indonesia Eyes state Fund to Revamp Fertilizer Industry, Reduce Import Reliance
Jakarta, Indonesia – The Indonesian House of Representatives is pushing for state asset fund Danantara to spearhead a major overhaul of the country’s subsidized fertilizer system. The proposal, discussed during a joint working meeting on Thursday, centers on strategic investment in domestic fertilizer factories to substantially reduce Indonesia’s dependence on costly imports.
Currently, a staggering 60% of components used in domestic fertilizer production are imported, a situation lawmakers say is inflating costs, disrupting supply chains, and ultimately burdening both farmers and the national budget.
“Involving Danantara is a critical step toward achieving long-term production efficiency and affordability,” stated Herman Khaeron, deputy chairman of the House’s State Finance Accountability Committee (BAKN), following the meeting at the Senayan legislative Complex. he emphasized the urgent need for investment focused on “building or revitalizing fertilizer factories along with other investments.”
The move aims to create a more resilient and affordable fertilizer distribution chain by lessening reliance on expensive imports. According to Khaeron, reducing the import percentage will directly translate to lower costs for farmers and a more sustainable financial burden for the state.
“If this percentage can be reduced, the fertilizer distribution chain will be more affordable, as dependence on [costly imports] can be reduced,” Khaeron explained, as reported by Bisnis.com on September 11th.
This initiative signals a growing commitment from Indonesian policymakers to strengthen domestic industries and achieve greater self-sufficiency in key agricultural inputs. further details regarding the scale and scope of Danantara’s potential investment are expected to be released following the completion of the subsidized fertilizer governance review.
keywords: Indonesia, Fertilizer, Danantara, Import Reliance, Agriculture, Subsidies, State Finance, Investment, Domestic Production, Supply Chain.
