Global Demand Rises, Indonesia Prepares to Export 1.5 Million Tonnes of Fertiliser

Deputy Minister of Agriculture (Wamentan), Sudaryono, has revealed that Indonesia is facing a significant opportunity in the global fertiliser sector due to disruptions in international distribution routes, particularly in the Strait of Hormuz.

According to Sudaryono, currently one-third of the world’s fertiliser distribution passes through the Strait of Hormuz, with the majority of supplies originating from that region. However, the disruptions in the area have caused many countries to face difficulties in fertiliser supplies, especially urea.

“This situation has led many countries around the world to now require urea supplies from Indonesia. We are one of the largest urea producers in the world,” stated Wamentan Sudaryono in a written statement in Jakarta on Thursday (9/4).

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 expressed their interest directly.

“The Government of India has already 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, Wamentan Sudaryono explained that the previous plan to close several domestic fertiliser plants has now been cancelled. This is due to the increasing global demand, which opens up broader export opportunities for Indonesia.

“The 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.

Wamentan Sudaryono also explained that he has reported this development to President Prabowo Subianto, including the potential communications from other countries’ leaders regarding fertiliser needs.

Over the next year, Pupuk Indonesia Holding Company (PIHC) has targeted fertiliser exports to reach 1.5 million tonnes. Nevertheless, the government ensures that the fertiliser needs for domestic farmers remain the top priority before proceeding with exports.

“We have a plan for this year where we have stock and can export a total of 1.5 million tonnes of fertiliser. And certainly, the fertiliser needs for farmers in the country will be fulfilled first. We will not tamper with that,” Sudaryono emphasised.