Petrokimia Gresik Secures Sulphur Supply Amid Middle East Geopolitical Dynamics
Petrokimia Gresik, a member of the Pupuk Indonesia holding, is strengthening its strategy to secure sulphur supplies as a strategic commodity for the national fertiliser and chemical industries, amid geopolitical dynamics in the Middle East.
This was stated by Petrokimia Gresik’s President Director, Daconi Khotob, while speaking at the international Argus Fertiliser Asia Conference 2026 held in Bali.
He emphasised that these efforts are part of the company’s commitment to maintaining national food security and supporting domestic industrial self-reliance.
“Around 33 percent of global sulphur trade, or 20 million tonnes per year, comes from the Persian Gulf region, and Indonesia still imports more than 75 percent of its sulphur needs from the Middle East,” Daconi said in his statement on Wednesday, 1 April 2026.
He noted that geopolitical conflicts and disruptions to global logistics routes could affect global sulphur prices and supplies.
On the other hand, national sulphuric acid needs continue to rise, currently reaching around 19 million tonnes per year, with the largest contributions coming from the fertiliser sector and mineral downstream industries, particularly nickel.
This situation positions Indonesia as one of the world’s major sulphur demand centres, making sulphur a strategic commodity in supporting national food and industrial resilience.
Daconi explained that Petrokimia Gresik is not only part of the sulphur supply chain but also a solution for the national industry. The company has a sulphuric acid plant with a production capacity of 1.8 million tonnes per year, integrated with fertiliser production processes and other chemical products.
“We have facilities for processing sulphur into sulphuric acid that are integrated with fertiliser production and chemical product processes. Through these facilities, Petrokimia Gresik also contributes to strengthening the supply of domestic industrial raw materials,” Daconi said.
Furthermore, Daconi conveyed that global geopolitical dynamics affecting sulphur supply and prices demand that the company strengthen its raw material supply security strategy through supply chain enhancements and optimisation of domestic production capacity.
To this end, Petrokimia Gresik is implementing several strategic steps, including diversifying sulphur supply sources, strengthening long-term contracts to maintain supply and price stability, and enhancing raw material storage and distribution infrastructure.