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Lowered subsidized fertilizer prices boost farmers productivity: govt

Farmers apply subsidized Phonska and urea fertilizers during the third planting season in rice fields in Tempurejo Village, Ngawi, East Java, Thursday, Nov. 13, 2025. (ANTARA PHOTO/ARI BOWO SUCIPTO

Jakarta (ANTARA) – Indonesia’s Deputy Minister of Agriculture Sudaryono defended the government’s 20 percent cut in subsidized fertilizer prices, saying it is intended to boost farmers’ productivity and strengthen national food security.

“Per 22 October, fertilizer prices have officially been lowered. Compensations are in place. Worry not, everything is under control,” he said during an unannounced inspection in Malang, East Java.

According to a statement that ANTARA quoted here Sunday, Sudaryono said the ministry conducted inspections to ensure maximum retail prices comply with government regulations. The surprise visits aim to enforce the policy and prevent violations at the kiosk level.

He urged all distributors and kiosks to adopt the new rates immediately, assuring them that the government will cover price differences through prepared compensation mechanisms.

Sudaryono also emphasized that fertilizer distribution will continue smoothly, allowing farmers to purchase supplies without issues if prices adhere to regulations.

During his visit to Pagentan Village, Singosari, Malang, Sudaryono spoke with farmers, who confirmed that subsidized fertilizer prices have dropped in line with the new ceiling.

The deputy minister discussed distribution processes and customer services, reaffirming the government’s commitment to ensure farmers receive timely access to fertilizers and proper support at kiosks.

The 20 percent price cut applies to all subsidized fertilizers, including urea and NPK, widely used by farmers across Indonesia.

Since the policy’s implementation, fertilizer uptake has surged. Ministry data shows daily purchases increased from 42,000 to between 72,000 and 78,000 farmers per day.

According to Jekvy Hendra, the ministry’s director for fertilizers, PT Pupuk Indonesia data shows the price cut led to sales of 180,000 tonnes of urea and 266,800 tonnes of NPK Phonska fertilizers.

The ministry said ongoing market monitoring will ensure stock availability, stable prices, and continued support for farmers, reflecting the government’s effort to strengthen agricultural productivity and national food security.

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Published Date: November 24, 2025

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