Signing Contract for 9.8 Million Tons, Pupuk Indonesia Ready to Distribute Subsidized Fertilizers Starting 1 January 2026

  • Posted by User01
  • 1 January2026
  • 23:03WIB
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Jakarta, 29 December 2025PT Pupuk Indonesia (Persero), together with the Ministry of Agriculture of the Republic of Indonesia, has signed a procurement and distribution agreement for subsidized fertilizers for the 2026 fiscal year, amounting to 9.8 million tons for the agricultural and fisheries sectors. The signing ceremony took place on Monday (29/12/2025) in Jakarta. Pupuk Indonesia has confirmed its readiness to begin distributing subsidized fertilizers starting 1 January 2026.

Director of Supply Chain of Pupuk Indonesia, Robby Setiabudi Madjid, expressed his appreciation to the Ministry of Agriculture for ensuring that the contract signing was completed on schedule, enabling Pupuk Indonesia to commence the distribution of subsidized fertilizers on 1 January 2026. He added that the agreement will serve as the legal basis for Pupuk Indonesia’s distribution of subsidized fertilizers throughout 2026.

“As of 1 January 2026, subsidized fertilizers for both the agricultural and fisheries sectors can be redeemed by farmers and fish farmers, provided that they are registered as eligible recipients of subsidized fertilizers,” Robby said.

He further explained that to ensure readiness, Pupuk Indonesia has prepared sufficient stock in accordance with the safety stock levels stipulated by the Government. These stocks have already been positioned at Fertilizer Recipients at Distribution Points (PPTS) across Indonesia.

“We have also conducted system tests to ensure operational readiness. God willing, starting at 00:00 on 1 January 2026, registered farmers and fish farmers will be able to redeem subsidized fertilizers at PPTS outlets in accordance with the Highest Retail Price (HET),” he emphasized.

Robby also expressed hope for active support from all stakeholders in monitoring the distribution of subsidized fertilizers. He reaffirmed Pupuk Indonesia’s commitment to distributing subsidized fertilizers nationwide in support of national food self-sufficiency, in line with the 7 Right Principles (7T)—right target, type, quantity, price, time, place, and quality.

Meanwhile, Director of Fertilizers at the Ministry of Agriculture, Jekvy Hendra, stated that in 2026 the Government has allocated a budget ceiling of IDR 46.87 trillion for subsidized fertilizers. This budget covers both the agricultural and fisheries sectors, with a total subsidized fertilizer allocation of 9.8 million tons.

Jekvy explained that the allocation of subsidized fertilizers for the agricultural sector in 2026 remains the same as in 2025, totaling 9.55 million tons, as stipulated in Minister of Agriculture Decree (Kepmentan) Number 1360/Kpts/Hk.150/M/12/2025 dated 12 December 2025.

The breakdown includes 4,423,023 tons of Urea, 4,471,026 tons of NPK, 81,179 tons of NPK for Cocoa, and 558,273 tons of organic fertilizer. Additionally, the Government has allocated 16,449 tons of subsidized ZA fertilizer.

Jekvy added that in 2026 the Government has once again allocated subsidized fertilizers for the fisheries sector, following a four-year period during which fish farmers were excluded from the subsidy scheme.

The allocation of subsidized fertilizers for fish farmers, based on Minister of Agriculture Decree Number 1397/Kpts/Hk.130/M/12/2025 dated 29 December 2025, amounts to 295,676 tons, consisting of 125,397 tons of Urea, 86,445 tons of SP-36, and 83,834 tons of organic fertilizer.

Jekvy emphasized that subsidized fertilizers for the agricultural sector can only be redeemed by farmers registered in the Electronic Definitive Plan for Group Fertilizer Requirements (e-RDKK) of the Ministry of Agriculture. Meanwhile, fish farmers must be registered in the Electronic Plan for the Provision and Distribution of Subsidized Fertilizers (e-RPSP) of the Ministry of Marine Affairs and Fisheries (KKP).

“Subsidized fertilizers can be redeemed by registered farmers and fish farmers starting at 00:00 on 1 January 2026. We would like to thank Pupuk Indonesia as the implementing entity for confirming its readiness to distribute subsidized fertilizers,” Jekvy concluded.

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