Indonesian Political, Business & Finance News

Iran–Israel War: Indonesia's Fertiliser Stock Sufficient

| Source: TEMPO_ID_BISNIS Translated from Indonesian | Economy

PT Pupuk Indonesia (Persero) has assured that the national fertiliser supply remains safeguarded amid the Iran–Israel war. Pupuk Indonesia’s Corporate Secretary Yehezkiel Adiperwira said the company has production capacity and stockpiles of raw materials adequate to maintain fertiliser supply for farmers.

“In the midst of the geopolitical dynamics taking place, we are ensuring the national fertiliser supply remains safe so that farmers can continue planting without worrying about fertiliser availability,” Yehezkiel was quoted as saying by Antara, Saturday, 7 March 2026.

He noted that currently Pupuk Indonesia Group’s production capacity stands at 14.5 million tonnes per year for various fertiliser types. Specifically for urea fertiliser, Pupuk Indonesia’s production capacity can meet the entire domestic demand.

Fundamentally, national urea production also maintains a high degree of self-sufficiency because its main raw material—natural gas—can be supplied domestically with the supply and price already regulated by the government.

Thus, although escalation of conflict in the Strait of Hormuz occurs, he said, this does not directly affect national urea fertiliser supply. “Pupuk Indonesia is the largest urea producer in the Asia-Pacific, the Middle East, and North Africa region. With that strong production capacity, we have the ability to keep fertiliser supply optimal for Indonesian farmers,” he said.

In addition to production capacity, Pupuk Indonesia strengthens supply chain resilience through diversification of strategic fertiliser raw material sources that are still imported. Some fertiliser raw materials are not naturally available in Indonesia, such as phosphate (P) and potassium (K), which are important components in NPK fertiliser production.

Currently, Yehezkiel said Pupuk Indonesia obtains phosphate (P) supplies from North African countries such as Morocco, Tunisia, and Algeria. Meanwhile, potassium (K) supplies come from Canada and Laos, which are outside the Middle East conflict zone, so the risk of supply disruption can be minimised.

As for other fertiliser raw materials that could be directly affected by the Iran–Israel war escalation, sulphur (S) comes from the United Arab Emirates, Qatar, and Kuwait. Nevertheless, sources of sulphur (S) for Pupuk Indonesia are also available from other countries, such as Canada, so the risk of supply disruption can be anticipated.

Beyond diversifying raw material sources, Pupuk Indonesia is also strengthening raw material stock management by maintaining adequate supplies of phosphate, potassium, and sulphur, currently at levels sufficient to support production.

This stock management strengthening is also an anticipatory step against potential increases in logistics costs due to rising global oil prices. Supported by strong production capacity, material diversification, and reliable stock management, the state-owned company is optimistic about maintaining national fertiliser supply stability.

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