October 22, 2025 | 02:51 pm
TEMPO.CO, Jakarta - The Minister of Agriculture, Amran Sulaiman, announced a 20 percent reduction in the maximum retail price (HET) of subsidized fertilizer. "Fertilizer prices have dropped by 20 percent, effective today," Amran stated while explaining the achievements of the Ministry of Agriculture in Jakarta on Wednesday, October 22, 2025.
Amran explained that the reduction in fertilizer prices was an instruction conveyed by President Prabowo Subianto in a limited cabinet meeting. He shared that Prabowo requested the announcement of the fertilizer price reduction today.
The cost reduction applies to several types of fertilizers, from urea to NPK. The price of urea fertilizer, which was originally sold at Rp2,250 per kilogram, is now Rp1,800 per kilogram, a reduction of Rp450. Meanwhile, the price of urea fertilizer per sack, previously valued at Rp112,500, has been reduced to Rp90,000.
As for the NPK Phonska fertilizer, the price has decreased from Rp2,300 per kilogram to Rp1,840 per kilogram. Similarly, a sack of NPK fertilizer is now priced at Rp92,000, down from the previous Rp115,000.
Here are the details of the subsidized fertilizer types with reduced prices:
Urea: Rp1,800 per kilogram
NPK Phonska: Rp1,840 per kilogram
NPK for cocoa: Rp2,640 per kilogram
Organic fertilizer: Rp640 per kilogram
Special ZA for sugar cane: Rp1,360 per kilogram
The reduction in the HET of fertilizer is stipulated in the Minister of Agriculture's Decision Number 117/Kpts./SR.310/M/10/2025 dated October 22, 2025. Amran ensures that the reduction in subsidized fertilizer prices does not burden the state budget. He stated that this reduction was made possible by reallocating funds from several existing Ministry of Agriculture budgets.
He also ensures that the quality of the fertilizer remains maintained despite the price reduction. "Secondly, the quantity increases. Thirdly, the price decreases. Fourthly, the additional state budget for subsidies does not increase," he summarized.
Amran stated that the reduction in commodity prices did not cause state-owned fertilizer company PT Pupuk Indonesia to incur losses. "On the contrary, PT Pupuk immediately profits," he claimed. He projected that PT Pupuk could reap additional profits amounting to Rp2.5 trillion next year.
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