“This amendment under Perpres 113/2025 enables savings that will later be allocated for revitalization efforts, while maintaining affordable redemption prices for farmers,” said Pupuk Indonesia’s SVP of Sales Strategy and Customer Service, Asep Saepul Muslim, during a webinar titled “Examining Presidential Regulation No. 113 of 2025 on Subsidized Fertilizer Governance,” organized by Sinar Tani on Wednesday (18/2/2026).

He added that Pupuk Indonesia currently operates more than 20 fertilizer plants that are over two decades old and therefore require revitalization. Asep explained that one of the key changes in Perpres 113/2025 concerns the billing mechanism for subsidized fertilizer, which has shifted from a production cost-based scheme to a marked-to-market mechanism, or one based on market prices. This change requires the fertilizer industry, particularly Pupuk Indonesia, to operate more efficiently.

Another significant change, he continued, is that government payments for the procurement of raw materials for subsidized fertilizer are now made upfront, or before the production and distribution processes begin. With this adjustment, Pupuk Indonesia will no longer need to bear interest expenses related to working capital financing.

“Pupuk Indonesia fully supports the implementation of Perpres 113/2025. This reflects the company’s commitment to continuing national food self-sufficiency efforts through ensuring fertilizer availability,” said Asep.

Similarly, the Head of the Subsidized Fertilizer Substance Group (Kapoksi) at the Directorate General of Agricultural Infrastructure and Facilities (Ditjen PSP), Ministry of Agriculture of the Republic of Indonesia, Sry Pujiati, who also served as a speaker at the webinar, explained that the fundamental changes in Perpres 113/2025 include the upfront payment scheme for raw material procurement of subsidized fertilizer and the calculation of fertilizer subsidy funds based on commercial value with reference to the Highest Retail Price (HET) or marked-to-market mechanism.

“This change in scheme does not alter the redemption process or other governance aspects carried out by farmers. We aim to ensure the availability of subsidized fertilizer and enable factories to operate properly,” she stated.

She further added that subsidized fertilizer allocation under Perpres 113/2025 is also dynamic. This means that if fertilizer allocation in a particular region has been fully absorbed, reallocation can be carried out. Reallocation is recommended to first take place between sub-districts to expedite the process.

“This is why monitoring and supervision at the regional level must continue to be carried out, so that fertilizer shortages do not occur in the field,” Sry emphasized.

Meanwhile, this year the Government has allocated 9.55 million tons of subsidized fertilizer for the agricultural sector and 295,686 tons for fisheries. A total of 14,458,517 National Identification Numbers (NIK) of farmers have been registered in the Electronic Definitive Group Needs Plan (e-RDKK), while 101,678 NIKs of fish farmers have been recorded in the Electronic Fertilizer Subsidy Provision and Distribution Plan (e-RPSP). These farmers and fish cultivators are eligible to redeem subsidized fertilizer.

“As of today, from the 9.55 million-ton allocation, national realization stands at 11.3 percent. There is still a substantial fertilizer allocation available, and farmers need not worry about shortages in the field,” she concluded.