Politics · Indonesia · 1 hr ago
Indonesia Cuts Subsidised Fertiliser Prices by 20%
Indonesia’s government cut prices for all subsidised fertiliser by 20%, with the change taking effect on 22 October 2025.
The policy covers farmers across Indonesia, including users of urea, NPK, sugar-cane fertiliser and organic fertiliser.
Lower prices are intended to reduce farm costs, while the government says it is also ensuring supplies are available when farmers need them.
To make fertiliser easier to obtain, the government cut 145 rules on subsidised fertiliser distribution.
It also revoked 2,231 distributor and retailer permits found to have problems in the first half of 2026, while continuing to strengthen a digital system for recording farmers’ needs.
The government says cleaner distribution and easier access can support production and farmers’ incomes; it has not specified further steps in the information provided.
Indonesia reduced the maximum retail prices of all types of subsidised fertiliser by up to 20%.
The price changes took effect on 22 October 2025 under a decree by the agriculture minister.
The government says the cuts are intended to lower farmers’ production costs and improve access to fertiliser.
The policy is intended to benefit more than 155 million people, including farmers and their families.
The government also says it has cut 145 regulations on fertiliser distribution and is working to improve oversight.
- Who
- The Indonesian government. The policy is intended to benefit farmers and their families.
- What
- It cut maximum retail prices for subsidised fertiliser by up to 20%.
- When
- The price changes took effect on 22 October 2025.
- Where
- Indonesia.
- Why
- To reduce farmers’ production costs and make subsidised fertiliser easier to access.
This story does not have two clearly opposing sides.
The subsidised fertiliser price changes took effect under an agriculture minister’s decree.
The Agriculture Ministry reported that 2,231 permits for problematic subsidised fertiliser retailers and distributors had been revoked.
Detik published an article describing the price cuts and other measures to improve fertiliser distribution.
- Price reduction
- Up to 20%
- Effective date
- 22 October 2025
- Urea price
- Rp 2,250 to Rp 1,800 per kilogram
- NPK price
- Rp 2,300 to Rp 1,840 per kilogram
- Intended beneficiaries
- More than 155 million people
- Regulations cut
- 145
What people are saying
We have successfully reduced fertiliser prices by 20 percent. This is the first time in the history of the Unitary State of the Republic of Indonesia. For the first time, fertiliser prices can be lowered for the people, while at the same time the price falls and the volume of fertiliser available to our people increases.