RI to import fertilizers to increase local supply

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)