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PublishedDec 5
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Indonesian Government Boosts Agricultural Sector with New Fertilizer Subsidy and Land Distribution Plans

AnalisaHub Editorial·December 5, 2025
Executive Summary
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Executive Summary

Key insights and market outlook

The Indonesian government is implementing multiple initiatives to support the agricultural sector, including fertilizer subsidy distribution of 6.5 million tons out of 9.55 million tons quota and plans to distribute land to poor farmers. The government has also reduced fertilizer prices by 20% and is working on revitalizing old fertilizer factories to improve production efficiency. These measures aim to empower farmers and enhance agricultural productivity.

Full Analysis
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Deep Dive Analysis

Indonesian Government Launches Comprehensive Agricultural Support Measures

Fertilizer Subsidy Distribution Accelerated

The Indonesian government has made significant progress in distributing fertilizer subsidies to farmers, with 6.5 million tons out of the 9.55 million tons quota already delivered 4

. PT Pupuk Indonesia is pushing to distribute an additional 2 million tons by year-end, aiming to reach 8.2-8.5 million tons total for 2025 4. The distribution process has been streamlined through a new system where farmers can purchase subsidized fertilizer at designated kiosks by showing their KTP 2.

Land Distribution Plans for Poor Farmers

Coordinating Minister for People's Welfare, Muhaimin Iskandar, revealed plans to distribute land to poor farmers as part of the government's empowerment efforts 1

. The initiative targets farmers in the lowest income deciles (1 and 2) and is currently being studied at the ministerial level. This move is seen as a significant step in providing farmers with the means of production and improving their livelihoods.

Fertilizer Price Reduction and Production Efficiency

In a related development, the government has reduced fertilizer prices by 20% as part of its subsidy program 2

. To ensure long-term sustainability, the government is also focusing on revitalizing old fertilizer factories. PT Pupuk Indonesia has identified seven projects to be completed by 2029, aimed at improving production efficiency and reducing energy consumption 3.

Revitalization of Aging Fertilizer Plants

Minister Zulkifli Hasan emphasized the need to revitalize aging fertilizer plants, such as the 50-year-old Pupuk Kujang factory 5

. The government believes that modernizing these facilities will significantly improve production efficiency and enable the company to build new plants annually. The efficiency gains are expected to support the subsidy program while enhancing overall production capacity.

Original Sources

Story Info

Published
1 month ago
Read Time
15 min
Sources
5 verified

Topics Covered

Fertilizer SubsidyAgricultural SupportLand DistributionProduction Efficiency

Key Events

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Fertilizer Subsidy Distribution

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Land Distribution Plan

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Fertilizer Price Reduction

Timeline from 5 verified sources