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