Antara, Jakarta – The government has revoked the business permits of 2,039 kiosks, distributors, and retailers found guilty of violating subsidized fertilizer regulations, Agriculture Minister Andi Amran Sulaiman said on Monday. The move aims to protect farmers' interests nationwide.
"There have been many complaints from farmers across regions. After thorough checks, we found 2,039 problematic kiosks, distributors, and retailers. Starting today, their licenses are revoked," Amran said in a press conference in Jakarta.
The ministry's investigation found that the offenders had raised the prices of subsidized NPK and urea fertilizers by 18 to 20 percent above the government's retail price ceiling, causing substantial losses to farmers.
"Our team went undercover to verify these complaints. We found strong evidence of price markups, and all data are documented," Amran said.
The Agriculture Ministry estimated that these illegal practices caused around Rp 600 billion ($36.2 million) in annual losses. If left unchecked for a decade, the cumulative loss could reach Rp 6 trillion.
Amran said the crackdown aligns with President Prabowo Subianto's directive to eliminate manipulative practices in the agricultural supply chain, ensuring farmers, who serve as the backbone of national food security, are not disadvantaged.
The government assured that the permit revocations would not disrupt fertilizer distribution, as the ministry has recalculated supply to meet demand ahead of the peak planting season in December and January.
"Those who believe they've been wrongfully accused may submit clarifications to Pupuk Indonesia's board. But as of today, their permits remain revoked. This kind of malpractice must stop. It's been going on for far too long," Amran emphasized.
The ministry plans to replace the terminated distributors with new, more reliable partners, including encouraging Kopdes Merah Putih cooperatives to participate in fertilizer distribution to streamline logistics and ensure efficiency.
Amran added that the restructuring aims to improve subsidy targeting, boost farmer welfare, and increase agricultural productivity toward sustainable self-sufficiency.
With total fertilizer stock reaching 9.5 million tons, of which 5.9 million tons have already been distributed. The government is confident the new system will strengthen national food security.