Fertilizers Mentioned in Vice Presidential Debate: What's the Reference Price?

The availability of fertilizer for farmers has become a focal point for the vice-presidential candidates.

This was discussed by the vice-presidential candidates during the fourth series of the 2024 Presidential Debate themed on sustainable development, natural resources, the environment, energy, food, agrarian affairs, indigenous communities, and villages at the Jakarta Convention Center (JCC), Jakarta, on Sunday (21/1/2024).

Vice-presidential candidate number 1, Muhaimin Iskandar, also known as Cak Imin, voiced the need for agrarian reform in the interest of the people and the provision of affordable fertilizer for farmers.

Meanwhile, vice-presidential candidate number 2, Gibran Rakabuming Raka, stated that his side would strive to improve farmers' welfare by ensuring the easy and affordable availability of fertilizer and seeds to maintain food stability.

Furthermore, vice-presidential candidate number 3, Mahfud MD, expressed concern that difficult access to subsidized fertilizer could lead to a decrease in the number of people willing to be farmers.

Given this sharp focus, what is the actual price of subsidized fertilizer set by the government?

Through the Decree of the Minister of Agriculture (Kepmentan) Number 734/2022, the government has determined the highest retail price (HET) of fertilizer for 2023.

Citing the Ombudsman RI website, subsidized urea fertilizer is priced at Rp2,250 per kilogram (kg). Meanwhile, NPK fertilizer is Rp2,300 per kg. Finally, NPK fertilizer with a special cocoa formula is set at Rp3,300 per kg.

The criteria for recipients of subsidized fertilizer refer to the Regulation of the Minister of Agriculture No. 10 of 2022 concerning the Procedure for Determining the Allocation and Highest Retail Price of Subsidized Fertilizers in the Agricultural Sector.

According to this regulation, subsidized fertilizer is intended for farmers engaged in farming in the following sub-sectors:

(a) Food crops with commodities of rice, corn, and soybeans.
(b) Horticulture with commodities of chilies, shallots, garlic, and/or
(c) Plantations with commodities of coffee, people's sugarcane, and cocoa. The land area cultivated by farmers is a maximum of 2 (two) hectares per planting season, prioritizing small farmers cultivating a maximum of 0.5 hectares.

(See also: Check Data: Mahfud Says Fertilizer Subsidies Increased, What's the Data?)