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Subsidized fertilizers hoarded by big oil palm plantation firm
A large-scale oil palm plantation company has been caught hoarding a large amount of subsidized fertilizer that small-scale farmers in the province are in short supply of
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large-scale oil palm plantation company has been caught hoarding a large amount of subsidized fertilizer that small-scale farmers in the province are in short supply of.
Farmers of the Andalan National Farming Community (KTNA) in Mesuji, Lampung, said they had found at least 200 tons of subsidized fertilizer being transported to the a plantation, owned by PT Bangun Tata Lampung Asri (BTLA), every fertilizing period.
Councilor Dedi Aprizal from the Lampung Legislative Council said he had received complaints from
the farmers.
“I was initially shown photographs [of the hoard] by Mesuji KTNA manager. When I went to the plantation, I saw a large volume of subsidized fertilizer ready to be used,” he said recently.
“It’s ironic. The farmers are the ones who are entitled to the fertilizers while the ferlilizers are scarce on the market,” he said.
A shortage of fertilizer over the last two months has caused prices to soar.
Dedi said the company aknowledged that they used subsidized fertilizers but were ignorant of the ruling that big companies were forbidden from using them.
The council is scheduled to hold an inquiry session over the issue by summoning managers from PT Pusri and BTLA’s subsidiary company CV Bumi Waras.
Palembang-based PT Pusri produces the fertilizers.
Bumi Waras has been blamed for storing the fertilizers in its warehouse in Way Lunik, before transporting them to BTLA.
Sutisna, an official of PT Pusri of Lampung office, said the distribution to BTLA was in line with procedure and that his company could not be held responsible for the irregularity.
“We obtained the fertilizers from confiscations, or damaged fertilizer, which can not be distributed to farmers. The fertilizer would have been sold to farmers, but it was spoilt by rain so it was no good for crops,” Sutisna said.
“We have all the supporting documents,” he added.
Based on standard operational procedures, said Sutisna, the spoilt fertilizer should not go to the farmers because it could harm the crops.
He added that damage to the fertilizer usually occurred during transportation from the warehouse to the location of the recipients of subsidized fertilizer.
CV Bumi Waras managing director Abeng said his company had bought the urea fertilizer, produced by PT Pusri Palembang officially from the Lampung branch PT Pusri.
“We obtained it after winning a tender. The volume is not just 200 tons, but up to 350 tons,” he said.
Based on observations, subsidized fertilizer fraud has become rampant over the past five years, but police have detained no one despite overwhelming evidence.
