Indonesian Political, Business & Finance News

Pusri's reason for price hike doesn't make sense

| Source: JP

Pusri's reason for price hike doesn't make sense

The board of directors of fertilizer plant PT Pupuk Sriwijaya
(Pusri) has raised the price of urea fertilizer at the warehouse
level, saying that this rise will not increase the selling price
set for farmers. This argument does not make sense. If Pusri
raises it price because the gas it uses is not subsidized, why
can't distributors raise the selling price for farmers?

Earlier Pusri changed the distribution of its fertilizer,
causing instability in fertilizer supplies in some areas. It was
also rumored that Pusri intended to export its products because
of the high international prices. As a result of this, many
farmers postponed their planting period and are now suffering
from harvest failures.

It is true that the subsidy of five US cents for every Million
British Thermal Unit (MMBTU) that the government promised Pusri
has yet to be channeled. The ministers concerned must be reminded
to get things done, or else they will forget all about it.

We are still in a crisis. Everywhere, when there is a crisis,
efforts are made to push the economic activities of the
community. Without these economic activities, we cannot emerge
from the crisis.

In this context, given our rich natural resources, we must try
to help our farmers and make agriculture the basis of our
economy.

Unless our leaders and decision-makers stop being interested
only in myopic and short-term decisions, as with fertilizer, our
country will sink deeper into crisis.

-- Kompas, Jakarta

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