Heru Andriyanto & Prisma Ardianto, Jakarta – Vice-presidential candidate Mohammad Mahfud MD raised concerns about the continuous increase in fertilizer subsidies by the government while the landscape of agriculture-based businesses is shrinking, as he criticized the government during a debate in Jakarta on Sunday evening.

"The number of farmers is decreasing, available agricultural land is on the decline, yet the value of fertilizer subsidies keeps rising every year. Something doesn't add up here," Mahfud said.

Data from the Central Statistics Agency (BPS) indicates a decrease in the number of farmers from 31.71 million in 2022 to 29.3 million in 2023. However, the number of certified agriculture-based companies saw a notable increase of 35.54 percent to 5,705 during the same period.

Moreover, around 42.39 percent of Indonesian farmers are predominantly senior citizens, aged between 43 and 58 years old.

Mahfud's statement about the constant increase in fertilizer subsidies is not entirely accurate.

In 2019, the government allocated Rp 29.5 trillion ($1.9 billion) for fertilizer subsidies and the amount rose to Rp 34.2 trillion in 2020 and to Rp 50.3 trillion in 2021. However, the allocation for fertilizer subsidy has decreased slightly to Rp 49.6 trillion in 2022 and Rp 49.5 trillion in 2023.

President Joko Widodo recently announced a record-high fertilizer subsidy for 2024, amounting to Rp 64 trillion.

During the debate, Mahfud also criticized the government for frequently implementing misguided policies that undermine the interests of the general public in favor of investments and industrialization.

According to Mahfud, the constitution mandates the optimal utilization of natural resources for the benefit of the Indonesian people. However, he argued that government policies often prioritize investor benefits, showing little regard for environmental damage resulting from the exploitation of natural resources.

"I can hardly see the government taking necessary measures to preserve the environment," said Mahfud, who holds the position of senior minister in the current cabinet.

Source: https://jakartaglobe.id/business/mahfud-questions-rising-fertilizer-subsidie