Indonesian Government Cuts Subsidized Fertilizer Prices by 20%, Marking a New Era for Farmers

PALMOILMAGAZINE, JAKARTA – The Indonesian government has officially reduced the price of subsidized fertilizers by 20 percent starting Wednesday (Oct 22, 2025), marking a major breakthrough in the second year of President Prabowo Subianto’s administration.

Minister of Agriculture and Head of the National Food Agency (Bapanas), Andi Amran Sulaiman, called the move a historic milestone in the nation’s fertilizer policy. For decades, fertilizer prices tended to rise every one to two years, but this time, they have been successfully lowered thanks to President Prabowo’s budget efficiency initiative.

“This is great news. Fertilizer prices are down by 20 percent, effective today. In our history, this has never happened before,” Amran said during a press conference in Jakarta.

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The price cut applies to two major types of fertilizer: Urea and NPK.

• Urea: reduced from IDR2,250/kg to IDR1,800/kg, or from IDR112,500 to IDR90,000 per 50-kg sack.
• NPK: reduced from IDR2,300/kg to IDR1,840/kg, or from IDR115,000 to IDR92,000 per 50-kg sack.

This policy takes effect nationwide starting today

According to Amran, the fertilizer price reduction will directly improve farmers’ exchange rates (NTP), lower production costs, and increase farmers’ welfare. The government is confident that this measure will boost national agricultural productivity in the coming years.

“Farmers’ exchange rates will rise, their welfare will improve, production costs will fall, and output will increase in the years ahead,” he said, as quoted by Palmoilmagazine.com from Antara.

Amran emphasized that the policy does not involve additional funding from the state budget (APBN); it is the result of industrial efficiency and better fertilizer distribution management.

He also warned that there will be zero tolerance for any party that attempts to sell fertilizers above the regulated prices. Distributors and retailers found violating the rule will immediately lose their licenses and face legal action.

“If anyone raises the prices, we’ll revoke their license that very day. There is no room for exploiting Indonesian farmers,” Amran stressed. (P3)