Pupuk Indonesia Tightens Oversight on Subsidized Fertilizer Distribution
JAKARTA, investortrust.id – PT Pupuk Indonesia (Persero) has reaffirmed its commitment to ensuring the distribution of subsidized fertilizers adheres to regulations, taking steps to tighten oversight and impose strict penalties on sellers who fail to comply with fertilizer retail price cap, known as HET.
"Selling subsidized fertilizers above the HET is a serious violation and can result in criminal sanctions. We are committed to ensuring fertilizer distribution remains affordable for farmers, in line with the mandate of the law," said Tri Wahyudi Saleh, Director of Marketing at Pupuk Indonesia, in an official statement on Saturday, Jan. 18, 2025.
Tri emphasized that the company will not tolerate violations that harm farmers. Penalties include prison sentences of up to 20 years and fines of up to Rp 1 billion.
For kiosks found to be violating the rules, Pupuk Indonesia mandates that they refund the price difference to the farmers who were overcharged due to sales above the HET. Additionally, these "non-compliant" kiosks are required to display a commitment banner stating they will sell subsidized fertilizers in accordance with the applicable HET.
"If violations persist, we will not hesitate to sever our partnership with the involved kiosk or distributor. This is a crucial step to protect farmers from fraudulent practices," Tri asserted.
However, Tri acknowledged that sometimes additional costs for transportation or fertilizer handling are added to the subsidized fertilizers. This decision may create the perception that the HET has been raised.
Nonetheless, these adjustments are typically agreements made between kiosks and farmers.
As a preventive measure, Pupuk Indonesia is intensifying education efforts for farmers, kiosks, and other stakeholders about the importance of complying with the HET. For instance, all price increases agreed upon between kiosks and farmers, including shipping costs, must be clearly recorded on the receipt.
"We encourage anyone who knows of a violation to immediately contact local sales staff. We will ensure the distributor or kiosk is warned," he said.
Reports can be made through Pupuk Indonesia’s field team or by contacting the company’s official customer service center. Farmers can access the customer service by calling the toll-free number 0800 100 8001 or WhatsApp at 0811 9918 001.
The HET for subsidized fertilizers for 2025 is regulated in the Decree of the Minister of Agriculture of the Republic of Indonesia No. 644/kPTS/SR.310/M/11/2024. The decree sets the following HET for fertilizers at kiosks or retailers: Rp 2,250 per kg for Urea, Rp 2,300 per kg for NPK Phonska, Rp 3,300 per kg for NPK for cocoa, and Rp 800 per kg for organic fertilizers.