Indonesian Political, Business & Finance News

Pupuk Indonesia Has Already Distributed 1.7 Million Tonnes of Subsidised Fertiliser This Year

| | Source: KOMPAS Translated from Indonesian | Economy
Pupuk Indonesia Has Already Distributed 1.7 Million Tonnes of Subsidised Fertiliser This Year
Image: KOMPAS

JAKARTA — PT Pupuk Indonesia (Persero) has distributed 1.7 million tonnes of subsidised fertiliser from January to 6 March 2026. Corporate Secretary Pupuk Indonesia, Yehezkiel Adiperwira, said the distribution volume had reached 18% of the government’s total assignment. ‘1.7 million tonnes is a very, very significant achievement; perhaps in the past five years I could say that,’ Yehezkiel said at an iftar gathering in Cikini, Jakarta, on Friday 6 March 2026. According to Yehezkiel, the subsidised fertiliser distribution achievement was influenced by President Prabowo Subianto’s policy of lowering the Highest Retail Price (HET). The cost of all fertiliser types produced by PT Pupuk Indonesia is subsidised by up to 20%. ‘So the purchasing power of our farmers has also improved, thus demand has risen,’ Yehezkiel said. Another factor is the first planting season in 2026 that increases farmers’ consumption of fertiliser. In addition, Prabowo’s policy of cutting fertiliser distribution regulations, previously governed by 145 regulations, also had an impact. ‘The redemption process has become simpler,’ Yehezkiel said. Currently, national fertiliser stocks stand at 1.2 million tonnes with sales of 25 tonnes per day. On the other hand, production at several subsidiaries under the Pupuk Indonesia holding continues. ‘Our plants produce roughly around 50,000-60,000 tonnes per day,’ he noted. During the occasion, Yehezkiel explained that Pupuk Indonesia’s production was not directly affected by the Israel–United States war against Iran that closed the Strait of Hormuz.

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