Global Urea Supply Disrupted, Pupuk Indonesia Prepares to Export 2 Million Tonnes

JAKARTA – PT Pupuk Indonesia (Persero) is opening opportunities to export up to 2 million tonnes of urea amid global supply disruptions due to geopolitical conflicts.

Pupuk Indonesia’s President Director, Rahmad Pambudi, stated that the company’s production capacity reaches 9.4 million tonnes per year. Of this amount, approximately 1.5 million to 2 million tonnes are allocated for export, depending on domestic needs.

“We produce 9.4 million tonnes. From that 9.4 million tonnes, we can export between 1.5 to 2 million tonnes depending on domestic needs,” Rahmad said at the Ministry of Agriculture in Jakarta on Monday (30/3/2026).

This situation is pressuring global supplies, particularly for countries reliant on imports from that region, such as India, Australia, and the United States.

“America, for example, certainly imports part of its urea needs from the Middle East (West Asia),” Rahmad said.

Amid this situation, Indonesia’s position is different. The availability of domestic raw materials keeps urea production stable. Ammonia, the main ingredient, comes from domestic natural gas, so it is not directly affected by global supply chain disruptions.

Rahmad assessed that this condition opens opportunities for Indonesia to play a larger role in the global market.

“Amid the turmoil, Indonesia can become the saviour,” he said.

“Usually in global situations, Indonesia’s position is vulnerable. But specifically regarding fertiliser, the situation is reversed. Indonesia can become the saviour,” he added.

The conflict in the Middle East is also driving up global oil prices. Restrictions on distribution from major producing countries are pressuring the global energy market.

The situation is becoming more complex following the United States increasing its military presence in the region, while the Houthi group in Yemen has declared support for Iran.