Launching a More Accountable Fertilizer Distribution System
The Indonesian government has introduced a new mechanism for distributing subsidized fertilizers through a network of designated handover points, a strategic move aimed at creating a more accountable and targeted process. This initiative, which is part of Presidential Regulation (Perpres) Number 6 of 2025, is designed to combat a long-standing issue of leakage and ensure that these crucial agricultural resources reach farmers directly. According to Minister of Agriculture Andi Amran Sulaiman, the new system is “stricter and more measurable,” a move that demonstrates the government’s proactive presence and unwavering commitment to supporting the agricultural sector. The newly established handover points are a central component of this strategy, intended to serve as control hubs that strengthen oversight and accountability throughout the entire fertilizer distribution chain. By directly managing the flow of subsidized goods, the government aims to eliminate inefficiencies and guarantee that the benefits of the subsidy program are fully realized by the farming communities who rely on them.
Streamlining the Supply Chain for Farmer Benefit
This new regulation also introduces a streamlined process for appointing distributors, a significant change from the previous system. Previously, multiple parties were involved in the distribution process, which often led to a lack of accountability and coordination. The new policy, however, simplifies this by making state-owned fertilizer companies solely responsible for appointing distributors up to the designated handover points. These points can be registered retailers, farmer groups, fish farmer groups, or cooperatives, all of whom are now legally bound by formal agreements with the state-owned companies. As explained by the Director General of Agricultural Infrastructure and Facilities, Andi Nur Alam Syah, the ultimate goal of this refined process is to guarantee that fertilizers are available in the right quantity and quality, at the right time, and, most importantly, reach the intended farmers without delay. This is a critical step in boosting agricultural production and ensuring the nation’s long-term food security.
Ensuring Fair and Controlled Access for Farmers
To ensure fair and controlled access, the government has simplified the process for farmers to redeem their subsidized fertilizers. Under the new system, farmers must be officially listed in the e-RDKK (Electronic Definitive Group Needs Plan) data, which serves as a centralized and verified registry of eligibility. Once a farmer’s name is in the system, they can easily access their allotted fertilizer at a designated handover point or official kiosk by simply presenting their ID card or a farmer card. Director of Fertilizer and Pesticides Jekvy Hendra confirmed that as long as a farmer’s name is registered in the e-RDKK, they will be able to receive their subsidized fertilizer through this new, more secure system. This streamlined and transparent process is intended to eliminate corruption and misuse, ensuring that the government’s subsidies directly benefit the farmers who need them most and contribute to the growth and stability of the agricultural sector.
