Prolonged War Could Disrupt Trade, Here is the Trade Minister's Anticipation

Trade Minister Budi Santoso has assured that the government has anticipated potential disruptions to fertiliser raw material supplies amid global trade dynamics. Budi stated that the government is focused on maintaining domestic supply stability through diversifying import sources for raw materials.

“We have already anticipated for raw materials, for example. So, especially those that are imported, we seek alternative markets or goods. The substitution of goods can be taken from countries that have them or the same commodities from other countries,” said Budi in Jakarta on Friday.

According to him, the government has prepared steps to redirect import sources if there are supply obstacles from certain countries.

To date, Indonesia has imported several strategic commodities, including energy and industrial raw materials, from the Middle East region as well as Eurasian countries.

For the fertiliser sector, Budi explained that Indonesia has so far obtained supplies from Eastern European and Central Asian countries, such as Kazakhstan and Uzbekistan.

If there are global distribution disruptions, said Budi, those import sources can be redirected to other countries with similar commodities.

“Actually, we import quite a lot of fertiliser from Eastern Europe, such as from Kazakhstan, Uzbekistan, and other Eurasian countries. That can be redirected,” he clarified.

He added that until now, the government has not received reports of difficulties in fertiliser raw material supplies from state-owned enterprises (BUMNs) operating in the fertiliser sector. This serves as an indicator that supply conditions are still under control.

Nevertheless, Budi emphasised that the government continues to monitor developments in global trade, especially because competition for fertiliser raw materials in the international market is becoming increasingly tight.

Budi hopes that diversifying import sources will be able to maintain national fertiliser availability stability.

“Up to now, there have been no reports from the BUMN side. That means, there are no complaints to us yet,” Budi added.