Trade and Sate-owned Enterprises (SOEs) Commission VI of the House of Representatives (DPR) has called for the acceleration of the ratification of the Presidential Regulation (Perpres) to simplify the distribution chain of subsidized fertilizers in the country. 

The measure is considered strategic to increase efficiency and support the productivity of the national agricultural sector. Distribution of subsidized fertilizers has been facing an obstacle of a long bureaucratic chain, considered as the source of slow absorption.

Member of Commission VI of the National Awakening Party (PKB) faction, Nasim Khan, highlighted the inaccuracy of distribution targets as the main problem.

"This problem is more related to government regulations, starting from the Ministry to the regional government, which subsequently fail to appropriately target the farmer groups in need,” Nasim said in a hearing with executives of State-owned fertilizer holding company PT Pupuk Indonesia on Monday, December 2, 2024.

He added that the distribution process often only reaches 50 percent of the target by the end of the period. This has a direct impact on the limited supply of fertilizer at the farmer level, thus hampering productivity.

Nasim also emphasized the importance of strict supervision to prevent misuse.

"Supervision must involve the provincial police and the Military Regional Command (Kodam) to minimize misappropriation, such as fertilizer sold at above the Highest Retail Price (HET)," he said.

Lengthy bureaucratic chain

In its report, PT Pupuk Indonesia reported that as of November 30, 2024, it had distributed 6.7 million tons of subsidized fertilizer, or 88.9 percent of the target of 7.54 million tons. This distribution includes 3.2 million tons of NPK fertilizer, 3.4 million tons of urea fertilizer, and 40 thousand tons of organic fertilizer.

President Director of Pupuk Indonesia, Rahmad Pribadi, considered the multi-level distribution process to be the main obstacle.

"The bureaucratic chain from the Ministry to farmers is too long. With this Presidential Regulation, distribution is expected to be simpler so that farmers can get fertilizer more easily," Rahmad said.