"Through this policy, the government has set a 20 percent reduction in fertilizer prices," he confirmed in Magelang on Friday (December 19).
Hasan conveyed this statement at a Farmers' Consultation and Socialization of the Policy on Changes to the Highest Retail Price (HET) for Subsidized Fertilizer in Pucang Village, Magelang District, Central Java.
"The value of fertilizer subsidies remains relatively stable, around Rp45 trillion (US$2.6 billion) to Rp45.5 trillion (US$2.64 billion), and may only increase slightly to around Rp46 trillion (US$2.67 billion). However, with efficiency and appropriate policies, prices can be lowered and new factories can still be built," he continued.
The minister addressed that this policy is the result of an in-depth study by the State Audit Board (BPK), which President Subianto approved.
One key to efficiency is the early distribution of subsidies, which can reduce interest costs on fertilizer factories, he added.
With this new system, Pupuk Indonesia can build one new plant each year, with a target of five to seven plants within five years, without increasing the burden of state subsidies.
President Director of PT Pupuk Indonesia, Rahmad Pribadi, stated that the year 2025 marked a historic year for the national agricultural sector, particularly in fertilizer distribution.
"Starting January 1, 2025, the government deregulated fertilizer distribution. Farmers throughout Indonesia have easier access to fertilizer, and the efficiencies we achieve will be returned to farmers in the form of a 20 percent price discount," Pribadi continued.
He also stated that the farmer consultation forum is a strategic place for farmers to discuss, exchange ideas, and convey their aspirations directly to the government and state-owned fertilizer companies, while ensuring that policies are implemented effectively.
Related news: Prabowo pushes to revitalize fertilizer plants, boost STEM
Related news: Minister reviews fertilizer price cut policy in East Java's Bondowoso
Translator: Heru Suyitno, Resinta Sulistiyandari
Editor: Azis Kurmala
Copyright © ANTARA 2025
