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Tighten Supervision Of Subsidized Fertilizer, Pupuk Indonesia: Violations Of HET Face Criminal Charges
Tuesday, 21 Jan 2025
PT Pupuk Indonesia (Persero) has reaffirmed its commitment to ensure the distribution of subsidized fertilizers follows regulations. By tightening supervision and imposing strict penalties, the company aims to uphold the Highest Retail Price (HET) set by the government to protect farmers' interests.
Tri Wahyudi Saleh, the Marketing Director of Pupuk Indonesia, emphasized that the company will not tolerate violations that harm farmers. "Selling subsidized fertilizers above the HET is a serious offense and can lead to criminal penalties. We are dedicated to keeping fertilizer distribution affordable for farmers as mandated by law," said Tri Wahyudi on Saturday, January 18, 2025.
The HET for subsidized fertilizers for 2025 is outlined in the Minister of Agriculture's Decree No. 644/kPTS/SR.310/M/11/2024. According to this decree, the HET for fertilizers at kiosks or retailers is set at Rp2,250/kg for Urea, Rp2,300/kg for NPK Phonska, Rp3,300/kg for NPK for Cocoa, and Rp800/kg for Organic Fertilizer.
Pupuk Indonesia reminds all kiosk partners that violations of the HET for subsidized fertilizers can lead to criminal charges under Article 2 of Law No. 20 of 2001. Penalties include imprisonment for up to 20 years and fines of up to Rp1 billion.
For kiosks found violating the rules, Pupuk Indonesia will require them to refund the price difference to farmers harmed by sales above the HET and to display a commitment banner stating they will sell subsidized fertilizers according to the applicable HET.
"If violations occur repeatedly, we will not hesitate to terminate our partnership with the kiosks or distributors involved. This is a crucial step to protect farmers from fraudulent practices," Tri Wahyudi asserted.
As a preventive measure, Pupuk Indonesia continues to enhance education for farmers, kiosks, and related parties about the importance of adhering to the HET. It is important to record all details on the receipt if there is an increase in the price of fertilizer agreed upon between the kiosk and the farmers, or agreements on shipping costs, post-harvest fertilizer payments, and other agreements that result in the fertilizer redemption price being higher than the HET.
Furthermore, Pupuk Indonesia requires all kiosk partners to display banners with contact numbers for farmers to report any kiosks selling subsidized fertilizer above the HET.
"We encourage anyone who knows of violations to contact the local AE or AAE sales staff immediately. We will ensure that a warning is given to the distributor or kiosk involved," said Tri Wahyudi.
Pupuk Indonesia also regularly holds PI Menyapa events, which serve as a communication and coordination platform with stakeholders in the field. Rembuk Tani events are organized in various regions to discuss issues, challenges, and opportunities in the agricultural sector. In these forums, farmers can raise their concerns, including issues related to HET, directly with Pupuk Indonesia stakeholders.
The company encourages the public to report suspected violations in the distribution of subsidized fertilizer. Reports can be made through Pupuk Indonesia's field team or by contacting the company's official service center. Farmers can access customer service through a toll-free number at 0800 100 8001 or via WhatsApp at 0811 9918 001.
However, it is important to note that sometimes transportation or shipping costs for subsidized fertilizer may lead to the perception that the HET has increased. Typically, this is an agreement made between the kiosk and the farmers.
"With stricter supervision, we want to ensure that subsidized fertilizer truly reaches the farmers who need it."
