Minister of Agriculture Andi Amran Sulaiman stated that this policy was a direct directive from the President, who had anticipated global uncertainty from the outset. “From the beginning, President Prabowo predicted that the world would enter a phase full of uncertainty,” he said.
He emphasized that this step was not merely a short-term response, but part of a long-term strategy.
“His directive was clear: we were asked not to wait for a crisis to occur, but to first prepare anticipatory measures through policy,” he added.
The policy of reducing subsidized fertilizer prices has been implemented since 2025, with a total allocation of 9.8 million tons worth IDR 46.87 trillion. This policy is crucial given the current global situation under pressure from geopolitical conflicts, including tensions between Israel and Iran, which have also involved the United States since late February. As a result, strategic trade routes such as the Strait of Hormuz have been disrupted, impacting the distribution of essential commodities, including fertilizer.
Furthermore, China’s decision to halt nitrogen fertilizer exports has exacerbated global market conditions. As a result, global urea prices have experienced a significant spike of up to 40 percent. According to Trading Economics data, urea prices are currently around US$585 per ton and reached US$720 per ton in mid-April 2026.
In response to this situation, the Indonesian government is striving to ensure the continued availability of fertilizer for farmers. Deputy Minister of Transmigration Viva Yoga Mauladi believes the fertilizer subsidy policy remains a crucial instrument in supporting national food self-sufficiency.
“The government’s move to continue distributing subsidized fertilizer to farmers is the right policy to achieve food self-sufficiency,” he said.
He explained that the fertilizer distribution system is implemented in stages through the Definitive Group Needs Plan (RDKK) mechanism, which is submitted by farmers, verified by the government, and forwarded to the Ministry of Agriculture. Furthermore, PT Pupuk Indonesia (Persero) is responsible for the provision and distribution of fertilizer to farmers.
Furthermore, the government has made major improvements to fertilizer distribution governance by eliminating 145 regulations through a Presidential Instruction to expedite the distribution process and reduce bureaucratic red tape.
Pupuk Indonesia’s Director of Operations, Dwi Satriyo Annurogo, stated that his company continues to optimize production to meet national needs.
“We are currently operating our factories at maximum capacity and are preparing expansion plans to meet future subsidized fertilizer needs,” he said.
He also confirmed that the policy of reducing the Highest Retail Price for fertilizer by 20 percent will remain in effect despite uncertain global economic conditions. As of April 29, 2026, subsidized fertilizer distribution had reached 3.15 million tons, a 38 percent increase compared to the same period the previous year.
With these policies, the government hopes to maintain the stability of the agricultural sector while strengthening national food security amidst evolving global dynamics.