Jakarta (ANTARA) - The President Director of PT Pupuk Indonesia\n(Persero), Rahmad Pribadi, has assured that the national fertiliser\nsupply and raw materials remain secure despite the escalation of\ngeopolitical conflicts in the Middle East, particularly along the Strait\nof Hormuz route.<\/p>\n
\u201cBecause we have advance payments from the government, we can\npurchase the raw materials upfront, those that are imported. For\ndomestic ones, the prices are set by the government and do not change,\nso everything is under control,\u201d Rahmad stated when met after a working\nmeeting with Commission XI of the House of Representatives in Jakarta on\nThursday.<\/p>\n
Rahmad emphasised this when journalists confirmed the availability of\nfertiliser raw materials amid the Middle East turmoil.<\/p>\n
He assured that the raw materials are still in a controlled position.\nThe national operational urea fertiliser production capacity reaches 8.8\nmillion tonnes, although the installed capacity is 9.4 million\ntonnes.<\/p>\n
He also conveyed that with the issuance of Presidential Regulation\n(Perpres) No.\u00a0113 of 2025 on the Governance of Subsidised Fertilisers,\nhis company can procure raw materials because the government makes\nupfront payments.<\/p>\n
According to him, the policy change through Presidential Regulation\nNo.\u00a0113 alters the fertiliser subsidy mechanism to be more efficient and\nmarket-price based.<\/p>\n
He explained that the subsidy claiming mechanism no longer uses the\ncost-plus scheme but refers to market prices, which is deemed more\ntransparent and accountable.<\/p>\n
Rahmad stated that this deregulation policy enables faster and more\nefficient fertiliser distribution, so availability can be directly felt\nby farmers in various regions.<\/p>\n
This distribution ease impacts increased access for farmers to\nsubsidised fertilisers, making the redemption process easier and without\nsignificant obstacles.<\/p>\n
It is known that Pupuk Indonesia is diversifying strategic raw\nmaterial sources to maintain production stability and national\nfertiliser supply amid rising geopolitical tensions.<\/p>\n
Pupuk Indonesia is diversifying import sources for strategic raw\nmaterials, especially phosphate (P) and potash (K), which are main\ncomponents in NPK fertiliser production and not naturally available in\nIndonesia.<\/p>\n
Meanwhile, potash supplies are sourced from Canada and Laos, which\nare outside the Middle East conflict zone, thus minimising supply\ndisruption risks.<\/p>\n
In addition, sulphur (S) raw materials, partly from Middle Eastern\ncountries such as the United Arab Emirates, Qatar, and Kuwait, have been\nanticipated through alternative supplies from other countries like\nCanada and Kazakhstan. Some sulphuric acid needs can also be met from\ndomestic sources.<\/p>\n
The company is also strengthening raw material stock management by\nmaintaining adequate availability of phosphate, potash, sulphur, and\nsulphuric acid to support the production process. This step also serves\nas mitigation against potential increases in logistics costs due to\nrising global oil prices.<\/p>\n
Furthermore, Yehezkiel stated that the current production capacity of\nthe Pupuk Indonesia Group reaches 14.8 million tonnes per year for\nvarious types of fertilisers. For urea fertiliser specifically, the\ncompany\u2019s production capacity is even able to meet all domestic\nneeds.<\/p>\n
National urea production is also considered relatively independent\nbecause its main raw material, natural gas, can be fulfilled from\ndomestic supplies, with prices and distribution regulated by the\ngovernment.<\/p>\n
With this condition, according to him, the escalation of conflict in\nthe Strait of Hormuz as an important global urea distribution route does\nnot directly impact the national urea supply.<\/p>\n
Even Pupuk Indonesia states that the company is the largest urea\nproducer in the Asia Pacific, Middle East, and North Africa region. With\nthis strong production capacity, we have the capability to keep\nfertiliser supplies optimal for Indonesian farmers.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/pupuk-indonesia-ceo-assures-raw-material-supply-remains-secure-amid-middle-east-turmoil-1775170240", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }