Lumajang, June 10, 2025 – PT Pupuk Indonesia (Persero) has officially terminated its partnership for the distribution of subsidized fertilizer with the Berkah Abadi kiosk located in Senduro District, Lumajang Regency, East Java. Based on a joint field inspection by Pupuk Indonesia and the Lumajang Police, the kiosk owner admitted to selling subsidized NPK fertilizer at Rp150,000 per sack—above the government-mandated Highest Retail Price (HET) of Rp115,000 per sack.

This was conveyed by Saroyo Utomo, Senior Manager (SM) of Regional 3A at Pupuk Indonesia, following a directive from the Minister of Agriculture (Mentan) of the Republic of Indonesia, Andi Amran Sulaiman, during his visit with farmers in Lumajang on Tuesday (6/10/2025).

“In accordance with the terms and conditions stated in the sales agreement between the distributor and the kiosk, due to the violation of selling above the HET, the Berkah Abadi Kiosk is officially closed and its contract is terminated as of today, June 10, 2025,” he stated.

Therefore, he added, Pupuk Indonesia confirms that as of today, the operations of the Berkah Abadi Kiosk are ceased. The subsidized fertilizer redemption application system, known as i-Pubers, which is typically used by kiosks, has also been deactivated to prevent any further transactions.

Pupuk Indonesia assures that the closure of this kiosk will not disrupt the fertilizer distribution process to farmers. The remaining stock of 8 tons of subsidized NPK fertilizer at Berkah Abadi Kiosk will be physically transferred to UD Madani Kiosk, which has been appointed as its replacement.

For reference, the HET for subsidized fertilizers in 2025, as set by the Ministry of Agriculture, is as follows:

• Urea Fertilizer: Rp2,250/kg

• NPK Phonska Fertilizer: Rp2,300/kg

• NPK Fertilizer for Cocoa: Rp3,300/kg

• Organic Fertilizer: Rp800/kg

Saroyo reminded all kiosk partners that any violation of the subsidized fertilizer distribution regulations carries strict penalties. If proven, the penalties may range from a formal warning to termination of the partnership.

As a preventive measure, Pupuk Indonesia continues to intensify education efforts aimed at farmers, kiosks, and related parties about the importance of adhering to HET regulations. This includes proper documentation on receipts for any agreed-upon price adjustments between the kiosk and farmers, such as delivery charges, post-harvest payments (yarnen), or other mutually agreed costs that might result in a price above the HET.

Furthermore, Pupuk Indonesia requires all partner kiosks to display banners containing contact information for farmers to report any kiosks selling subsidized fertilizer above the HET. The company also encourages the public to report any suspected violations in fertilizer distribution.

Reports can be submitted through Pupuk Indonesia’s field team or by contacting the company’s official customer service. Farmers can access the toll-free customer service at 0800 100 8001 or via WhatsApp at 0811 9918 001.

“The public is also encouraged to participate in monitoring the circulation of subsidized fertilizers. If any suspicious activity is found, do not hesitate to report it to law enforcement authorities,” he concluded.