Indonesian Political, Business & Finance News

Hormuz Strait Closure: Minister Amran Addresses Urea Fertiliser Outlook

| Source: CNBC Translated from Indonesian | Agriculture

Jakarta — Geopolitical tensions in the Middle East culminating in the closure of the Hormuz Strait have sparked concerns over potential disruptions to global fertiliser supplies. However, the government has assured the public that domestic urea requirements for the national agricultural sector remain under control.

Agriculture Minister Amran Sulaiman has assured that fertiliser distribution for domestic needs continues smoothly, despite the closure of the strategic Hormuz Strait as a result of the conflict between Iran, Israel, and the United States.

“There is no disruption; the fertiliser supply is secure and has already arrived,” Amran said when met at the Agriculture Ministry’s office in Jakarta on Tuesday (3 March 2026).

The Hormuz Strait is known as the primary shipping route for urea from Gulf nations, including Qatar, Iran, Saudi Arabia, the United Arab Emirates, and Bahrain. Additionally, these waters hold a crucial role as a strategic passage for global oil and gas trade.

Nevertheless, Amran stated that national fertiliser stocks are in safe condition. In fact, the realisation of foreign supply throughout January to February 2026 recorded significant growth.

According to him, fertiliser imports in the first two months of this year rose by as much as 40% compared to the previous period. This means the supply had been secured before the conflict escalated further.

However, Amran did not dismiss the downstream impacts of the conflict. He anticipated that global pressure could potentially drive up the prices of fertiliser raw materials.

“It is almost certain that the price of raw materials could rise, including fertiliser,” he said.

Despite potential price increases, the government believes the risk of supply disruption is relatively manageable because Indonesia does not depend on a single region alone. Indonesia’s fertiliser import sources are spread across several major countries.

Amran named Canada, China, and Russia as Indonesia’s primary fertiliser suppliers. With such diversification, the government is optimistic that domestic needs will continue to be met.

“Yes, Russia is secure. We have many sources. So there is no problem,” he said.

For information, Iran announced the closure of the Hormuz Strait. The country now threatens that all ships attempting to pass through it will be shot at. The statement was made by a commander in Iran’s Revolutionary Guards Corps (IRGC).

“The Strait is closed. If anyone attempts to pass through it, the heroes of the Revolutionary Guards and the regular navy will burn those ships,” said Ebrahim Jabari, a senior adviser to the IRGC’s Supreme Commander, on Tuesday (3 March 2026).

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