Agriculture Minister States Indonesia Ready to Export 1.5 Million Tonnes of Fertiliser Amid Hormuz Closure
The current situation has led many countries worldwide to require urea supplies from Indonesia. We are one of the world’s largest urea producers.
Jakarta (ANTARA) - Deputy Agriculture Minister Sudaryono stated that Indonesia is prepared to export 1.5 million tonnes of fertiliser, taking advantage of global market opportunities due to disruptions in international distribution routes in the Strait of Hormuz in the Middle East region.
“We have a plan for this year to have stock and be able to export a total of 1.5 million tonnes of fertiliser,” said the Deputy Minister in a statement in Jakarta on Friday.
According to Deputy Minister Sudaryono, currently one-third of the world’s fertiliser distribution passes through the Strait of Hormuz, with most of the supply originating from that region.
However, disruptions in that area have caused many countries to face difficulties in fertiliser supplies, particularly urea.
“This situation has made many countries around the world now need urea supplies from Indonesia. We are one of the world’s largest urea producers,” said the Deputy Minister.
Sudaryono mentioned that several countries have communicated with the Indonesian government to meet their fertiliser needs. The governments of India, the Philippines, and Australia have even directly expressed their interest.
“The Government of India has contacted us. I have also received letters from the Governments of the Philippines and Australia. They are ready to buy at any price,” he said.
Furthermore, the Deputy Minister explained that previous plans to close several domestic fertiliser plants have now been cancelled. This is due to the increasing global demand that opens up broader export opportunities for Indonesia.
“Fertiliser plants that were previously planned to be shut down, but now they won’t be. Because it turns out the demand is very high,” he clarified.
He also mentioned that he has reported these developments to President Prabowo Subianto, including potential communications from other countries’ leaders regarding fertiliser needs.
In the coming year, the Deputy Minister continued, Pupuk Indonesia Holding Company (PIHC) has targeted fertiliser exports to reach 1.5 million tonnes. Nevertheless, the government ensures that domestic farmers’ fertiliser needs remain the top priority before proceeding with exports.
“And certainly, the fertiliser needs of farmers in the country will definitely be fulfilled first. We will not tamper with that,” emphasised Deputy Minister Sudaryono, who is also the General Chairman of the Indonesian Farmers Harmony Association (HKTI).
Previously, President Director of PT Pupuk Indonesia (Persero) Rahmad Pribadi stated that urea fertiliser exports would continue as long as domestic needs are met, with the primary priority being to maintain availability and stability of supplies for the national agricultural sector.
In the current conditions, Indonesia is still capable of exporting urea fertiliser to help meet the needs of neighbouring countries facing supply limitations amid the closure of the Strait of Hormuz due to global unrest in the Middle East.
Rahmad mentioned that the destination countries for Indonesian urea fertiliser exports have included Australia, India, and the Philippines.
He also noted that the national urea fertiliser production capacity reaches 8.8 million tonnes operationally, although the installed capacity is 9.4 million tonnes.
According to him, even though global urea prices have risen sharply from around 400 US dollars per tonne to 800 US dollars per tonne, Indonesia remains secure because most needs are met from domestic production.
Regarding the export quota, Pupuk Indonesia stated that it is around 1.5 million tonnes, but distribution remains flexible following domestic supply conditions.
“The important thing is Indonesia is secure first, then export,” said Rahmad when met after a working meeting with Commission XI of the House of Representatives in Jakarta on Thursday (2/4).