Middle East Conflict Escalates, Pupuk Indonesia's Raw Fertiliser Stock Remains Secure

Jakarta, Kompas.com - PT Pupuk Indonesia (Persero) said that its stock of raw materials is sufficient to support fertiliser production for up to six months ahead. Corporate Secretary Yehezkiel Adiperwira said that the war in the Hormuz Strait area between Israel and the United States against Iran, which has closed the Hormuz Strait, does not have a direct impact on the state-owned fertiliser company. ‘The war in the Hormuz Strait area does not have a significant direct impact on Pupuk Indonesia,’ Yehezkiel said in Cikini, Jakarta, on Friday, 6 March 2026. The production of urea fertiliser is deemed entirely safe from the war’s impact because its feedstock is natural gas with supply secured domestically. Meanwhile, NPK fertiliser is produced from Nitrogen (N), Phosphorus (P), and Potassium (K). The feedstocks P and K still rely on imports. Thus, Indonesia does not rely on imports from Gulf countries affected by the Israel–US war against Iran. Meanwhile, potassium supplies come from Belarus, Russia, and Canada. ‘So operationally, thankfully we are still safe and our raw material stocks remain available for six to seven months ahead,’ Yehezkiel explained. Nevertheless, Yehezkiel acknowledged that Pupuk Indonesia faces rising global oil prices. Transport costs are not linked to imports from overseas as Pupuk Indonesia does not plan to procure fertiliser feedstock for the next six months. The stock of raw materials is considered sufficient to meet production through to September 2026. ‘We do not have any procurement plans yet,’ Yehezkiel said.