PALMOILMAGAZINE, JAKARTA – The Indonesian Ombudsman has expressed concern over the low uptake of subsidized fertilizer as of August 9, 2024. Out of the 9.55 million tons allocated, only 4.3 million tons, or approximately 41.95%, have been purchased.
Yeka Hendra Fatika from the Ombudsman noted that this shortfall could hinder the Ministry of Agriculture’s targets to boost national food production. He attributed the low absorption rates partly to delays in the publication of allocation decisions by local government heads, which impacted the timely purchase of subsidized fertilizers. The announcement of the additional 9.55 million tons only reached farmers and smallholders in June 2024, contributing to the delay in procurement.
Moreover, concerns among distributors and subsidized fertilizer retailers have further limited availability. These stakeholders have faced significant challenges, including an increase in unsold stock, with 19,000 tons expected to remain unsold in the first half of 2024, compared to a target of 4,000 tons for the same period in 2023.
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Ombudsman also noted, about 954.000 farmers/smallholders that got allocation in the subsidized fertilizers, did not pay in the past three years. This was one factor why subsidized fertilizers were less to be purchased.
Yeka Hendra Fatika said that the government still has four months to go to increase subsidized fertilizer distribution. It needs to substitute technical points and ways to solve the verification issues that became the main issues to pay. “One is by having consideration about ID use as the official identity to ease the smallholders/farmers to pay it all, substituting the digital signature that always becomes an issue,” Yeka said as Palmoilmagazine.com quoted from one official information, Wednesday (28/8/2024).
Ombudsman also encouraged that the smallholders would get representative to pay subsidized fertilizers to the groups/families with clear payment evidence or simple procuration with no additional payment.
It means the ways to increase subsidized fertilizer distribution should be effective and efficient to confirm the optimal supports for agricultural productivity nationally, just like the related parties’ aspirations. (P2)
