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Agri

New Regulations: Faster Access to Subsidized Fertilizers in Indonesia

20 Nov, 2024
New Regulations: Faster Access to Subsidized Fertilizers in Indonesia

The Indonesian government is taking significant steps to simplify the distribution of subsidized fertilizers, a move expected to benefit millions of farmers across the country. The Agriculture Minister, Andi Amran Sulaiman, recently announced plans to reduce the regulatory hurdles that have delayed the delivery of fertilizers to farmers. Currently, 147 regulations govern fertilizer distribution, many of which are seen as bureaucratic obstacles.

A presidential regulation (Perpres) is being drafted to streamline these processes, with implementation expected in early 2024. Coordinating Minister for Food Affairs, Zulkifli Hasan, emphasized the importance of timely fertilizer distribution, particularly during the planting season. The new policy aims to ensure direct delivery from producers to farmer groups, bypassing regional political bottlenecks that have previously hindered the process.

As part of these reforms, the government has increased the quota of subsidized fertilizers for 2024 to 9.5 million tons, more than doubling the initial allocation of 4.7 million tons. As of November, 6 million tons—127% of the earlier target—had already been distributed, signaling strong progress toward supporting agricultural productivity.

The distribution process will now rely on a digital system, the e-RDKK (Definite Plan of Group Farmers’ Need), which simplifies the redemption process and provides real-time monitoring. This initiative aligns with the Ministry of Agriculture’s efforts to modernize the sector and ensure fair access to resources.

These measures come amid concerns about the financial strain on farmers, who often struggle to afford fertilizers despite subsidies. The policy overhaul not only reduces bureaucracy but also addresses these economic challenges by making fertilizers more accessible and affordable.

The reforms are expected to enhance agricultural output, particularly in regions like South Lampung, where rain-dependent rice fields have limited productivity. By ensuring a steady supply of fertilizers, the government aims to boost yields and improve food security nationwide.

The announcement has been welcomed as a transformative step for Indonesian agriculture, highlighting the government’s commitment to empowering farmers and modernizing the sector for long-term sustainability.

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