he government plans to issue a presidential regulation (Perpres) to simplify the distribution of subsidized fertilizers. The plan received a positive response from relevant stakeholders during a focus group discussion (FGD) hosted by Tenggara Startegics and the Centre for Strategic and International Studies (CSIS) Indonesia. The FGD, held on Dec. 18, carried the theme “Accelerating access to subsidized fertilizers for Indonesian farmers”. Discussion participants agreed that the administration of subsidized fertilizer distribution needs to be simplified at both the central and regional levels.
Coordinating Food Minister Zulkifli Hasan said earlier that the government had agreed to simplify the distribution of subsidized fertilizers under a single gateway at the Agriculture Ministry. Following a food affairs coordination meeting at the Forestry Ministry on Dec. 12, Zulkifli explained that the Agriculture Ministry would directly instruct PT Pupuk Indonesia Holding Company (PIHC) to distribute fertilizers to gapoktan (village-level farmers groups), without involving governors, regents or mayors.
FGD participants welcomed this simplified plan, particularly the elimination of regulations on distribution zonation and fertilizer stock provisions that often incur high costs for PIHC. However, they also emphasized the need to ensure that the new regulation does not create further problems and truly accelerates the distribution of fertilizers according to the seven “right” principles of accuracy: Right time, right quantity, right type, right place, right quality, right price and right recipient.
Andalan Fishermen and Farmers Community (KTNA) chairman Yadi Sofyan, who participated in the FGD, stated that the current practice of subsidized fertilizer distribution has burdened farmers with unnecessary requirements, such as the requirement to present an ID card (KTP) when redeeming fertilizers, having their ID photographed and making an electronic signature on a smartphone.
“The plan to cut down on the bureaucratic chain of subsidized fertilizer distribution is great news for farmers, making it easier to access subsidized fertilizers. On this occasion, we at KTNA, representing farmers, extend our gratitude for this initiative,” Yadi said during the FGD.
Another FGD participant and legislator from House of Representatives’ Commission IV on agriculture, Hanan Abdul Rozak, acknowledged that in the current distribution system of subsidized fertilizers, irregularities still occur, especially at the distributor and retailer levels.
Hanan proposed strengthening the capacity of gapoktan so they could effectively serve as fertilizer retailers. Based on his experience as a regent at Tulang Bawang and Tulang Bawang Barat, Lampung, South Sumatra, Hanan noted that gapoktan could be empowered to become business entities.
“When I was a regent in Tulang Bawang, I encouraged the gapoktan to transform into business entities to handle various tasks in collaboration with the local government. Many of them eventually made that transformation. However, they do need guidance and empowerment to make this transformation, from merely gathering as a farmers group to becoming a business entity,” Hanan explained.
KTNA chairman Yadi Sofyan agreed with Hanan regarding the need to empower gapoktan as most of them face limited capital. This could pose challenges if they are required to provide upfront capital to purchase subsidized fertilizers from PIHC for farmer groups under their coordination. Beyond capital, gapoktan also face challenges in managing organizational administration and lack access to modern technology. Therefore, capacity-building efforts are needed before they can be designated as retailers of subsidized fertilizers.
Furthermore, Riyadi Suparno from Tenggara Strategics raised a question regarding who would be responsible for ensuring that subsidized fertilizers reach the farmers as the intended recipients under the new system. Riyadi suggested that PIHC's responsibility should extend only to the final point where it hands over the fertilizers, that is, to farmer groups or retailers. A supervision mechanism at the village level needs to be established to supervise distribution of fertilizers from gapoktan and retailers to farmers. PIHC could assist the supervision by providing necessary technology, such as biometric technology, to facilitate monitoring.
Riyadi also proposed that the government shift from the problematic database of the definitive plan for the farmers group electronic system (e-RDKK) to a geospatial system as a basis to determine the volume of subsidized fertilizers for the whole country and their distribution to the farmers as the right recipients.
As a next step, the FGD participants agreed on the importance of ensuring that the implementation of the policy to simplify subsidized fertilizer distribution not only accelerates the process, but also ensures sustainability and efficiency in a manner beneficial to farmers. Strengthening distribution infrastructure, from upstream fertilizer producers under PIHC to gapoktan or retailers, will be key to achieving this goal.
In this regard, stakeholders, including the government, PIHC and gapoktan, need to collaborate to establish a clear mechanism, improve access to technology and provide adequate supports, especially to gapoktan. This must be done in order to ensure that subsidized fertilizer distribution runs smoothly and effectively targets the intended recipients, ultimately enhancing the welfare of farmers across Indonesia.
The FGD was also attended by government representatives, including Bona Kusuma, assistant deputy for agricultural production facilities and infrastructure management at the Coordinating Food Ministry; Endro Gunawan, a researcher at the Planning Bureau of the Agriculture Ministry; and Panji Winanteya Ruky, director of business transformation at PT Pupuk Indonesia.
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