Pupuk Indonesia Supports New Presidential Regulation for Fertilizer Industry Reform

Strategic Policy Shift in Fertilizer Subsidy Management

Pupuk Indonesia has welcomed the implementation of Presidential Regulation No. 113/2025, marking a significant development in the national fertilizer industry. The new regulation amends the previous Presidential Regulation No. 6/2025, focusing on improving the governance of subsidized fertilizer distribution. This policy change is designed to create a more efficient and sustainable fertilizer industry while strengthening national food security.

Key Features of the New Regulation

The regulation introduces several important changes to the fertilizer subsidy system:

1. Enhanced subsidy management framework
2. Improved supply chain efficiency
3. Modernization of the fertilizer industry
4. Better targeting of fertilizer subsidies

These changes are expected to address current challenges in the fertilizer distribution system and create a more robust industry structure.

Impact on Pupuk Indonesia's Transformation Agenda

The new regulation aligns with Pupuk Indonesia's ongoing transformation efforts. The company views this development as a strategic opportunity to accelerate its modernization plans and improve operational efficiency. The enhanced policy framework is likely to support the company's initiatives in digitalization, supply chain optimization, and production capacity enhancement.

Industry Implications

The implementation of Perpres 113/2025 is expected to have far-reaching implications for the national fertilizer industry. It will likely lead to:

1. Increased operational efficiency across fertilizer producers
2. Improved supply chain resilience
3. Better allocation of subsidized fertilizer
4. Enhanced industry competitiveness

As the regulation takes effect, industry players will need to adapt to the new policy requirements while leveraging the opportunities created by the reformed subsidy system.