PERHITUNGAN SUBSIDI PUPUK 2004 BERDASARKAN ALTERNATIF PERHITUNGAN SUBSIDI ATAS BIAYA DISTRIBUSI

Abstract

Economic crisis was decreasing farmer income. At the end, its would be difficult for the
fertilizer producers to stabilized production for domestic supply. For stabilizing fertilizer
production and price, it is necessary to government to subsidized fertilizer. This objective of this
assessment was calculated the fertilizer subsidy through the distribution cost subsidy calculation
method for 2004 compare to government fertilizer subsidy budget for 2004, Rap. 1.3 trillion. The
result showed in 2004 the government had to budgeted about Rp. 1.64 trillion for fertilizer
subsidy. In the other calculation using 2004 distribution cost and fee for distributor, the fertilizer
subsidy increased to Rp. 1.875 trillion. This calculation bigger than the government fertilizer
subsidy budget for 2004. It is necessary to reallocate the government budget for fertilizer subsidy
and stabilized exchange rate for stabilizing fertilizer production and price at farmer level.