Close Menu
Invest Intellect
    Facebook X (Twitter) Instagram
    Invest Intellect
    Facebook X (Twitter) Instagram Pinterest
    • Home
    • Commodities
    • Cryptocurrency
    • Fintech
    • Investments
    • Precious Metal
    • Property
    • Stock Market
    Invest Intellect
    Home»Commodities»Supply, price certainty of natural gas, agricultural effectiveness, key to food security – Front Row
    Commodities

    Supply, price certainty of natural gas, agricultural effectiveness, key to food security – Front Row

    July 17, 20245 Mins Read


    ational food security remains a strategic issue continuously discussed by various stakeholders. The complexity of food management from the central to regional levels, cross-sectoral dynamics, and the relationship between energy security and agricultural productivity all influence Indonesia’s food security.

    In an effort to help contribute to food security in Indonesia, Tenggara Strategics and the Centre for Strategic and International Studies (CSIS) Indonesia held a public discussion with stakeholders from the energy and food sectors, titled “Building food security: The contribution of energy to agricultural productivity,” on July 16.

    This event was the first in a series of discussions planned to be held until October. The public discussion was attended by representatives from the Agriculture Ministry, the Energy and Mineral Resources Ministry, the Indonesian Farmers and Fishermen Association (KTNA), PT Pupuk Indonesia (Persero) and an agricultural economics professor from the University of Lampung.

    The speakers at the event recognized the importance of the continued supply of natural gas as a raw material for fertilizers at the right price to support Indonesia’s agricultural productivity, in addition to agricultural effectiveness and regeneration of farmers.

    • Mirza Mahendra, director of oil and gas program development at the Energy and Mineral Resources Ministry

    Mirza explained that the fertilizer industry was a priority for the ministry’s allocation of natural gas due to its wide multiplier effect on the overall food sector.

    “The Energy and Mineral Resources Ministry guarantees the availability of domestic gas for the fertilizer industry until 2030, while prices will be determined later by the government. Currently, the government has continued the fixed natural gas price policy [HGBT] for fertilizers and several other industries,” he said.

    However, Mirza further said, the government still faced challenges in distributing gas, which is sourced relatively far from the industries consuming it. The fact that Indonesia has an archipelagic geography makes distributing gas to industrial consumers more challenging.

    • Mulyono, head of the food crop processing substance group, the directorate of food crop processing and marketing, the Agriculture Ministry

    “The government’s decision to increase the allocation of subsidized fertilizers to 9.55 million tonnes this year will meet 79 percent of fertilizer needs, and this is expected to help the ministry achieve its target of 53.98 million tonnes of unhusked rice grain production.”

    Furthermore, Mulyono explained that to support the sustainability of the agricultural sector, the Agriculture Ministry is ready to support the transition of agricultural programs to be implemented by the next administration.

    • Sidi Asmono, head of the cooperation and advocacy department, KTNA

    Sidi reminded participants of the importance of regeneration of farmers for the sustainability of the agricultural sector.

    “In Indonesia, 70 percent of farmers are seniors, and the farmer regeneration campaign by the government has been ongoing since 2015 and needs to continue, to encourage more young people to enter the agricultural sector,” said Sidi.

    Additionally, Sidi predicted that extreme climate phenomena such as El Niño and La Niña would impact global food prices, and this would require efforts to boost domestic food production.

    • Jamsaton Nababan, director of portfolio and business development, PT Pupuk Indonesia

    Jamsaton revealed that fertilizers contribute 62 percent to food productivity and 23 percent to the cost structure of rice farming. Jamsaton explained that the largest factor influencing fertilizer prices is natural gas, one of the main raw materials in fertilizer production. Natural gas accounts for 71 percent of the production cost of urea fertilizer and 5 percent of NPK fertilizer.

    “We appreciate the government’s decision to continue the HGBT policy for fertilizers and the commitment from the Energy and Mineral Resources Ministry to guarantee a long-term gas supply for the fertilizer industry,” said Jamsaton.

