Jakarta. Pupuk Indonesia said Monday that it would make sure that the price of the subsidized fertilizers sold at kiosks would not exceed the price cap that the government had set. 

The state-run fertilizer maker said that it had tightened supervision on the subsidized fertilizers. They would also impose sanctions in case there is anyone who sells beyond the price cap. 

Pupuk Indonesia also pledged support for the government’s eight-point mission Asta Cita which includes making Indonesia self-sufficient in food. 

“Selling subsidized fertilizers above the price cap is a serious violation and can be subject to criminal sanctions. We are committed to maintaining fertilizer distribution so that it remains affordable for farmers,” Pupuk Indonesia’s marketing director Tri Wahyudi Saleh was quoted as saying in a recent press statement. 

The government has set the price cap for subsidized fertilizers at the kiosk or retailer level at Rp 2,250 per kilogram for urea, NPK phonska (Rp 2,300 per kilogram), NPK for Cocoa at Rp 3,300 per kilogram, and organic fertilizer at Rp 800 per kilogram.

Sanctions for those who violate the price cap include imprisonment of up to 20 years and a maximum fine of Rp 1 billion. Pupuk Indonesia will have kiosks that violate the cap to return the price differences to the farmers. They also have to set up banners stating they will sell subsidized fertilizers according to the price cap. 

"If violations are repeated, we will not hesitate to terminate cooperation with the kiosks or distributors involved. This is an important step to protect farmers from fraudulent practices," Tri Wahyudi said. 

Pupuk Indonesia plans to continue to be in talks with the farmers, kiosks, and related parties regarding the importance of complying with the price cap. The kiosks must also set up banners that show the hotline for farmers to reach out to in case they find fertilizers being sold beyond the price limit. Pupuk Indonesia also holds regular discussions, namely the “PI Menyapa” and “Rembuk Tani”, with the relevant stakeholders. Farmers can also contact 0800 100 8001 or WhatsApp at 0811 9918 001.

However, additional transportation costs might cause the price to rise. But the kiosks must first make an agreement with the farmers in case there are price changes.

"With tighter supervision, we want to ensure that subsidized fertilizers really reach the farmers who need them. This step is crucial to maintain the productivity of the agricultural sector and support Indonesia’s goal of achieving food security," Tri Wahyudi said.

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