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Flawed distribution of subsidized fertilizers in Lombok revealed

Panca Nugraha (The Jakarta Post)
Mataram, West Nusa Tenggara
Fri, August 26, 2016

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Flawed distribution of subsidized fertilizers in Lombok revealed A worker moves bags of subsidized fertilizer to be distributed to retailers. (Tempo/-)

West Nusa Tenggara (NTB) Police have revealed alleged irregularities in the distribution of subsidized fertilizers in East Lombok.

“From two locations in Labuhan Haji district, East Lombok, we confiscated 14.5 tons of subsidized fertilizers. It is suspected that those fertilizers were being sold at non-subsidized prices to farmers,” said Adj. Sr. Comr. Boyke Karel Watimena of the NTB Police’s special crimes directorate in Mataram on Wednesday.  

The fertilizers confiscated comprised three types, namely Urea, ZA and NPK, police said.

Boyke said the case began from reports by East Lombok farmers who complained that in the regency, subsidized fertilizers were more expensive than the ceiling price set by the government.

Following up the case, police allegedly found irregularities in subsidized fertilizer distribution, which involved two stores in Labuhan Haji district.

Boyke further said producers should distribute subsidized fertilizers to designated agents, which would channel them to farming associations.

“It is suspected that the retailers did not channel the subsidized fertilizers to farmers but sold them to stores, which resold them at non-subsidy prices,” he said.

Police found the price of Urea to be Rp 220,000 (US$16.58) per 100 kilograms while Za and NPK were Rp 160,000 and Rp 250,000 respectively, all above ceiling prices.

“After we investigated the stores, [we discovered] their owners did hold permits to distribute subsidized fertilizers,” said Boyke. The police were still investigating the stores’ owner, identified as only DY, and farmers as witnesses, he added.

If guilty, DY can be charged of violating Law No.7/2014 on trade and Trade Minister Regulation No.15/2013 on the procurement and distribution of subsidized fertilizers. (ebf)

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