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Targeting Efficiency: Reviewing Indonesia’s Fertilizer Subsidy Reform
Authors
Sarah Firdausi
Rahmad Supriyanto
Indonesia’s fertilizer subsidy program has struggled to boost agricultural productivity and farmer welfare. Previous efforts like the Farmer Card faced issues with access and distribution. In 2025, the government plans to pilot a new approach—Direct Fertilizer Assistance (BLP)—with more flexible distribution beyond state-owned channels.
To succeed, BLP should be delivered as cash transfers, use social assistance data for better targeting, and improve farmers’ financial literacy. A pilot in three major rice-producing regions will help assess the program’s effectiveness and operational readiness.
Aditya Alta
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