Jokowi-Era Fertilizer Subsidy Budget Higher Than During SBY's Presidency

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Adi Ahdiat 22/05/2023 12:50 WIB

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Based on data from the Central Government Financial Report (LKPP), President Jokowi disbursed a larger fertilizer subsidy budget than President SBY.

Indonesian Fertilizer Subsidy Budget (2005-2023)

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Jokowi-Era Fertilizer Subsidy Budget Higher Than During SBY's Presidency

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Indonesian Fertilizer Subsidy Budget (2005-2023)

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Based on the Central Government Financial Report (LKPP), President Joko Widodo (Jokowi) disbursed a larger fertilizer subsidy budget than President Susilo Bambang Yudhoyono (SBY).

During SBY's presidency (2005-2014), the realization of national fertilizer subsidy spending ranged from Rp1 trillion to Rp21 trillion per year, as detailed in the graph. On average, fertilizer subsidies during SBY's era reached approximately Rp13.2 trillion per year.

Then, during Jokowi's presidency (2015-2023), the figure increased to between Rp25 trillion and Rp34 trillion per year. On average, fertilizer subsidy spending during Jokowi's era reached Rp29.3 trillion per year.

President Jokowi's fertilizer subsidy spending was higher than SBY's, although the movement of fertilizer prices during their respective administrations was relatively similar.

According to World Bank data, during SBY's presidency (2005-2014), the global price of urea fertilizer fluctuated from a minimum of US$205 per ton to a maximum of US$500 per ton, with an average of US$318.3 per ton.

Meanwhile, during Jokowi's presidency (2015-2022), the global price of urea fertilizer fluctuated between US$206 per ton and US$634 per ton, with an average of US$313.9 per ton.

Although the Jokowi administration disbursed a larger fertilizer subsidy, Yeka Hendra Fatika, a member of the Indonesian Ombudsman, assessed that the results have not been optimal.

"The budget for subsidized fertilizer is around Rp330 trillion in 10 years, but there is no impact on increased agricultural production," said Yeka in his article entitled "Findings and Recommendations of the Ombudsman for the Improvement of Subsidized Fertilizer Governance" on the official Ombudsman RI website (2/21/2023).

According to the Ombudsman's study, there are also several potential instances of maladministration in the distribution of subsidized fertilizer, such as the lack of detail in the criteria for subsidized fertilizer recipients, inaccurate recipient data, a lack of transparency in the appointment of distributors, and ineffective supervision.

He also suggested that the government evaluate the fertilizer subsidy policy, from the distribution mechanism to supervision.

"In any case, the fertilizer subsidy policy is a form of government presence in assisting farmers, where fertilizer is one of the cost components in farming," said Yeka.

"It is very important to optimize the distribution of subsidized fertilizer to farmers, so that it can encourage the optimization of agricultural yields, maintain food security, and improve the welfare of Indonesian farmers," he continued.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Jokowi-Era Fertilizer Subsidy Budget Higher Than During SBY's Presidency

Jokowi-Era Fertilizer Subsidy Budget Higher Than During SBY's Presidency

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Jokowi-Era Fertilizer Subsidy Budget Higher Than During SBY's Presidency

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