Jakarta, CNBC Indonesia - Amid escalating global geopolitical\nconflicts, Indonesia is seizing a significant opportunity in the\nfertiliser sector. PT Pupuk Indonesia (Persero)\u2019s President Director\nRahmad Pribadi stated that disruptions to global urea supplies due to\nobstacles in the Strait of Hormuz are opening up export opportunities\nfor Indonesia.<\/p>\n
\u201cIndonesia is different. We are a urea exporting country, and the\ndisruption in the Strait of Hormuz affects urea fertiliser. That means\nfrom the 10 million tonnes annual capacity in the Strait of Hormuz, that\nsupply is lost from the market. Indonesia, Pupuk Indonesia exports\nbetween 1.5 to 2 million tonnes. So our position for fertiliser due to\nthis geopolitics is all secure,\u201d Rahmad said when met at the Ministry of\nAgriculture office in Jakarta on Monday (30\/3\/2026).<\/p>\n
According to Rahmad, this situation even positions Indonesia as a key\nplayer in maintaining global food supplies.<\/p>\n
\u201cIn the current geopolitical dynamics, Indonesia can actually become\none of the saviours of the world food ecosystem. Why? Because the world\nis losing urea supply and Indonesia is a urea exporting country,\u201d he\nsaid.<\/p>\n
He revealed that several major countries are approaching Indonesia to\nsecure fertiliser supplies.<\/p>\n
\u201cThis afternoon I will meet or hold a special meeting with the Indian\ngovernment, followed by the Australian government and then various\nothers, all coming here because they know Indonesia\u2019s strategic position\ntoday,\u201d he disclosed.<\/p>\n
Nevertheless, Rahmad emphasised that Indonesia will not immediately\nreplace the entire lost global supply.<\/p>\n
\u201cNo.\u00a0It means like this, if replacing the whole thing, we can\u2019t, but\nat least Indonesia is an exporter. So certainly after focusing on\ndomestic needs, after domestic needs are met, we will export,\u201d he\nexplained.<\/p>\n
He also assured that supplies of other fertilisers like NPK remain\nsecure, despite rising global logistics costs.<\/p>\n
\u201cSecure, secure. Because it doesn\u2019t go through the Strait of Hormuz\u2026\nAh yes, that\u2019s across all commodities. So secure,\u201d Rahmad said.<\/p>\n
He explained that Pupuk Indonesia\u2019s urea production capacity reaches\n9.4 million tonnes per year, with export potential of 1.5-2 million\ntonnes depending on domestic needs.<\/p>\n
\u201cIf domestic needs are high, we export 1.5 million tonnes. If they\ndrop, we can export up to 2 million tonnes,\u201d he said.<\/p>\n
Meanwhile, PT Pupuk Indonesia (Persero)\u2019s Corporate Secretary\nYehezkiel Adiperwira emphasised that the primary priority remains\nfulfilling domestic needs, particularly subsidised fertiliser.<\/p>\n
\u201cOur focus now is fulfilling subsidised fertiliser first. This year\u2019s\nsubsidised fertiliser is 9.84 million tonnes. That must be distributed,\u201d\nYehezkiel said on the same occasion.<\/p>\n
He added that exports will only be conducted if domestic needs have\nbeen met.<\/p>\n
\u201cSo we fulfil the domestic focus first. If there\u2019s excess, then we\ncan export,\u201d he said.<\/p>\n
On the other hand, he noted that the rise in global fertiliser prices\nis a consequence of the disrupted world supply.<\/p>\n
\u201cOh yes, so that\u2019s the law of supply and demand. It\u2019s the same as\nglobal oil prices, because supply is limited, demand is high, prices\nwill definitely rise,\u201d he explained.<\/p>\n
Even though global prices are rising, Yehezkiel assured that domestic\nsubsidised fertiliser prices remain stable.<\/p>\n
\u201cBut Pupuk Indonesia\u2019s commitment to subsidised fertiliser, the HET\nremains in accordance with government regulations. So for domestic\nfarmers, subsidised farmers in the country, hopefully or we ensure they\nwill not be affected by this, by this war,\u201d he stressed.<\/p>\n
With total production capacity reaching 14.8 million tonnes per year,\nIndonesia is considered to be in a strategic position to leverage the\nsurge in global demand, without sacrificing domestic needs.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/global-urea-supply-at-risk-head-of-state-owned-fertiliser-firm-claims-visits-from-these-2-countries-1774850004", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }