Minister for State-Owned Enterprises (BUMN) Erick Thohir guaranteed that subsidized fertilizer stocks in Indonesia were sufficient to support national food security. This is in line with President Joko Widodo's instructions to his staff to ensure national food supply amid world geopolitical tensions. Erick noted that PT Pupuk Indonesia (Persero)'s subsidized fertilizer stock for the Urea and NPK types reached 720,552 tons as of November 15, 2022. The details were 437,770 tons of Urea fertilizer and 282,782 tons of NPK fertilizer. "We are certain to secure the availability of subsidized fertilizer according to the constitutional mandate. This subsidized fertilizer is ready to be distributed to farmers who are registered with farmer groups and electronic Group Needs Definitive Plans (e-RDKK)," said Erick in his statement, Jakarta, Wednesday (11/16). To ensure distribution, Pupuk Indonesia is supported by complete distribution facilities. This facility consists of 3 fertilizer packaging units (UPP) in Semarang, Cilacap, and Banyuwangi, 9 Distribution Center (DC) units in Makassar (3 units), Medan (2 units), Dumai, Surabaya, Celukan Bawang, and Lembar. "Then there are 590 warehouses with a capacity of 2.5 million tons, and have a network of more than 1,100 distributors and more than 28,000 official kiosks," said Erick. In addition to providing subsidized fertilizers, Pupuk Indonesia also continues to increase the availability of fertilizers by expanding non-subsidized fertilizer kiosks. Currently, the Pupuk Indonesia network's non-subsidized fertilizer kiosks have been operating in a number of provinces, such as Bali, East Java, Central Java, West Java, Lampung, South Sumatra, Riau, North Sumatra, to Aceh. "The non-subsidized fertilizer program also aims to advance business and the welfare of farmers. If productivity increases and agricultural products are maximally absorbed, the welfare of farmers can increase and national food stocks are also maintained," said Erick.
Main Director of PT Pupuk Indonesia (Persero) Bakir Pasaman said, PIHC had actually secured the supply of fertilizer raw materials until the end of 2023. Efforts to secure raw materials are carried out in several ways, such as cooperating with partner countries that produce fertilizer raw materials, especially phosphate and potassium at competitive prices. To strengthen these efforts, PIHC has also opened a representative office in Dubai as a liaison with raw material supplier countries. PIHC is also building new factories as an effort to increase fertilizer production capacity to meet both subsidized and non-subsidized national needs, as well as the international market, including plans to build a Pusri 3B urea plant in Palembang and complete the NPK factory in Lhokseumawe and review the construction of a fertilizer factory in West Papua. "Pupuk Indonesia is committed to meeting farmers' fertilizer needs by trying to keep the price of commercial or non-subsidized fertilizers affordable, by trying to set prices below international market prices," Bakir said.
Previously, President Joko Widodo asked the issue of fertilizer scarcity in order to get a bright spot at the G20 Summit. This fertilizer problem should not be underestimated, because the impact is very large for the welfare of the world community. "Don't ignore the issue of fertilizers," Jokowi said at the opening of the G20 Summit at the Kempinski Hotel, Bali, Tuesday (15/11). In front of the heads of state and leaders of the G20 countries, Jokowi asked for this fertilizer problem to be resolved immediately. Fertilizers must be available at affordable prices. "If not, then 2023 will be a more dismal year," said Jokowi. The worst impact of this fertilizer scarcity could cause a food crisis in the world. Because the agricultural sector can experience crop failure because there is no fertilizer. "Scarcity of fertilizer will result in crop failure in various parts of the world," he said.
