The global fertiliser crisis, sparked by geopolitical conflicts in\nthe Middle East, is beginning to affect various countries. Iran\u2019s\nclosure of the vital Strait of Hormuz route is said to disrupt worldwide\nfertiliser distribution and trigger a significant surge in prices.<\/p>\n
Rector of Perbanas Institute, Prof.\u00a0Hermanto Siregar, stated that\naround one-third of the global fertiliser supply typically passes\nthrough that route. Distribution disruptions directly impact food\nsecurity, particularly in Africa and South Asia.<\/p>\n
\u201cDependence on international distribution is highly vulnerable. What\nis happening now serves as a serious warning for many countries,\u201d\nHermanto said on Monday (4\/5\/2026).<\/p>\n
The crisis\u2019s impact is also felt in Europe. German fertiliser company\nSKW Piesteritz has ramped up production to meet market needs. However,\nhigh energy prices pose a major challenge. Around 80 per cent of\nfertiliser production relies on gas, whose prices have skyrocketed since\nthe conflict erupted.<\/p>\n
In contrast to this situation, Indonesia is deemed to have stronger\nbuffers. The national fertiliser production capacity, supported by\ndomestic industries, ensures supply continuity even under global market\npressures.<\/p>\n
Currently, the total production capacity of PT Pupuk Indonesia\n(Persero) reaches 14.65 million tonnes per year, comprising 9.36 million\ntonnes of urea, 4.52 million tonnes of NPK, 750,000 tonnes of ZA, and\n20,000 tonnes of ZK per year. Meanwhile, domestic needs are below this\nfigure, creating a surplus margin estimated at around 1.5 million tonnes\nin 2026.<\/p>\n
\u201cAmid this global pressure, President Prabowo has instead lowered\nsubsidised fertiliser prices by 20 per cent. This policy is seen as a\nstrategic response in maintaining national food production\nsustainability,\u201d he said.<\/p>\n
According to Hermanto, this precise step was taken at a crucial\nmoment like the present. Since February 2026, conflicts in the Middle\nEast region have led to the closure of the Strait of Hormuz, while China\nhas halted exports of major nitrogen fertilisers.<\/p>\n
\u201cAs a result, global urea prices have surged more than 40 per cent in\na short time,\u201d he said.<\/p>\n
The government is not only lowering prices but also implementing\nstructural reforms. Through a Presidential Instruction, 145 fertiliser\nregulations have been cut to accelerate distribution from the Ministry\nof Agriculture (Kementan) to PT Pupuk and directly to farmers.<\/p>\n
\u201cFertiliser access is now expanded through KTP-based integration and\nstrengthening of kiosk networks down to the village level. The\ngovernment targets distribution to reach all food production\nsub-districts before the 2026 gadu planting season,\u201d he said.<\/p>\n
This policy is estimated to reduce farmers\u2019 production costs by\nhundreds of thousands of rupiah per hectare per planting season. More\nthan 16 million farmers are also said to benefit from easier fertiliser\naccess and reduced potential shortages.<\/p>\n
Not stopping at the upstream sector, the government is also\nstrengthening protection in the downstream sector. The Government\nPurchase Price (HPP) for unmilled rice has been set at Rp 6,500 per\nkilogram to safeguard farmers\u2019 profit margins amid global price\nfluctuations.<\/p>\n
This upstream-downstream approach distinguishes Indonesia\u2019s policies\nfrom other countries in the region. Several Southeast Asian nations are\nnow facing serious pressures due to reliance on fertiliser imports.<\/p>\n
\u201cVietnam, for instance, is heavily dependent on fertiliser supplies\nfrom China, while the Philippines imports around 75 per cent of its\nneeds from that country. Thailand is also affected, with some farmers\ndelaying planting seasons due to high production costs,\u201d he said.<\/p>\n
Amid this situation, Indonesia is deemed to be in a stronger\nposition. In addition to policy support, government rice reserves that\nhave exceeded 5 million tonnes serve as an important buffer in\nmaintaining national food stability.<\/p>\n
\u201cThese reserves are said to be the highest in history and result from\nconsistent production policies, including pompanisasi programmes,\nexpansion of planting areas, and strengthening of unmilled rice\nabsorption by Perum Bulog,\u201d he said.<\/p>\n
With a combination of subsidy policies, deregulation, and reserve\nstrengthening, Indonesia is deemed capable of maintaining food security\namid the global fertiliser crisis threats and world economic\nuncertainties. \u201cSo I see the policies of the President implemented by\nthe Minister of Agriculture as very appropriate,\u201d he said.<\/p>\n
Along with this situation, Indonesia\u2019s position in the global supply\nchain is beginning to shift. Several countries are reportedly exploring\nfertiliser supplies from Indonesia to secure their needs amid the\ncrisis. India is said to have submitted a request to meet its planting\nseason needs, while Australia has also opened supply cooperation as a\nprecautionary step against global distribution disruptions.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/indonesia-mitigates-impact-of-global-fertiliser-crisis-analysts-deem-prabowos-policies-on-target-1777884805", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }