Jakarta (ANTARA) - President Prabowo Subianto said his government has reduced fertilizer prices by 20 percent through major reforms to the country's regulatory and distribution systems.Speaking at the inauguration of an oil refinery project in Balikpapan, East Kalimantan, on Monday, Prabowo said the policy has directly benefited farmers by lowering prices and ensuring more reliable fertilizer supplies
"For the first time in our nation's history, we have succeeded in lowering fertilizer prices by 20 percent," Prabowo said at the event, which was broadcast on the Presidential Secretariat's YouTube channel.
He said the price reduction was achieved after the government removed regulations that had previously hampered fertilizer distribution from factories to farmers.
After taking office on October 20, 2024, Prabowo made agricultural reform a key part of his food self-sufficiency agenda, including streamlining fertilizer distribution.
The government abolished hundreds of regulations considered ineffective and simplified the distribution mechanism for subsidized fertilizer.
Prabowo said fertilizer distribution had previously been governed by 145 regulations involving ministries, agencies, and regional governments, resulting in slow delivery and high prices for farmers.
"We eliminated 145 regulations. Now, instead of 13 signatures, only one instruction is needed, and fertilizer can go directly to farmers using only their identification," he said.
He added that Agriculture Minister Andi Amran Sulaiman had reported the potential for fertilizer prices to fall by up to 25 percent.
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However, Prabowo said part of the reduction was retained to ensure fertilizer producers could still earn reasonable profits, while fertilizer distribution volume has increased to 700,000 tons.
Beyond price reductions, Prabowo said the policy has improved farmer welfare, particularly among rice farmers.
"Rice farmers' incomes have increased. The Farmer's Exchange Rate rose from 106 to 125, the highest in the history of the Republic of Indonesia," he said.
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The Farmer's Exchange Rate stood at 106 in September 2022 and increased to 125 in December 2025.
"Our rice reserves and rice production are also at their highest levels in the history of the Republic of Indonesia," Prabowo added.
On January 6, the president announced that Indonesia’s rice reserves have climbed to more than 3 million tons, the highest level on record.
