Everyone Benefits... Except Farmers

USAID has found embezzlement of subsidized fertilizers in seven out of 10 Indonesian cities studied. Fertilizer for poor farmers is sold to large plantations and wealthy farmers.

September 25, 2012

A small store measuring 12 meters square sits by the side of a road in Cipangeran village, in the West Bandung regency of West Java. The owner, Tarsah, lives in a house behind the store. The middle-aged man is known by the villagers as a seller of the subsidized urea fertilizers, ZA, NPK and SP-36.

In an average year, Tarsah can sell 50 metric tons of fertilizer with a profit of Rp400 per kilogram. All the fertilizers are sold above the maximum re

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