Subsidized fertilizers are fertilizers whose procurement and distribution receive subsidies from the Government for the needs of farmers which are implemented on the basis of Government programs. Given the limitations of the Government in providing fertilizer subsidies in the framework of government programs, subsidized fertilizers are only intended for agricultural businesses which include Food Crop Farmers, Animal Husbandry and Community Plantation. And to guarantee the procurement and prevent irregularities in the distribution of subsidized fertilizers, a Ministerial Decree is stipulated, namely through the Decree of the Minister of Industry and Trade No. 70 / MPP / Kep / 2/2003 dated 11 February 2003, concerning the Procurement and Distribution of Subsidized Fertilizer for the Agricultural Sector.
PT PPI is an authorized distributor, appointed by producers to purchase, store, sell and market subsidized fertilizers in bulk for sale to final consumers through their retailers. The fertilizers that are distributed by PT PPI are Pupuk Sriwidjaja, Kujang Fertilizer, East Kalimantan Fertilizer, Iskandar Muda Fertilizer, and Gresik Petrochemical Fertilizer.