The Danantara Indonesia logo adorns the entry canopy at the state asset fund’s Central Jakarta headquarters on Feb. 28, 2025. (Reuters/Willy Kurniawan)
JAKARTA; The House of Representatives has proposed that state asset fund Danantara play a pivotal role in overhauling the subsidsed fertiliser system through strategic investment in factories to curb import dependency.
The request was made during a joint working meeting last Thursday between the House’s State Finance Accountability Committee (BAKN) and representatives of several ministries to finalise a review of subsidised fertiliser governance.
Involving Danantara was a critical step toward achieving long-term production efficiency and affordability, BAKN deputy chairman Herman Khaeron said after the meeting at the Senayan Legislative Complex in Central Jakarta.
Furthermore, he suggested that the state asset fund “focus on building or revitalising fertiliser factories along with other investments”, noting the urgent need for investment, as 60% of components for domestic fertiliser production were still imported.
This heavy reliance inflated costs and disrupted the supply chain, ultimately burdening farmers and the state budget, Herman said.
“If this percentage can be reduced, the fertiliser distribution chain will be more affordable, as dependence on (costly imports) can be reduced,” he said on Sept 11, as quoted by Bisnis.com.
Herman said the newly proposed subsidy scheme had to ensure affordable prices for farmers while also fixing supply-side issues. — The Jakarta Post/ANN
