Government Prepares Revision of Regulation of the Minister of Finance on Fertilizer Subsidy Funds

The government is preparing a revision of Regulation of the Minister of Finance (“Permenkeu”) No. 68/PMK.02/2016 on Procedures for the Provision, Disbursement, and Accountability of Fertilizer Subsidy Funds, as amended by Permenkeu No. 47 of 2025 (collectively referred to as “Permenkeu 68/2016”). This update to the legal instrument is a follow-up to the issuance of Regulation of the President (“Perpres”) No. 113 of 2025 on the Amendment to Perpres No. 6 of 2025 on Governance of Subsidized Fertilizer (collectively referred to as “Perpres 6/2025”).

“It is currently being prepared. Perhaps in the first semester of 2026,” said an internal source at Hukumonline in the Directorate-General of Budget (DJA) of the Ministry of Finance.

One of the focuses of the update is the subsidy calculation scheme, which currently uses the Cost of Goods Sold (“HPP”) plus margin approach, commonly known as cost plus. This incentive is necessary for fertilizer producers to be able to invest in factory revitalization or renewal.