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๐Ÿ‡ฎ๐Ÿ‡ฉ Indonesia /Economy & Trade

South Sulawesi DPRD investigates alleged price manipulation of subsidized fertilizer in Bone

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Named sources Under investigation
  • The South Sulawesi DPRD is investigating allegations of price manipulation for subsidized fertilizer in Bone Regency.
  • Farmers report being forced to pay prices exceeding the highest retail price (HET) for urea and NPK fertilizer.
  • Investigations suggest a prolonged distribution chain involving unauthorized parties may be inflating costs.

The South Sulawesi Provincial Legislative Council (DPRD Sulsel) is actively investigating allegations of price manipulation concerning subsidized fertilizer in Bone Regency. Farmers have come forward with complaints, stating they are being forced to pay prices significantly above the official highest retail price (HET). This issue has prompted Vice Chairman of DPRD Sulsel, Yasir Machmud, to scrutinize the fertilizer distribution process. Machmud suspects that an extended supply chain, involving parties beyond the authorized distributors, is responsible for the inflated prices of subsidized fertilizer. The alleged price gouging has been reported across five sub-districts: Amali, Sibulae, Cina, Tonra, and Ma're, during the 2025-2026 period. Evidence, including video footage showing price discrepancies attributed to delivery cost manipulation, has been presented. The official price for a 50 kg bag of Urea fertilizer is set at Rp90,000, and for NPK Phonska at Rp92,000. However, farmers are reportedly paying up to Rp110,000 per bag, with retailers citing increased shipping costs as the reason. Commission B member Mardjono suspects that entities like Village-Owned Enterprises (BUMDes) or cooperatives might be involved in the sale of subsidized fertilizer, potentially adding extra distribution layers and driving up prices. Responding to the concerns, Sukodim, Senior Manager Regional 4A at PT Pupuk Indonesia (Persero), clarified that the company does not authorize direct sales of subsidized or non-subsidized fertilizer to farmers. He emphasized that farmers are required to obtain fertilizer from official kiosks.

DistantNews Editorial

Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.