Purworejo, 23 December 2025 – The Coordinating Minister for Food Affairs of the Republic of Indonesia, Zulkifli Hasan (Zulhas), stated that the national fertilizer industry has become increasingly efficient following the issuance of Presidential Regulation (Perpres) Number 113 of 2025 by President Prabowo Subianto. The new regulation on the governance of subsidized fertilizers was issued to address inefficiencies in the fertilizer industry that had been highlighted by the Supreme Audit Agency (BPK).

“Pupuk Indonesia has made extraordinary breakthroughs. It started with BPK findings, followed by a change in the system. Now, the price of subsidized fertilizers (Highest Retail Price/HET) has been reduced by 20 percent. Then, within five years, Pupuk Indonesia can build seven factories. (With Perpres 113 in place,) how efficient, how cost-saving, and how much more productive Pupuk Indonesia has become—while the subsidy remains unchanged,” Zulhas said after attending the Pupuk Indonesia Farmers’ Forum (Rembuk Tani) in Purworejo, Central Java, on Tuesday (23/12/2025).

Perpres 113/2025 amends Perpres 6/2025 on the Governance of Subsidized Fertilizers. One of the key changes stipulated in the regulation is the payment scheme for procuring raw materials for subsidized fertilizers, whereby the Government disburses payments upfront, or prior to the production and distribution of subsidized fertilizers.

With this change, Pupuk Indonesia no longer bears interest expenses related to working capital financing for raw material procurement. Naturally, such procurement is aligned with the production needs of subsidized fertilizers based on annual allocations determined by the Minister of Agriculture.

In addition, the regulation strengthens supervision of fertilizer distribution and reaffirms the priority of meeting domestic fertilizer needs. As such, the regulation reinforces Pupuk Indonesia’s commitment to carrying out its mandate to distribute subsidized fertilizers in accordance with the 7 Right Principles (7T)—right target, type, quantity, price, time, place, and quality.

Furthermore, Zulhas revealed that in 2026, the Government has allocated 9.55 million tons of subsidized fertilizers for agriculture, the same amount as in 2025. In addition, the Government has allocated approximately 300,000 tons of subsidized fertilizers for fish farmers.

“We continuously go to the field to ensure that farmers and fish farmers become more prosperous. If production increases, farmers’ prosperity will improve. The main objective of President Prabowo Subianto’s policy is food self-sufficiency. Currently, grain prices are good and fertilizer distribution is smooth—so incomes are increasing,” Zulhas emphasized.

Director of Operations of Pupuk Indonesia, Dwi Satriyo Annurogo, said that the Government has provided numerous conveniences for farmers across Indonesia, resulting in more optimal fertilizer absorption. Specifically for Purworejo Regency, he added, the Government allocated 28,546 tons of subsidized fertilizers in 2025, consisting of 13,451 tons of Urea, 15,000 tons of NPK Phonska, 8 tons of NPK Cocoa, 72 tons of Petroganik organic fertilizer, and 15 tons of ZA fertilizer. Farmers absorbed 25,550 tons, or approximately 90 percent of the allocation.

“Absorption has increased significantly. In Purworejo, reallocation has already occurred twice. Current absorption has reached nearly 97 percent. The reduction in the HET of subsidized fertilizers has had an extraordinary impact on absorption,” Dwi Satriyo concluded.

To support year-end absorption, Pupuk Indonesia has also prepared 1,337 tons of subsidized fertilizer stock in Purworejo. For Central Java, the company has prepared 118,554 tons, consisting of Urea, NPK Phonska, NPK Cocoa, Petroganik organic fertilizer, and ZA.

President Director of Pupuk Indonesia, Rahmad Pribadi, stated that 2025 has marked many historic milestones achieved by the Government. Thanks to changes in distribution policy, farmers across Indonesia were, for the first time, able to redeem subsidized fertilizers starting on 1 January.

“Furthermore, the issuance of Perpres 6/2025 provided room for Pupuk Indonesia to operate more efficiently. Those efficiency gains were then passed on to farmers in the form of a 20 percent reduction in the Highest Retail Price (HET),” Rahmad said.

He also expressed appreciation for the Government’s continued support for efficiency through the issuance of Perpres 113/2025 as a refinement of Perpres 6/2025. In addition, Pupuk Indonesia is committed to implementing BPK recommendations as outlined in the Summary of Semester Audit Results (IHPS) I 2025, covering the audit period from 2022 to the first semester of 2024.

According to Rahmad, these recommendations serve as important input for the company to strengthen governance and ensure that its contribution to national food security remains optimal.