RI to import fertilizers to increase local supply

JAKARTA (JP): Indonesia plans to import 316,000 tons of fertilizers until April in order to fulfill the gaps in supply in the domestic market, Minister of Cooperatives and Small Enterprises Adi Sasono said on Wednesday.

"Fertilizers supply is badly needed during the current planting season to ensure that our rice and food crop production reaches a satisfactory level," he said during the hearing with the House of Representatives Commission V for industry, trade, manpower, mining and cooperatives.

Adi said that during January to April this year, the government would import 66,000 tons of ZA, 150,000 tons of Tri Superphospate (TSP) and 100,000 tons of Potassium chloride (KCl) to supply the domestic market.

He said some 6,000 tons of urea arrived in January. There will be 35,000 tons of ZA, 80,000 tons of TSP, and 20,000 tons of KCl arrived in February. In March, 25,000 tons of ZA, 70,000 tons of 45,000 tons will come, while the remaining 35,000 tons KCl will arrive in April.

The fertilizers were to arrive at Medan's Belawan port, Padang's Teluk Bayur, Lampung, Dumai, Jakarta's Tanjung Priok harbor, Cirebon, Cilacap, Surabaya's Tanjung Perak harbor and Ujungpandang.

The imported fertilizers would be distributed to farmers by state fertilizer firm PT Pupuk Sriwijaya (Pusri).

The government lifted its subsidies on fertilizers and removed all restrictions on the trade on Dec. 1, following allegations that most of the subsidized fertilizers were sold to big plantation companies, rather than to farmers.

The removal of the subsidy has caused a sharp increase in fertilizer prices, dealing a severe blow to the country's impoverished farmers.

The imported fertilizers are expected to push up prices in the local market, Adi said.

Meanwhile, Director General of the Empowerment of Cooperatives Iskandar Susilo told the hearing that central Bank Indonesia has agreed to provide Rp 778 billion in loans to cooperatives and non-governmental organizations to be used for purchasing food.

"The loans are expected to be received by cooperatives and non-governmental organizations within one week. The loans are necessary for the cooperatives to procure food and to buy rice from farmers in order to protect them from the current fall in the price of unhusked rice," he said.

He said that the loans would be distributed by state Bank Rakyat Indonesia (BRI), Bank Dagang Negara (BDN), and Bank Bumi Daya (BBD), Bank Bukopin, Bank Danamon and provincial development banks.

The loans will be distributed to around 5,000 cooperatives and 500 non-governmental organizations nationwide, he said. (gis)