The Indonesian Ministry of Agriculture plans to build seven new fertilizer plants by 2029, with five targeted for completion within that year. The total investment is estimated at IDR 50 trillion (US$3 billion). This initiative supports President Prabowo Subianto’s directive to modernize the agricultural sector and boost national self-sufficiency in fertilizer production. Minister Amran Sulaiman stated that the new facilities will reduce production costs by over 25% and lower reliance on imported raw materials. He also noted that older plants operate inefficiently, consuming around 43% gas input, while newer ones require nearly half that amount. In parallel, the government has reduced the maximum retail price (HET) of subsidized fertilizers by 20%, effective October 22, 2025, without increasing state subsidies. This was achieved through industrial efficiency and improved distribution management. The new prices, outlined in Ministerial Decree No. 1117/Kpts./SR.310/M/10/2025, apply to all subsidized fertilizer types: Urea (from IDR 2,250/kg to IDR 1,800/kg), NPK (from IDR 2,300/kg to IDR 1,840/kg), NPK for cocoa (from IDR 3,300/kg to IDR 2,640/kg), ZA for sugarcane (from IDR 1,700/kg to IDR 1,360/kg), and organic fertilizer (from IDR 800/kg to IDR 640/kg). The policy is expected to benefit over 155 million Indonesians, especially farmers and their families.Source: https://indonesiabusinesspost.com/5523/markets-and-finance/indonesia-to-build-seven-fertilizer-plants-by-2029-cuts-retail-prices-by-20-percent (ICE GIACARTA)

Fonte notizia: Indonesia Business Post, 27 October 2025