The government intervention in the price of fertilizers for organic rice production showed a positive impact. The use of fertilizer is able to increase rice productivity significantly. It is influential in the increase of farmers' income. Subsidies of fertilizer worth 912 Rupiah per hectare or equivalent with 10 percent of the actual selling price can increase farmers' income by 1915 Rupiah per hectare.
According to Prof. Drs. Catur Sugiyanto, MA, Ph.D., despite the government’s intervention in the provision of organic fertilizer that proved to give positive effect on farmers' income, the government still needs to plan when the provision of subsidized fertilizer should be removed from an area. "Some farmers already have a higher level of willingness to pay for fertilizers. This reflects the increasing level of farmers’ welfare, thus the provision of subsidized fertilizer can now be impeded," he said at his inauguration of Professorship at the UGM Faculty of Economics and Business, Tuesday (1/3) at the Senate Hall of UGM.
In general, Catur said, government policy in encouraging the re-use of organic fertilizer since 2001 gets a positive response from farmers. Organic rice farmers do not only get the extra income, but also soil fertility is improved. However, in the dissemination of the program to return to use organic fertilizers rather than the chemical ones, several factors need to be considered, such as the assurance of rice price as an incentive for farmers to use organic fertilizers. The price stabilization will reduce the uncertainty of farmers' income. “The effort of villages’ granary and institution for price’s buffer, such as Bulog, has been long awaited for by farmers," the man born in Boyolali, 21 June 1964, explained when delivering a speech entitled Economic Analysis of Organic Rice Production in Indonesia.
The Chairman of the Islamic Economics Master Program at the Graduate School of UGM added that in disseminating the program to return to organic fertilizers, we need to consider that the speed of organic fertilizer’s adoption will be supported by the reduction in adoption costs and uncertainty. The provision of fertilizer subsidies should be continued, but with a strict evaluation and mentoring when subsidies should be removed.
Thus, "PPL" placement within the organizational structure of local governments needs to consider the function of PPL as an instructor. "Considering all this, hopefully the widespread use of organic fertilizers through the 'Go Organic 2010' program continues to be encouraged and maintained so that the sustainability of rice production in Indonesia is assured," said Catur.