Jakarta. President Prabowo Subianto officially slashed fertilizer prices by 20 percent starting on Wednesday as Indonesia pursued food self-sufficiency.

According to Agricultural Minister Andi Amran Sulaiman, the move came as a way to lift farmers’ burden and boost the national food production. 

The latest policy has cut the price of urea fertilizer from Rp 2,250 ($0.14) to Rp 1,800 ($0.11) per kilogram. In other words, a sack of urea fertilizer now only costs Rp 90,000 ($5.42), down from Rp 112,500 ($6.77). NPK fertilizer’s prices have fallen from Rp 2,300 ($0.14) to Rp 1,840 ($0.11) per kilogram. Each sack now has a price tag of Rp 92,000 ($5.54), down from Rp 115,000 ($6.92). The label NPK refers to the nitrogen, phosphorus, and potassium content. 

“President Prabowo Subianto has ordered a 20 percent price reduction for fertilizers as of today. This is good news as the Prabowo government enters its second year,” Amran told reporters in Jakarta on Wednesday.

“This has never happened in history. ... As many as 160 million Indonesian farmers have been waiting for this,” Amran stated.

The major agricultural sector move, however, would not add burden to the state spending. Amran said that Indonesia managed to cut the fertilizer price through production efficiencies and improved management. The government will also impose sanctions on anyone who tries to sell the fertilizers at a higher price.

“Whoever does that will have their permit revoked and face prosecution,” Amran said.