HET) of subsidised fertilisers by 20 per cent starting October 2025 to ease farmers’ access to subsidised fertilisers. This reduction reflects the Government’s alignment with farmers, particularly amidst geopolitical conditions and the threat of a global food crisis. ‘Farmers must not redeem subsidised fertilisers for more than the HET. If anyone finds prices exceeding the HET, please check first whether the receipt includes transport costs or group dues, while the price for the fertiliser itself should comply with the HET,’ Ihwan clarified. He also confirmed that farmers in 2026 need not worry about the HET of subsidised fertilisers amid the weakening Rupiah exchange rate. Pupuk Indonesia guarantees there will be no price increase in 2026. This is a form of the Government’s concern in helping farmers cultivate and achieve food self-sufficiency. ‘These conveniences have led to an increase in the realisation of subsidised fertiliser redemptions. As of 3 June 2026, the redemption rate for subsidised fertilisers in Central Java reached 701,670 tonnes, equivalent to 49 per cent of the total 2026 allocation for Central Java,’ he explained. According to Ihwan, to ensure the distribution of subsidised fertilisers in Central Java runs even more smoothly, Pupuk Indonesia has prepared subsidised fertiliser stocks amounting to 45,373 tonnes. The stock as of 3 June 2026 is in a safe condition, with details of Urea at 19,017 tonnes, NPK at 21,768 tonnes, Organic at 3,719 tonnes, ZA at 636 tonnes, and SP-36 fertiliser at 233 tonnes. ‘As for the Tegal area, fertiliser stocks are recorded at 1,693 tonnes, consisting of 1,149 tonnes of Urea, 317 tonnes of NPK, 210 tonnes of Organic and 17 tonnes of ZA. This amount is sufficient to support the planting season needs of farmers in Tegal,’ Ihwan detailed, adding that the stock in the Tegal Fertiliser Warehouse could suffice for the next 3 weeks, and farmers need not worry.

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