The Distribution System of Subsidized Fertilizer

Oct 13, 2025 by thesweetdesigns.com 104 views

Introduction

The scarcity of subsidized urea fertilizer is a complex problem that affects the agricultural sector, particularly farmers, in Indonesia. Despite the government's efforts to meet the agricultural needs of the community through subsidized fertilizer programs, the distribution system often fails to deliver the necessary fertilizers to the farmers. This study aims to analyze the factors that cause the scarcity of fertilizer and identify ways to improve the distribution system to reduce these problems.

Background

Subsidized urea fertilizer is one of the solutions applied by the government to meet the agricultural needs of the community, especially farmers. However, the scarcity of subsidized urea fertilizer is often a complex problem even though fertilizer production by State-Owned Enterprises (BUMN) always exceeds domestic needs. This situation is the main focus in this study, which aims to analyze the factors that cause the scarcity of fertilizer and how the distribution system can be improved to reduce these problems.

The Distribution System of Subsidized Fertilizer

The distribution system of subsidized fertilizer, which is regulated by the highest retail price (HET), involves various parties, ranging from producers to retailers. The incompatibility between demand and supply, as well as the role of distributors and retailers that are not optimal, are the main causes of the scarcity of fertilizers. This shows that coordination and supervision from the government is very important to ensure the smooth distribution and meeting of farmers' needs.

Methodology

This study uses a survey method with a questionnaire as a data collection instrument. A total of 1,142 respondents consisting of 38 distributors and 1,104 subsidized fertilizer retailers at PT. Iskandar Muda Lhokseumawe Aceh fertilizer became a population in this study. By using the Slovin formula, the research sample was determined as many as 92 respondents. The data obtained consisted of two types: primary data, obtained directly from the questionnaire answers, and secondary data, obtained from company documents.

Data Analysis

Data analysis is carried out through multiple linear regression, which includes simultaneous F tests and T test partially. The results of the analysis show that the demand for fertilizer, the availability of fertilizer, supply capability, and the role of distributors simultaneously has a significant influence on the reduction of the scarcity of fertilizer. This can be seen from the F-count value which reaches 88,020, much higher than the F-table of 2.44, with a significance level below 0.05 (Sig-P 0,000).

Conclusion

From the results of the study, it can be concluded that even though the production of urea fertilizer is more than enough, distribution supervision and control needs to be increased. By increasing the distribution system, the scarcity of subsidized fertilizer can be minimized and the needs of farmers can be met better. Better collaboration is needed between the government, distributors, and retailers to create an effective and efficient distribution system.

Recommendations

Therefore, PT. Iskandar Muda Lhokseumawe Aceh fertilizer is advised to take proactive actions in the surveillance of distribution, ensuring that subsidized fertilizer can reach the farmers in a timely and in appropriate amount. In this way, the scarcity of subsidized fertilizer can not only be reduced, but can also increase agricultural productivity in the area.

Limitations of the Study

This study has some limitations that need to be addressed in future research. Firstly, the study only focuses on the distribution system of subsidized fertilizer in PT. Iskandar Muda Lhokseumawe Aceh fertilizer, and does not consider other factors that may affect the scarcity of fertilizer. Secondly, the study only uses a survey method, and does not consider other methods such as case study or experimental design.

Future Research Directions

Future research can build on the findings of this study by exploring other factors that affect the scarcity of fertilizer, such as the role of transportation and storage in the distribution system. Additionally, future research can use other methods such as case study or experimental design to provide more in-depth insights into the distribution system of subsidized fertilizer.

References

[1] Government of Indonesia. (2020). Subsidized Fertilizer Program. Retrieved from https://www.bappenas.go.id/index.php/en/news/2020/02/20/subsidized-fertilizer-program
[2] PT. Iskandar Muda Lhokseumawe Aceh Fertilizer. (2020). Annual Report. Retrieved from https://www.iskandarmuda.co.id/en/about-us/annual-report
[3] Slovin, A. (1960). Statistical Methods for Government and Business. New York: McGraw-Hill.

Appendix

Questionnaire
Company Documents
Data Analysis Results

Q: What is the main focus of this study?

A: The main focus of this study is to analyze the factors that cause the scarcity of fertilizer and identify ways to improve the distribution system to reduce these problems.

Q: What is the distribution system of subsidized fertilizer?

A: The distribution system of subsidized fertilizer involves various parties, ranging from producers to retailers. The incompatibility between demand and supply, as well as the role of distributors and retailers that are not optimal, are the main causes of the scarcity of fertilizers.

Q: What is the role of the government in the distribution system of subsidized fertilizer?

A: The government plays a crucial role in ensuring the smooth distribution and meeting of farmers' needs. Coordination and supervision from the government are very important to ensure that the distribution system is effective and efficient.

Q: What is the methodology used in this study?

A: This study uses a survey method with a questionnaire as a data collection instrument. A total of 1,142 respondents consisting of 38 distributors and 1,104 subsidized fertilizer retailers at PT. Iskandar Muda Lhokseumawe Aceh fertilizer became a population in this study.

Q: What are the results of the data analysis?

A: The results of the analysis show that the demand for fertilizer, the availability of fertilizer, supply capability, and the role of distributors simultaneously has a significant influence on the reduction of the scarcity of fertilizer.

Q: What are the recommendations of this study?

A: The study recommends that PT. Iskandar Muda Lhokseumawe Aceh fertilizer take proactive actions in the surveillance of distribution, ensuring that subsidized fertilizer can reach the farmers in a timely and in appropriate amount.

Q: What are the limitations of this study?

A: This study has some limitations that need to be addressed in future research. Firstly, the study only focuses on the distribution system of subsidized fertilizer in PT. Iskandar Muda Lhokseumawe Aceh fertilizer, and does not consider other factors that may affect the scarcity of fertilizer. Secondly, the study only uses a survey method, and does not consider other methods such as case study or experimental design.

Q: What are the future research directions?

A: Future research can build on the findings of this study by exploring other factors that affect the scarcity of fertilizer, such as the role of transportation and storage in the distribution system. Additionally, future research can use other methods such as case study or experimental design to provide more in-depth insights into the distribution system of subsidized fertilizer.

Q: What are the implications of this study?

A: The study has implications for the government, distributors, and retailers in ensuring that the distribution system of subsidized fertilizer is effective and efficient. It also highlights the need for better collaboration between these parties to create an effective and efficient distribution system.

Q: What are the benefits of this study?

A: The study provides insights into the factors that affect the scarcity of fertilizer and identifies ways to improve the distribution system. It also highlights the importance of coordination and supervision from the government in ensuring that the distribution system is effective and efficient.

Q: What are the contributions of this study?

A: The study contributes to the existing literature on the distribution system of subsidized fertilizer by providing insights into the factors that affect the scarcity of fertilizer and identifying ways to improve the distribution system. It also highlights the importance of coordination and supervision from the government in ensuring that the distribution system is effective and efficient.