Indonesian Political, Business & Finance News

Pupuk CEO: Urea Fertiliser Exports Conducted After Domestic Needs Are Secure

| Source: ANTARA_ID Translated from Indonesian | Trade
Pupuk CEO: Urea Fertiliser Exports Conducted After Domestic Needs Are Secure
Image: ANTARA_ID

Jakarta (ANTARA) - PT Pupuk Indonesia (Persero)’s President Director, Rahmad Pribadi, stated that urea fertiliser exports are conducted as long as domestic needs are fulfilled, with the primary priority being to maintain availability and supply stability for the national agricultural sector.

“The important thing is that Indonesia is secure first, then exports,” Rahmad said when met after a working meeting with the House of Representatives Commission XI in Jakarta on Thursday.

He explained that in the current situation, Indonesia is still capable of exporting urea fertiliser to help meet the needs of neighbouring countries facing supply shortages amid the closure of the Strait of Hormuz due to global turmoil in the Middle East.

Countries that have been destinations for Indonesian urea fertiliser exports include Australia, India, and several other countries in the region, but Rahmad emphasised that exports are carried out while still prioritising domestic interests.

Rahmad mentioned that the national urea production capacity reaches 8.8 million tonnes operationally, although the installed capacity is 9.4 million tonnes.

According to him, even though global urea prices have risen sharply from around $400 per tonne to $800 per tonne, Indonesia remains secure because most needs are met from domestic production.

Regarding the export quota, Pupuk Indonesia stated that the amount is around 1.5 million tonnes, but distribution remains flexible following domestic supply conditions.

Previously, Deputy Minister of Agriculture Sudaryono revealed that several countries are now targeting fertiliser from Indonesia as a result of the geopolitical crisis in the Middle East, which has triggered disruptions in the global urea supply.

“They want to import fertiliser from Indonesia, no matter how much they pay,” the Deputy Minister said after opening the Asia Fertiliser Conference 2026 in Nusa Dua, Badung Regency, Bali, on Wednesday (1/4/2026).

The Deputy Minister disclosed that there are six countries wanting to import fertiliser from Indonesia, including India, Brazil, Australia, and the Philippines.

The conflict in the Middle East has impacted global trade routes through the Strait of Hormuz, including fertiliser supplies, with around 30 percent of the world’s fertiliser passing through this vital route.

As a result, there has been a significant price increase; for example, based on Trading Economics data accessed on Wednesday (1/4/2026) at 13:00 WITA, the urea price per tonne reached $690, surging from the range of $350-380 at the beginning of January 2026.

Sudaryono explained that Indonesia has great potential to become a stabiliser for the global fertiliser supply amid this geopolitical crisis after the government ensures that domestic agricultural fertiliser needs are sufficient.

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