Fertilizer Subsidy Allocation Reduced by 13%; Rp 25.3 Trillion for 2022

The Indonesian government allocated Rp 25.3 trillion (approximately USD 1.7 billion) in the 2022 State Budget (APBN) for fertilizer subsidies. This amount constitutes 34.7% of the total non-energy subsidies this year, which reach Rp 72.9 trillion (approximately USD 4.9 billion). However, this year's fertilizer subsidy budget is down 13.06% from the 2021 outlook of Rp 29.1 trillion (approximately USD 1.9 billion).

Fertilizer subsidy funds have fluctuated. Realized spending on fertilizer subsidies amounted to Rp 26.85 trillion (approximately USD 1.8 billion) in 2016 and steadily increased to Rp 34.31 trillion (approximately USD 2.3 billion) in 2019. However, it decreased to Rp 31.1 trillion (approximately USD 2.1 billion) in 2020.

To ensure more targeted distribution, the government is conducting verification and validation of fertilizer subsidy recipients, aligning them with National Identity Numbers (NIK) through the electronic definitive needs plan for groups (e-RDKK) system. The government is also expanding the subsidized fertilizer redemption mechanism through the Kartu Tani (Farmer Card).

Attorney General ST Burhanuddin has urged all his staff to scrutinize every process of subsidized fertilizer distribution to ensure it reaches its intended targets. Burhanuddin also instructed his regional offices to immediately take action against any parties attempting to manipulate the subsidized fertilizer system.

The substantial fertilizer subsidy budget necessitates stricter and more transparent oversight to ensure that state funds are used effectively and reach the farmers who need them. This is crucial for maintaining price stability and purchasing power, particularly for the poor and vulnerable segments of the population susceptible to economic shocks.