Legal Policy in Fertilizer Distribution and Subsidies: Efforts to Enhance Agricultural Productivity

Abstract

This study examines Indonesia’s legal policies on fertilizer distribution and subsidies and their effects
on agricultural productivity. Agriculture is vital to the nation’s economy, contributing about 13.28% to
the GDP in 2021 and ensuring food security. Effective fertilizer subsidies can bolster productivity and
meet the needs of a growing population. The research emphasizes the necessity of a legal framework
that enables farmers, especially in remote areas, to access affordable fertilizers. Recent reforms, such
as the Minister of Agriculture Regulation No. 10 of 2022, aim to enhance distribution efficiency and
subsidy accuracy. Through a systematic literature review over the last 15 years, this analysis evaluates
the effects of policy adjustments on farmers’ access and productivity. While it shows improved access
due to subsidy policies, challenges remain, including over-reliance on harmful chemical fertilizers and
unequal distribution. The study advocates for the reinforcement of subsidy policies, shift towards sustainable practices, and the adoption of technology for effective distribution monitoring. In conclusion,
while fertilizer subsidies are essential for productivity growth, addressing distribution issues and ensuring sustainability are imperative. Recommendations for policymakers include boosting technological
support, effective communication with farmers, and ensuring efficient distribution systems to enhance
Indonesia’s food security and economic stability.