Domestic Supply Surplus: Indonesia's Fertiliser Production Eyed by Other Countries

JAKARTA - Fertiliser supply has become one of Indonesia’s flagship commodities. This is because Indonesia is currently recording a production surplus volume of up to 1.5 million tonnes.

On the other hand, fertiliser supplies in many countries around the world are being impacted by the conflict occurring in the Middle East.

Indonesia is considered capable of ensuring that domestic fertiliser supplies remain secure amid the Middle East geopolitical crisis.

As an illustration, around a third of the world’s fertiliser trade passes through that route, including urea and ammonia, which are the main components of plant nutrients.

PT Pupuk Indonesia (Persero) continues to strengthen its business foundations amid pressures on the global fertiliser supply chain, with the main focus on maintaining domestic supplies while capitalising on export opportunities.

This strategy is key for the company in supporting national food security while expanding Indonesia’s role in the global market.

Pupuk Indonesia has relatively strong resilience against global supply disruptions.

This large production capacity is supported by the comprehensive transformation carried out by the company, from improving subsidy policies to governance of distribution and financing.

President Director of Pupuk Indonesia, Rahmad Pribadi, stated that fulfilling domestic needs remains the top priority.

Member of Commission IV of the Indonesian House of Representatives from the National Mandate Party (PAN) Faction, Herry Dermawan, assessed that the national fertiliser supply condition is relatively strong, one of which is supported by raw material resilience.

This is inseparable from the role of Pupuk Indonesia and the government in ensuring that domestic fertiliser supplies remain secure.

Thanks to this, amid disruptions to global fertiliser supplies, Indonesia is able to maintain the Highest Retail Price (HET) for subsidised fertiliser, which has been reduced by 20 per cent in 2025.