Indonesian Political, Business & Finance News

Pupuk Indonesia Boss Reveals 1.29 Million Tonne Stock: Situation Secure

| Source: TEMPO_ID_BISNIS Translated from Indonesian | Agriculture

Director General of PT Pupuk Indonesia (Persero), Rahmad Pribadi, has assured the availability of fertiliser supplies amid escalating tensions in the Middle East. “We can all sleep soundly because our entire food ecosystem is secure. Bulog has confirmed it’s safe, and on the fertiliser side, we can emphasise that the situation is secure,” Rahmad stated during a working meeting with Commission IV of the DPR on Tuesday, 7 April 2026.

Rahmad stated that PT Pupuk Indonesia currently holds 1.29 million tonnes of fertiliser stock. In addition, he confirmed that all production facilities are operating well.

He then touched on the closure of the Strait of Hormuz in Iran, a key global distribution route for fertiliser, particularly urea and sulphur. Rahmad explained that approximately 4 million tonnes of fertiliser are distributed through the Strait of Hormuz each month, comprising 1.5 million tonnes of urea, 1.5 million tonnes of sulphur, and the remainder other types of fertiliser.

Rahmad stated that Indonesia should take pride in the fact that, thanks to industrial development since the New Order era, Pupuk Indonesia plays a role in the global food ecosystem amid Middle East escalations. Meanwhile, five countries active in the agricultural sector are currently disrupted: Brazil, India, Australia, Thailand, and the United States.

Amid the food crisis affecting those countries, Rahmad stated that Indonesia’s food ecosystem is in a secure condition. Indicators include fertiliser availability and the implementation of paddy or rice procurement.

He explained that Pupuk Indonesia is currently building seven factories. One of these factories has already been inaugurated, three are under construction, and the other three are in the preparation stage for construction.

The revitalisation of factories impacts the affordability of fertiliser prices, especially as the government has reduced the highest reference price (HET) by 20 percent. This price reduction, according to Rahmad, has led to increased redemption rates of subsidised fertiliser in 2025 and throughout this year.

This increase in fertiliser purchases, he said, also affects farmers’ performance. He mentioned the rising paddy absorption through Bulog. “This proves there is a direct link between fertiliser and agricultural production.”

Furthermore, Rahmad shared that he frequently exchanges data with the Director General of Perum Bulog to measure the effectiveness of fertiliser redemption. From that data, it is known that fields in a certain area can harvest around 70 days after redeeming fertiliser.

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