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About Subsidized Fertilizer Scarcity

Scarcity of subsidized fertilizer is becoming major issues in Indonesia. Many farmers experiencing difficulties finding subsidized fertilizer such as Urea in the market. Scarcity enables contagious effect to food supply especially important agriculture product such as rice.

Agriculture is one of the strategic sector in Indonesia. Most of Indonesian villagers are farmers besides the fact that most of Indonesians eat rice almost every day. The needs of agricultural product is as important as the need of its supporting materials. One of the main supporting materials is fertilizer. In order to prevent farmers, government implemented subsidy regime into agricultural sector. Much of strategic components which support the development of agricultural sector are subsidized by government, including fertilizer. There are some regulation also which regulate the distribution of subsidized fertilizer in order to ensure subsidized fertilizer are well distributed to the farmers.

Here are several pointers I have learned from discussion with stakeholder and policy makers and it subject to revision:
  • There are wide gap between subsidized and nonsubsidized fertilizer price. It tends to manipulation. Speculators do hoarding and sell when price hikes. Government regulate price of subsidized fertilizer for Rp1200/kg far from about Rp6000/kg for nonsubsidized one.
  • Farmers are addicted to Urea type fertilizer. In some cases, they use more than recommended dosage to their crop fields.
  • supply of gas as input of fertilizer production are scare. It gives effect production of fertilizer itself.
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