Indonesia Takes Strong Action Against Fertilizer Price Violators

Strict Enforcement of Subsidized Fertilizer Prices

The Indonesian Ministry of Agriculture has taken decisive action against 90 kiosks operating in violation of price regulations by selling subsidized fertilizer above the prescribed retail price (HET). This enforcement follows a recent 20% reduction in HET, implemented through Ministerial Decree No. 1117/Kpts./SR.310/M/10/2025, which adjusted the pricing structure for subsidized fertilizers for the agricultural sector in 2025.

Background and Rationale

The decision to revoke these business licenses was made during a press conference at the Ministry of Agriculture in Jakarta. Minister Andi Amran Sulaiman emphasized that the licenses were revoked due to these kiosks selling subsidized fertilizer at prices exceeding the mandated HET. The Minister stressed that such practices harm farmers and the agricultural community, necessitating immediate administrative action.

Regulatory Framework and Enforcement

The HET reduction was formalized through a ministerial decree that modified previous pricing guidelines set in September 2025. This regulatory change demonstrates the government's active approach to managing agricultural input costs. The enforcement action was supported by complaints received through the 'Lapor Pak Amran' reporting channel, which has proven effective in identifying non-compliant businesses.

Impact on Agricultural Sector

This strict enforcement sends a strong signal to distributors and retailers about the importance of compliance with price regulations. By protecting the subsidized fertilizer program from abuse, the government aims to ensure that farmers receive the intended benefits of these subsidies. The action is expected to maintain price stability in the agricultural sector and support farmers' access to essential inputs at regulated prices.