Petrokimia Gresik, an Agroindustrial Solutions company and a member of the Pupuk Indonesia holding company, disbursed compensation funds totaling Rp120 billion for the reduction in the Highest Retail Price (HET) for subsidized fertilizer. This measure was taken ahead of Eid al-Fitr as part of an effort to ensure smooth distribution of subsidized fertilizer and strengthen farmers' purchasing power during the planting season.
The initial disbursement began with Distribution Business Actors (PUD) and Fertilizer Recipients at Delivery Points (PPTS) in Boyolali and Wonogiri, Central Java.
Petrokimia Gresik President Director Daconi Khotob expressed his appreciation to the PUD and PPTS for supporting the implementation of the government's policy to reduce the Highest Retail Price (HET) for subsidized fertilizer, which began on October 22, 2025.
"The reduction in the Highest Retail Price (HET) for subsidized fertilizer has a direct impact on farmers because it reduces agricultural production costs. With more efficient costs, farmers' purchasing power is strengthened and agricultural productivity can continue to increase," said Daconi.
He added that the successful implementation of this policy is inseparable from the support of fertilizer distribution partners in the field.
"A good policy must of course be implemented effectively in the field. Support from the Public Works and Agricultural Service Agencies (PUD) and Public Works Tax Agencies (PPTs) is crucial to ensure that subsidized fertilizer is distributed appropriately, ensuring that farmers truly benefit," he added.
This compensation will be distributed in two phases. The first phase will be disbursed after the initial application documents are declared complete, while the second phase will be disbursed after the field verification process by PT Pupuk Indonesia (Persero) is complete.
In total, compensation will be provided to 782 PUDs and 17,887 PTPs. Petrokimia Gresik has disbursed the first phase of compensation to PUD CV Lufi Jaya and 42 PTPs in Boyolali and Wonogiri, totaling Rp123 million.
For your information, the policy of reducing the highest retail price (HET) for subsidized fertilizer, which took effect on October 22, 2025, has reduced the prices of various types of fertilizer by approximately 20 percent.
The highest retail price (HET) for urea fertilizer has dropped from IDR 2,250 per kilogram to IDR 1,800 per kilogram, or from IDR 112,500 per 50-kilogram sack to IDR 90,000. The highest retail price (HET) for NPK fertilizer has dropped from IDR 2,300 per kilogram to IDR 1,840 per kilogram, or from IDR 115,000 per sack to
IDR 92,000. The highest retail price (HET) for NPK fertilizer specifically for cocoa has dropped from IDR 3,300 per kilogram to IDR 2,640 per kilogram, or from IDR 165,000 per sack to IDR 132,000.
Furthermore, the highest retail price (HET) for ZA fertilizer, newly included in the subsidized fertilizer scheme, has also dropped from IDR 1,700 per kilogram to IDR 1,360 per kilogram. The price of this fertilizer for sugarcane, previously IDR 85,000 per 50-kilogram sack, has now dropped to IDR 68,000. Finally, the highest retail price (HET) for organic fertilizer has been reduced from IDR 800 per kilogram to IDR 640 per kilogram, or from IDR 32,000 per 40-kilogram sack to IDR 25,600.
"Fertilizer is a primary need in agricultural cultivation. This reduction in the HET is significant in helping reduce farmers' production costs. This policy is also part of the government's efforts to achieve national food self-sufficiency, as envisioned by President Prabowo Subianto in his Asta Cita (Asta Cita)," Daconi concluded.
Attachments
| File | Type | Size | Download |
|---|---|---|---|
| 17 SP Kompensasi Penurunan HET Pupuk Bersubsidi FINAL docx | 87 KB | Download |
