Geopolitical Turmoil, 20% Fertilizer Subsidy to Continue

JAKARTA, KOMPAS.com - Indonesian Agriculture Minister Andi Amran Sulaiman said the 20 per cent fertilizer discount remains in force even amid the war between Iran and Israel and the United States and the closure of the Hormuz Strait. The Hormuz Strait has become a trade route for oil, gas, and petrochemical products such as urea from Gulf states. “(The fertilizer subsidy) continues, continues. It continues – that is the greatness of our president,” Amran said at the Ministry of Agriculture (Kementan) office in Jakarta, Friday (6 March 2026). He said they had prepared scenarios to anticipate the difficult conditions since President Prabowo Subianto was inaugurated in October 2024. Regarding fertiliser raw materials that are still heavily imported, the government has found alternatives that do not rely on Gulf supply. “Mainly fertiliser raw materials, right? But the alternative is we take from Russia, Laos, Australia. We have calculated everything,” Amran said. According to Amran, the 20 per cent fertilizer subsidy can motivate farmers to keep planting. Moreover, the government has prepared a food-security scenario to face geopolitical turmoil and El Niño weather anomalies that cause long droughts and La Niña which leads to persistent rainfall. Supporting infrastructure such as irrigation and pumping machines has also been prepared to ensure water supply for agricultural needs. “So now our farmers, alhamdulillah, we visit everywhere, they are happy. This fertiliser maybe the peak of farmer happiness,” Amran said. Earlier, Amran noted that urea supplies for agricultural needs in January-February 2026 rose by 40 per cent. While acknowledging that global conditions are likely to push up fertiliser raw material prices, he said supply is safe because it does not depend on the Middle East. “Yes, Russia is safe. There are many sources for us. So no problem,” Amran said. Quoting Kompas.id, in 2024 Indonesia imported 7,526.6 thousand tonnes of fertiliser from abroad.