    • Bustanul Arifin, professor of agricultural economics, the University of Lampung

    Bustanul pointed out that in the first quarter of 2024, global fertilizer prices fell, driven by the decline in natural gas prices, which is good for agriculture productivity. This positive development is expected to continue with fertilizer prices continuing to fall throughout 2024 and 2025 amid China’s fertilizer export ban.

    However, Bustanul warned of possible negative external developments such as the risk of trade restrictions and political tensions in the Middle East, which is a source of global natural gas supply and other fertilizer raw materials.

    Bustanul also highlighted the importance of the correct application of fertilizers by farmers to increase agricultural yields.

    “Improper use of fertilizers will not effectively increase agricultural productivity. Therefore, farmers need to be educated and assisted in applying fertilizers more efficiently and avoid potential overuse,” Bustanul explained.

    • Riyadi Suparno, executive director of Tenggara Strategics

    Riyadi explained that there was a strong relationship between fertilizer sales volume and rice output, making it important to maintain the supply volume of fertilizers, especially subsidized fertilizers.

    “If the goal is to increase agricultural productivity, the HGBT should be applied to both subsidized and non-subsidized fertilizers sold domestically,” he said.

    The food sector is the foundation of community survival, so the incoming government needs to ensure the country’s ability to continue guaranteeing national food security. Increasing agricultural productivity is key to ensuring that food is available in sufficient quantities at affordable prices for all Indonesians.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    Five key climate and energy announcements in India’s budget for 2026

    Commodities

    Top 10: Energy Events | Energy Magazine

    Commodities

    Money problem: ‘EDF charged me for energy I used two years ago – do I have to pay?’ | Money News

    Commodities

    OpenAgriNet Digital Network Initiative Launched to Modernize Agricultural Data Systems – ENA English

    Commodities

    China’s No.1 central document in starting year of 15th Five-Year Plan sets agricultural modernization roadmap, turning rural potential into growth momentum

    Commodities

    Wickes says 99p tool lowers energy bills and recommends ‘one degree rule’

    Commodities
    Leave A Reply Cancel Reply

    Top Picks
    Property

    Swedish Logistics Property achète deux propriétés en Suède -Le 24 mars 2025 à 11:40

    Cryptocurrency

    Trump Hawks Cryptocurrency Three Weeks Before the Election

    Investments

    Judge Gordon Vincent announces retirement

    Editors Picks

    Property firm pays £4.85m to snap up luxury apartment building in Bath city centre

    August 17, 2025

    Sumou Real Estate signe un contrat de développement résidentiel de 680 millions de riyals saoudiens

    May 24, 2025

    The Commodities Feed: OPEC+ nearing the end of supply hikes | articles

    July 10, 2025

    The Navy’s Ohio-Class SSGN Submarines: ‘Cruise Missile Trucks’ Headed for Retirement?

    October 15, 2024
    What's Hot

    United Utilities to make Lake District route accessible

    October 28, 2025

    Trump DOE decides to keep at least one Biden-era energy program

    October 17, 2025

    Generali Investments : “La Fed voudra faire preuve de prudence” -Le 27 janvier 2025 à 16:40

    January 27, 2025
    Our Picks

    Rio Tinto et BHP obtiennent le statut accéléré pour leur projet minier Resolution Copper Mine

    April 21, 2025

    Innovative Chinese dissident uses cryptocurrency to fund his activism

    July 31, 2025

    Discover 3 Euronext Paris Dividend Stocks With Yields Up To 9.6%

    July 23, 2024
    Weekly Top

    Fintech Meetup Reveals Joint Keynote from Global Financial Leaders Jessica Rusu and Kyle Hauptman

    February 4, 2026

    Four lucky Premium Bonds holders win £100,000 each on their first draw

    February 4, 2026

    Black Swan Summit set to position Odisha capital as AI, FinTech hub

    February 4, 2026
    Editor's Pick

    I asked ChatGPT for the best FTSE dividend stock to buy now and this is what it told me

    February 24, 2025

    US DOE Offers Funding to Improve Tribal Access to Clean Energy Support

    July 22, 2024

    RMC dévoile sa nouvelle radio musicale «RMC Gold »

    March 27, 2025
    © 2026 Invest Intellect
    • Contact us
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.