Indonesian Political, Business & Finance News

Indonesia Poised to Export 1.5 Million Tonnes of Fertiliser to the Middle East

| Source: TEMPO_ID_BISNIS Translated from Indonesian | Trade

The government claims that Indonesia is ready to export fertiliser by capitalising on global market opportunities arising from disruptions to international distribution routes in the Strait of Hormuz in the Middle East region. “We have plans within this year to have stock and export a total of 1.5 million tonnes of fertiliser,” said Deputy Minister of Agriculture Sudaryono in a statement in Jakarta on Friday, as quoted from Antara. He explained that currently, one-third of the world’s fertiliser distribution passes through the Strait of Hormuz, with most of the supply originating from that region. However, disruptions in the area have caused many countries to face difficulties in fertiliser supply, particularly urea fertiliser. According to Sudaryono, this situation has led many countries around the world to require urea supplies from Indonesia. “We are one of the largest urea producers in the world,” he said. He revealed that several countries have also communicated with the Indonesian government to meet their fertiliser needs. The governments of India, the Philippines, and Australia have even expressed direct interest. “The Indian government has contacted us. I have also received letters from the governments of the Philippines and Australia. They are ready to buy at any price,” Sudaryono stated. The Deputy Minister of Agriculture then explained that previous plans to close several domestic fertiliser plants have now been cancelled. This is because the increasing global demand has opened 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.” Furthermore, Sudaryono outlined that he has reported these developments to President Prabowo Subianto, including the potential communications from other countries’ leaders regarding fertiliser needs. Over the next year, Sudaryono said, Pupuk Indonesia Holding Company (PIHC) has targeted fertiliser exports to reach 1.5 million tonnes. However, the government also ensures that fertiliser for domestic farmers remains the top priority before proceeding with exports. “And certainly, the fertiliser needs of farmers in the country will be fulfilled first. We will not tamper with that,” said Sudaryono, who is also the General Chairman of the Indonesian Farmers Harmony Association (HKTI). The urea fertiliser export plan was previously conveyed by the President Director of PT Pupuk Indonesia (Persero), Rahmad Pribadi. Currently, Indonesia is still able to export urea fertiliser to help meet the needs of neighbouring countries facing supply limitations amid the closure of the Strait of Hormuz due to global turmoil in the Middle East. Rahmad mentioned that the destination countries for Indonesian urea fertiliser exports so far include Australia, India, and the Philippines. He also noted that the national urea fertiliser production capacity reaches 8.8 million tonnes operationally, although the installed capacity is 9.4 million tonnes. Global urea prices have now surged from around US$400 per tonne to US$800 per tonne. Meanwhile, Indonesia remains secure because most of its needs are met by domestic production. Regarding the export quota, Pupuk Indonesia stated that it is around 1.5 million tonnes, but distribution remains flexible following domestic supply conditions. “The important thing is that Indonesia is secure first, then export,” said Rahmad on Thursday, 2 April 2026.

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