InfoSAWIT, JAKARTA – Indonesia has officially issued Presidential Regulation (Perpres) No. 113/2025, marking a major step in reforming the country’s fertilizer subsidy framework and revitalizing the domestic fertilizer industry.
The regulation revises Perpres No. 6/2025 and signals a strategic transition from output-based subsidies to a more sustainable input-based subsidy model. The policy direction was highlighted during a discussion hosted by the Forum of Agricultural Journalists (Forwatan) at the Ministry of Agriculture on Friday (19/12/2025).
According to Yustina Retno Widiati from the Directorate General of Agricultural Infrastructure and Facilities, the new regulation introduces key changes, including allowing exports of non-subsidized fertilizer products.
“Previously, fertilizer exports were prohibited. This revision provides positive incentives for domestic fertilizer producers,” she said.
The government has allocated 9.5 million tons of subsidized fertilizer for agriculture and 297,000 tons for fisheries in 2026, supported by a Rp46 trillion subsidy budget. Recipient data currently covers more than 14 million farmers nationwide.
Farmers’ organizations welcomed the reform. The Kontak Tani Nelayan Andalan (KTNA) reported minimal distribution issues, while the Himpunan Kerukunan Tani Indonesia (HKTI) described the regulation as a “fertilizer trade revolution.”
The government expects the reform to improve efficiency, restore fertilizer factory performance by 2029, and strengthen Indonesia’s long-term food security through a more balanced, industry-friendly subsidy system. (T2)
