Subsidized fertilizer management in the rice production centers of South Sulawesi, Indonesia: Bridging the gap between policy and practice

Abstract

Abstract This study aims to examine the dynamics of subsidized fertilizer management in rice production areas in Sidrap and Wajo districts, South Sulawesi province. Using a case study approach with qualitative analysis, the study combined primary data from in-depth interviews and secondary data derived from various studies and reports from government organizations. The results show that there is a considerable gap between the government’s fertilizer budget and farmers’ actual needs, leading to coverage of only 37%, thus forcing farmers to purchase more expensive non-subsidized fertilizers. The inefficient distribution system results in delays and scarcity. As a result, there will be market and price dualism between subsidized and non-subsidized markets, as well as subsidized and non-subsidized prices. Enforcement of pricing regulations faces hurdles due to the black market. In addition, farmers use the “foster father” system to obtain credit. To improve fertilizer management, the study recommends a multifaceted approach: increased budget allocation, efficient distribution, strong enforcement of pricing regulations, and innovative financing solutions such as the Tani Card. These strategies, along with improved inter-agency coordination, aim to address challenges and increase the effectiveness of subsidized fertilizer policies.