Friday, April 19, 2024

Government still owes fertilizer subsidy of nearly Rp1 trillion to Pupuk Indonesia

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Audina Nur

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State-owned fertilizing holding company PT Pupuk Indonesia recorded the government’s debt to settle fertilizer subsidies almost complete, with a remaining balance of nearly Rp1 trillion (US$ 63.5 million) for the period of 2020-2021.

CEO of Pupuk Indonesia Rahmad Pribadi said the government had settled a subsidy debt of Rp16.6 trillion on December 28, 2023. He expressed confidence in the government’s ability to pay off the remaining debt.

“This means that almost all underpaid subsidy bills have been paid, with about Rp1 trillion remaining for the years 2020-2021,” Rahmad said in Jakarta on Monday, March 18, 2024.

According to Rahmad, the government’s debt of less than Rp1 trillion does not mean the government is unwilling to pay, but there are still documents and additional explanations being processed.

“We are never worried about the government’s ability to pay because the government will definitely pay; underpaid subsidies are usually delayed due to administrative issues,” he said.

Commission IV Chairman, Sudin, revealed that the Rp27 trillion debt was the fertilizer subsidy debt for 2020-2023 as audited by the Supreme Audit Agency (BPK). “Until today, it has not been submitted to the Ministry of Finance, supposedly, it’s delayed, supposedly, by the Ministry of Agriculture. Meanwhile, the BPK audit has been completed. So when will this be done?” the Indonesian Democratic Party of Struggle (PDI-P) politician said,

He expressed concern that the unpaid debt might discourage Pupuk Indonesia from producing fertilizer due to a lack of funds. Moreover, in September 2024, Minister of State-Owned Enterprises (SOEs) Erick Thohir also mentioned the government’s debt, in this case, the Ministry of Finance, to PT Pupuk Subsidi, which has not been paid.

Audina Nur

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