Pupuk Indonesia Group has confirmed its readiness to implement the new mechanism for subsidized fertilizer distribution in accordance with the 2025 technical guidelines (juknis) for subsidized fertilizer management and the distribution process from delivery points to farmers, as stipulated in the Decree of the Director General of Agricultural Infrastructure and Facilities (PSP), Ministry of Agriculture (MoA).

These technical guidelines serve as a complement to the Regulation of the Minister of Agriculture (Permentan) No. 15 of 2025, which is the implementing regulation of Presidential Regulation (Perpres) No. 6 of 2025 concerning the Governance of Subsidized Fertilizers.

Senior Vice President (SVP) of Sales Strategy & Customer Service at PT Pupuk Indonesia (Persero), Deni Dwiguna Sulaeman, stated that Pupuk Indonesia acts as the operator of the regulations established by the government, bearing full responsibility for the distribution of subsidized fertilizers to recipients at the designated delivery points. In practice, Pupuk Indonesia may appoint Distribution Business Entities (Pelaku Usaha Distribusi/PUD) to handle the distribution of fertilizers up to the delivery point.

"In this context, the PUDs assist Pupuk Indonesia in distributing fertilizers to the delivery point. Pupuk Indonesia is responsible for ensuring the fertilizers reach the delivery points accurately. There are four entities classified as delivery points: retailers, farmer groups (gapoktan), fish farming groups (pokdakan), and cooperatives," Deni explained during the "Mass Socialization of Subsidized Fertilizer Recipients at Delivery Points throughout East Java with the Ministry of Agriculture" event held in Gresik, East Java.

The socialization event was attended by the Head of the East Java Provincial Food Security and Agriculture Agency, the Head of the Gresik Regency Agency, 1,451 kiosk representatives, 50 agricultural extension officers, and 30 model farmers from across East Java. This event served as a joint commitment to the successful implementation of the subsidized fertilizer distribution program and the advancement of the national agricultural sector.

At the same event, Director of Risk Management at PT Petrokimia Gresik, Johanes Barus, stated that the new governance of subsidized fertilizers would be a pivotal milestone in significantly boosting farmer productivity and welfare. This initiative is also a strategic step towards achieving rice self-sufficiency by 2028, as envisioned by the President of the Republic of Indonesia, Prabowo Subianto, in his Asta Cita agenda.

"This new policy has eliminated 145 regulatory layers and approvals across ministries and regional heads. The new governance ensures that subsidized fertilizers are more targeted and accessible to farmers," Johanes explained.

To support the implementation of this new governance model, Pupuk Indonesia has upgraded its digital application system i-Pubers with a Web Commerce Module (WCM). Deni elaborated that i-Pubers will be equipped with a "Fertilizer Order" feature to capture the actual fertilizer demand in the field, based on the delivery point. Meanwhile, the WCM will be enhanced with a "Delivery Tracking" feature to monitor how long it takes for PUDs to deliver fertilizers after orders are placed.

"PUDs are now part of Pupuk Indonesia’s ecosystem, and their service performance to the delivery points will be more strictly monitored. Pupuk Indonesia has already conducted trials in Madiun and Lampung since May," he added.

The Director of Fertilizers at the Indonesian Ministry of Agriculture, Jekvy Hendra, stated that effective August 1, 2025, a new Sales and Purchase Agreement (SPJB) would be introduced to formalize the transition from traditional distributors to PUDs. This ensures that existing distributors continue to contribute to the distribution of subsidized fertilizers.

"This serves as legal proof to all our PUD colleagues that your presence and contributions are recognized and guaranteed by the state, as you continue to support the provision and distribution of fertilizers throughout Indonesia," he said.

Subsidized ZA Fertilizer for Sugarcane

During the socialization, Pupuk Indonesia also confirmed its preparedness for the upcoming distribution of ZA fertilizer as a subsidized fertilizer designated for sugarcane crops. "Pupuk Indonesia Group is ready to welcome the plan to include ZA fertilizer for sugarcane into the subsidy scheme, by preparing the necessary facilities and production means to manufacture ZA fertilizer effectively, in line with the government’s assignment," said Johannes Barus, Director of Risk Management at Petrokimia Gresik.

The government is targeting national sugar self-sufficiency by 2028. To achieve this, several regulatory revisions have been made, including the reintegration of ZA fertilizer into the subsidized fertilizer scheme.

At the same event, Head of the East Java Provincial Agriculture and Food Security Agency, Heru Suseno, emphasized the high demand for ZA fertilizer among sugarcane farmers, especially with plans for mass sugarcane planting in East Java. He mentioned that there would be an expansion of sugarcane cultivation across 100,000 hectares in East Java. Therefore, the availability of ZA fertilizer is critical to boost productivity and achieve national sugar self-sufficiency.

"East Java will be the backbone of both food and sugar self-sufficiency. Around 20,000 hectares of sugarcane land will be managed by PTPN (PT Perkebunan Nusantara) as they own their own land. However, the remaining 70,000 hectares will be allocated to farmers and private companies," Heru said.