Indef: Indonesia has potential to export up to 2 million tonnes of fertiliser
Indonesia has substantial potential as a fertiliser exporter, particularly urea, with a production capacity of 14.8 million tonnes per year and export potential of around 1.5-2 million tonnes after domestic needs are met.
Jakarta (ANTARA) - Executive Director of the Institute for Development of Economics and Finance (Indef) Esther Sri Astuti assesses that Indonesia has the opportunity to export around 1.5 million to 2 million tonnes of fertiliser when global fertiliser distribution is disrupted due to conflicts in the Middle East.
She stated that this opportunity is supported by the national fertiliser production capacity of approximately 14.8 million tonnes per year, including around 9.4 million tonnes of urea fertiliser.
“Indonesia has substantial potential as a fertiliser exporter, particularly urea, with a production capacity of 14.8 million tonnes per year and export potential of around 1.5-2 million tonnes after domestic needs are secure,” said Esther when contacted by ANTARA in Jakarta on Tuesday.
According to her, the export opportunity is open because Indonesia still has surplus commercial production after domestic needs are fulfilled.
Esther explained that the high national production capacity is the primary factor supporting Indonesia in seizing opportunities in the global fertiliser market.
“The main supporting factor for Indonesia as a fertiliser exporter, particularly urea, is the high national production capacity that exceeds domestic needs,” she said.
In addition, she continued, Indonesia is also supported by the availability of raw materials, high global demand due to supply disruptions, and the efficiency of the fertiliser industry that allows a portion of production to be exported.
She assesses that fertiliser exports can also contribute to strengthening regional food security by helping to meet the needs of other countries when global supplies are disrupted.
Nevertheless, she reminds the government to continue prioritising domestic needs before expanding exports.
“The government must continue to prioritise domestic needs, so that exports are carried out when domestic stocks are secure, maintaining price stability and farmers’ production,” she said.
She added that this step is important so that fertiliser exports not only strengthen Indonesia’s position in the international market but also ensure the sustainability of national agricultural production.
“Domestic farmers must still be prioritised to receive subsidised fertiliser to maintain agricultural productivity,” stated Esther.
Previously, Deputy Minister of Agriculture Sudaryono stated that Indonesia is ready to export around 1.5 million tonnes of fertiliser in line with the disruption of global distribution routes in the Strait of Hormuz due to geopolitical dynamics in the Middle East.