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View all search resultsHouse pushes Danantara role in subsidized fertilizer strategy
A new House proposal for Danantara to invest in domestic fertilizer factories aims to tackle the industry's long-standing issue of import dependency as part of a strategy to overhaul the subsidized fertilizer system.
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The Danantara Indonesia logo adorns the entry canopy at the state asset fund’s Central Jakarta headquarters on Feb. 28, 2025. (Reuters/Willy Kurniawan)
T
he House of Representatives has proposed that state asset fund Danantara play a pivotal role in overhauling the subsidized fertilizer system through strategic investment in factories to curb import dependency.
The request was made during a joint working meeting on Thursday between the House’s State Finance Accountability Committee (BAKN) and representatives of several ministries to finalize a review of subsidized fertilizer governance.
Involving Danantara was a critical step toward achieving long-term production efficiency and affordability, BAKN deputy chairman Herman Khaeron said after the meeting at the Senayan Legislative Complex in Central Jakarta.
He suggested that the state asset fund “focus on building or revitalizing fertilizer factories along with other investments", noting the urgent need for investment, as 60 percent of components for domestic fertilizer production were still imported.
This heavy reliance inflated costs and disrupted the supply chain, ultimately burdening farmers and the state budget, Herman said.
“If this percentage can be reduced, the fertilizer distribution chain will be more affordable, as dependence on [costly imports] can be reduced,” he said on Sept. 11, as quoted by Bisnis.com.
The meeting also resulted in recommendations for the Agriculture Ministry, the Trade Ministry, the State-Owned Enterprises (SOEs) Ministry and the Finance Ministry related to the distribution of subsidized fertilizer.
