In the first quarter of 2025, the agriculture sector posted a remarkable growth of 10.45%, a record high in Indonesia's history. The government simplified 145 regulations related to fertiliser distribution into one Presidential Regulation (Perpres), a move that accelerated the distribution flow and made rice production increase by more than 15% compared to the previous year. unification of fertiliser distribution rules into one Presidential Regulation (Perpres) as a form of bureaucratic reform in the agricultural sector. This move has accelerated distribution flows, cut logistics costs, and prevented extortion through a digitalisation system that is now able to track fertiliser distribution down to the farm level.
According to Permata Bank's Chief Economist, Josua Pardede, this regulatory simplification strengthens the supply chain and improves the efficiency of agricultural production inputs. In addition, the integration of subsidised fertiliser data clarifies policy targets, ensuring that aid is used appropriately. The government hopes that this regulatory harmonisation will strengthen national food security and support real sector-based economic growth.
