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Govt owes Rp 12 trillion in unpaid subsidy to fertilizer SOE
The payable was for a fertilizer subsidy provided for farmers from 2020 to April this year.
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Food for food: A farmer applies dry fertilizer on a paddy field in Sawit, Boyolali, Central Java, on March 1, 2024. The government has allocated a total of 9.55 tonnes of subsidized fertilizer to distributed nationwide throughout 2024.
(Antara/Aloysius Jarot Nugroho)
T
he government has yet to compensate state-owned fertilizer producer PT Pupuk Indonesia for a Rp 12.46 trillion (US$76.5 million) fertilizer subsidy provided for farmers from 2020 to April this year, the company said on Wednesday.
Last year’s payable contributed a lion share at Rp 9.8 trillion, with the payment still pending due to ongoing Supreme Audit Agency (BPK) audits, Pupuk Indonesia told lawmakers of House Commission IV, which oversees agriculture and forestry.
Then there were payables of Rp 430 billion for 2020 and Rp 189.2 billion for 2022, both also under review of the BPK and the Agriculture Ministry’s inspectorate general.
Read also: End of natural gas subsidies could mean more fertilizer subsidy spending
In the first four months of this year, the government already owed Rp 1.9 trillion to Pupuk Indonesia, the company said.
Pupuk Indonesia CEO Rahmad Pribadi said the company was responsible for distributing 9.5 million tonnes of subsidized fertilizer this year, with 29 percent of this realized in the first half of this year.
Rahmad said the company was facing hurdles in distributing subsidized fertilizer due to the delayed administration process at the regency and district levels, as both had to provide details on the allotments for their recipients.
