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Indonesia Fertilizer Supplay Chain
Indonesia Fertilizer Supplay Chain
TUGAS:
Essay Mengenai Supply Chain di Perusahaan Anda
Kelompok 2
Irwan Hermantria - (041914353006)
Ricki Setiawan Sulistyo – (041914353026)
Tri Alfian Safii – (041914353040)
Fertilizer Subsidy Supply Chain in Indonesia
Cards (Existing) vs
Instrument Cards (KPS) Combo Cards Direct to PLN by IDPEL Fintech (Proposal) Fintech (Proposal)
Manufacturers
Five SOEs (PUSRI, PIM, PKG, PKT and PK)) operating under PT Pupuk Indonesia have effective monopoly in
subsidized fertilizer. Each producer is assigned to geographical areas and must appoint distributor that
meet the regulatory requirement.
Private sector (over 160 listed manufacturers) holds a small market share as the fertilizer production from
this sector only to fulfil the needs of mixed compound fertilizers and non urea fertilizer. Wilmar is one of
the biggest with capacity over 1 2 mn tons.
Government subsidies and price controls results in a very limited number of private companies entering
the market to supply fertilizers
Fertilizer Subsidy Supply Chain in Indonesia
Distributors
The fertilizer is sent to 2 500 distributors a company which is legal and is appointed by the
producer to purchase, to store, to sell and to market subsidized fertilizer to be sold to final
consumers through retailers They must designate a minimum of two retailers in each
district/village
Retailers
Distributors with the help of government officials then decide how much is to be distributed to
the 44 000 retailers Retailers/kiosks can sell subsidized fertilizers only to eligible users
Farmers
38 mn eligible users (non food crop farmers, farm sizes less than 2 hectares or aquaculture less
than 1 hectare) can only buy specified fertilizer at a specified kiosks The identify of eligible
recipients must be confirmed by village authorities
Fertilizer Subsidy Supply Chain in Indonesia
Fertilizer Subsidy Supply Chain in Indonesia
Fertilizer Subsidy Supply Chain in Indonesia