Many Countries Hunt for Urea Fertiliser in Indonesia, Australia Approaches Ministry of Agriculture
Australia is reportedly exploring agricultural cooperation, particularly in fertiliser, with Indonesia. It is said that Australia is interested in importing urea fertiliser from Indonesia. This was revealed from the meeting between Deputy Minister of Agriculture Sudaryono and the Australian Ambassador to Indonesia at the Ministry of Agriculture office on Wednesday (15/4/2026).
Sudaryono stated that the global geopolitical situation, including the impact of the Strait of Hormuz closure, has affected the world’s fertiliser distribution. This is not without reason. Around a third of the global fertiliser supply passes through that route, so disruptions have a significant impact on international fertiliser availability.
“With this disruption, many countries need urea. Indonesia has an advantage because it can produce urea from domestic natural gas, so we do not rely on imports for that commodity,” said Sudaryono in his statement, quoted on Thursday (16/4/2026).
It is mentioned that the current national urea fertiliser production capacity managed by PT Pupuk Indonesia (Persero) reaches around 9.36 million to 9.4 million tonnes per year. In 2026, urea production is targeted at 7.8 million tonnes, with subsidised needs of 6.3 million tonnes and export potential of 1.5 million tonnes.
This surplus is then considered in opening export opportunities to various countries, including Australia.
Nevertheless, Sudaryono emphasised that meeting domestic needs remains the top priority.
“The fertiliser needs for Indonesian farmers are super priority. After that is fulfilled, only then can the remaining production be allocated for export,” he stressed.
Reciprocal Relations
On the other hand, Sudaryono added that interest in Indonesian urea is not only from Australia. But also from several other countries such as India, the Philippines, and Brazil. However, the government remains cautious to avoid promising supplies exceeding national production capacity.
Sudaryono also explained that fertiliser trade relations between Indonesia and Australia are reciprocal. Indonesia, on one side, exports urea, but on the other side also imports raw materials such as phosphate, including DAP (Diammonium Phosphate), from Australia.
“This is a reciprocal relationship. We need each other, the important thing is how we secure national interests while maintaining healthy trade relations,” he said.
Furthermore, he assured that domestic fertiliser availability, especially subsidised fertiliser, is in a safe condition. The high uptake of fertiliser by farmers is said to be an indicator of increasing planting activities in various regions.
“If there are farmers who cannot find fertiliser at kiosks, that is more due to distribution that is running quickly. Within 1-2 days, it is usually available again. That means fertiliser is available and sufficient,” explained Sudaryono.
In the future, the government also plans to rejuvenate old fertiliser factories to increase national production efficiency and capacity, while maximising export opportunities amid high global demand.
With this situation, Indonesia is not only able to maintain national fertiliser resilience but also has the potential to strengthen its position as a fertiliser supplier in the international market.