Fertiliser stocks secure, Purbaya states Indonesia ready to export amid global crisis

Jakarta (ANTARA) - Finance Minister Purbaya Yudhi Sadewa has stated that the national fertiliser stock is in a safe condition and even ready for export amid a fertiliser production crisis affecting several countries due to the conflict in the Middle East. The upfront fertiliser subsidy mechanism has also helped alleviate the burden on producers, thereby maintaining the performance of national fertiliser production. “Because we pay the fertiliser subsidy upfront, more than Rp20 trillion at the beginning of the year. So their cost of capital decreases, they don’t need to borrow from the bank,” Purbaya said during a media briefing in Jakarta on Friday. As information, the government implements an upfront fertiliser subsidy payment scheme for raw material procurement. The funds are provided before the production and distribution process, based on the difference between the commercial price and the Highest Retail Price (HET). “They can operate quickly and more efficiently. If they have money, it’s easy to buy this and that. So now our production, according to the Minister of Agriculture, is already high and even ready for export when the world is confused about fertiliser.” Purbaya explained that Indonesia’s fertiliser production conditions are in stark contrast to several other countries affected by geopolitical conflicts. Tensions from the Iran-US conflict have disrupted the global supply chain. Disruptions in distribution routes in the Strait of Hormuz and surges in natural gas prices have caused fertiliser production costs, especially urea, to rise sharply in many countries. This has triggered fertiliser shortages in the global market. Previously reported, Minister of Agriculture Andi Amran Sulaiman stated that there are import requests for urea fertiliser from four countries, namely India, Australia, the Philippines, and Brazil, amid global supply dynamics. He mentioned that India has requested around 500,000 tonnes of urea fertiliser. Meanwhile, Australia has agreed to an initial shipment of 250,000 tonnes.