Pupuk Indonesia CEO: Fertiliser Stock Unaffected by Strait of Hormuz Conflict
Jakarta (ANTARA) - The President Director of PT Pupuk Indonesia (Persero), Rahmad Pribadi, has assured that the national fertiliser stock remains unaffected amid the conflict in the Strait of Hormuz in the Middle East, which is disrupting global trade routes.
“Alhamdulillah, the stock is safe; we have 1.29 million tonnes in stock, and all factories are operating well. This means we will continue to maintain it at this level; there are no problems,” Rahmad said during a working meeting with Commission IV of the House of Representatives (DPR RI) in Jakarta on Tuesday.
Rahmad highlighted the importance of the Strait of Hormuz as the main route for global fertiliser distribution, which accounts for around 30 per cent of worldwide fertiliser trade each month.
However, Indonesia is not significantly impacted thanks to the long-established self-sufficiency in the national fertiliser industry.
“Up to today, even though the world is in turmoil, Indonesian fertiliser can actually serve as a saviour for the global food ecosystem,” he explained.
He noted that several major countries such as Brazil, India, Australia, Thailand, and the United States are beginning to feel the effects of global fertiliser supply disruptions. Meanwhile, Indonesia remains in a safe and stable condition.
The resilience of the national agricultural sector is once again demonstrating its strength amid global dynamics, including potential disruptions to global fertiliser distribution due to the Strait of Hormuz conflict. The government has ensured that the national fertiliser stock remains safe and distribution to farmers proceeds smoothly.
According to him, this success is concrete proof of the directives from President of the Republic of Indonesia Prabowo Subianto, which have been optimally executed by Agriculture Minister Andi Amran Sulaiman along with his team, as well as the full support from Commission IV of the DPR RI, proceeding very appropriately.
Rahmad emphasised that the public should feel proud and reassured about the situation. In his view, under the leadership of President Prabowo and Minister Amran, the entire national food ecosystem is managed in an integrated and responsive manner to global challenges.
“We should feel proud and happy under the leadership of President Prabowo, which has been extraordinarily executed by the Ministry of Agriculture and, of course, with the support from Commission IV of the DPR RI; we can all sleep soundly because our entire food ecosystem is safe,” Rahmad stated.
Furthermore, he said that the government has implemented significant changes in fertiliser governance since 2025. These reforms were carried out through two main regulations, namely Presidential Regulation Number 6 of 2025 and Presidential Regulation Number 113 of 2025.
“Under the instructions and leadership from the Minister of Agriculture and, of course, the support from Commission IV, in 2025 we have already made quite significant changes in governance. The first is Presidential Regulation Number 6 of 2025, which essentially is deregulation,” he explained.
“In the past, fertiliser was available in factories and warehouses, but farmers couldn’t redeem it because the regulations were convoluted. This has been simplified so that if the Minister instructs us, we can directly distribute it to farmers,” Rahmad added.
In addition, Presidential Regulation Number 113 of 2025 provides room for Pupuk Indonesia to revitalise factories and improve production efficiency. As a result, fertiliser prices have become more affordable for farmers.
“The essence of it (Presidential Regulation Number 113 of 2025) is to give Pupuk Indonesia the space to rejuvenate and revitalise factories and operate according to efficiency principles. The result impacts affordability because the fertiliser price HET has been reduced by 20 per cent,” he added.
This ease of access and price reduction for fertiliser has directly impacted the increased uptake of fertiliser by farmers throughout 2025 to 2026. This condition also contributes to the increase in national agricultural production.
“Because farmers can easily redeem fertiliser and the price has dropped, fertiliser redemption in 2025 and 2026 continues to rise. This is also evident from the increasing absorption of unmilled rice by Bulog. This means there is a direct link between fertiliser and agricultural production,” said Rahmad.
He also emphasised that fertiliser is a crucial input in enhancing agricultural productivity, so fertiliser subsidy policies have a direct impact on production and economic stability.
“Fertiliser is a critical agro input, a very important input for agricultural productivity. Unlike consumptive subsidies, fertiliser subsidies are production subsidies. If fertiliser uptake increases, it will certainly boost agricultural productivity and help maintain inflation,” he said.