Subsidised Fertiliser Scheme Overhauled, Production 'Forced' to Be Efficient

The government has issued Presidential Regulation 113 of 2025 concerning a marked-to-market scheme for distributing subsidised fertiliser, aimed at increasing the efficiency of the national fertiliser industry. Deputy for Food and Agriculture Business Coordination at the Coordinating Ministry for Food, Widastuti, stated that this regulation is intended to make the fertiliser distribution process more efficient and to resolve issues regarding fertiliser prices and the procurement of raw materials. Among the changes is a revision to the calculation of upfront payments for fertiliser subsidies, thereby assisting the fertiliser producer, PT Pupuk Indonesia, in optimising production. On the farmers’ side, a reduction in the cost of goods sold (HPP) also helps farmers access subsidised fertiliser at food prices. This is expected to accelerate production and increase food productivity towards achieving food self-sufficiency. Meanwhile, Pupuk Indonesia’s Supply Chain Director, Robby Setiabudi Madjid, said that Presidential Regulation 113/2025 provides protection for the fertiliser industry, enabling it to be highly competitive in supporting food security.