inp.polri.go.id - Jakarta. Coordinating Minister for Food Affairs Zulkifli Hasan expressed his appreciation for the Ministry of Agriculture's breakthrough in reducing subsidized fertilizer prices by 20 percent. This policy was implemented without increasing the state subsidy budget.
"This is a breakthrough by the Minister of Agriculture and the President Director of Pupuk Indonesia. With fixed subsidies, prices can be reduced by 20 percent," he said after the 2026 Coordination Meeting on Grain and Rice Absorption and the Signing of a Joint Commitment between the Ministry of Agriculture, the National Food Agency, and the State Logistics Agency (Bulog), on Monday (1/12/2026).
The Coordinating Minister for Food stated that fertilizer governance reforms have made distribution more efficient and targeted. He cited the price of 50 kilograms of urea fertilizer, for example, dropping from IDR 112,500 to IDR 95,000.
This price reduction applies to all types of subsidized fertilizer in Indonesia. This policy marks the first official reduction in subsidized fertilizer prices by the government.
He stated that the change in the fertilizer scheme also opens up opportunities for the construction of up to seven new factories. The shift from a cost-plus system to a market-to-market system increases the efficiency of the fertilizer industry.
Meanwhile, Minister of Agriculture Andi Amran Sulaiman stated that this policy was a direct directive from President Prabowo Subianto. The goal is to ensure timely and affordable fertilizer availability for farmers.
The fertilizer price reduction will take effect on October 22, 2025. This policy is outlined in the Minister of Agriculture's official decree regarding the maximum retail price for fertilizer.
"We are shortening the distribution chain. Furthermore, we are reducing fertilizer prices by 20 percent without increasing state budget subsidies," he explained.
The government believes this policy will help improve farmer welfare and agricultural productivity. This step also strengthens the competitiveness of the national fertilizer industry.
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