The fertilizer industry plays a crucial role in supporting Indonesia's food security and economy. Ensuring national food availability through increased crop production and productivity relies heavily on the effective use of fertilizers. The government is committed to revitalizing the fertilizer industry by modernizing its infrastructure. This effort requires collaboration among industry players, research institutions, and relevant ministries to develop more efficient and sustainable fertilizers, addressing global challenges such as raw material price fluctuations and climate change. During a visit to PT Pupuk Kalimantan Timur (Pupuk Kaltim) in Bontang, East Kalimantan, on 13 August 2024, Coordinating Minister for Economic Affairs Airlangga Hartarto emphasized that fertilizer production is essential for Indonesia’s agricultural revolution, particularly in rice production. He highlighted that Pupuk Kaltim's role in advancing green technology, with a move toward blue technology, is setting a benchmark for environmentally friendly industries.
Minister Airlangga expressed confidence in Indonesia's potential to become the largest producer of green fertilizer in the Asia-Pacific region. He emphasized the future of energy lies in hydrogen, with ammonia as a strong alternative, already being used in combination with carbon capture and storage to create green energy. The government has increased the 2024 subsidized fertilizer allocation to 9.55 million tons, up from an initial 4.7 million tons. The fertilizer subsidy budget has also been raised by Rp7.1 trillion, bringing the total to IDR 33.78 trillion. Efforts are underway to enhance transparency and efficiency in the distribution of subsidized fertilizers through digital technology, integrating systems such as the i-Pubers application to ensure accurate targeting and delivery to farmers. Airlangga stressed the importance of precise distribution and the implementation of digital systems as directed by President Joko Widodo.
