Pupuk Indonesia Ensures Fertiliser Stocks Remain Secure Despite Turmoil in the Middle East
PT Pupuk Indonesia (Persero) has assured that national fertiliser supplies remain safeguarded amid geopolitical turmoil in the Middle East. The company’s Corporate Secretary, Yehezkiel Adiperwira, said the group has adequate production capacity and stockpiles of raw materials to maintain fertiliser supplies for farmers.
“Amid the geopolitical dynamics at play, we are ensuring national fertiliser supplies stay secure so that farmers can continue planting without worrying about fertiliser availability,” he said.
He noted that the current production capacity of the Pupuk Indonesia Group stands at 14.5 million tonnes per year for various types of fertilisers. For urea, he added, production capacity can even meet domestic demand in full.
Fundamentally, national urea production also maintains a degree of self-sufficiency because the main feedstock—natural gas—can be sourced domestically with supplies and prices regulated by the Government, he added. As a result, even with escalation of tensions in the Strait of Hormuz, the situation is not expected to have a direct impact on national urea supplies.
“Pupuk Indonesia is the largest producer of urea in the Asia-Pacific region, the Middle East, and North Africa. With such strong production capacity, we have the ability to keep fertiliser supplies optimal for Indonesian farmers,” he said.
In addition to production capacity, Pupuk Indonesia is strengthening supply chain resilience through diversification of strategic fertiliser feedstock that are still imported. Some fertiliser feedstocks are not naturally available in Indonesia, such as phosphate (P) and potassium (K) which are key components of NPK fertiliser production.
Currently, he said, Pupuk Indonesia sources phosphate from North African countries like Morocco, Tunisia, and Algeria. Potassium supplies come from Canada and Laos, which are outside the Middle East conflict zone, thereby minimising disruption risk.
Other fertiliser feedstocks that could be directly affected by the Middle East escalation are sulphur (S), sourced from the United Arab Emirates, Qatar, and Kuwait. Nevertheless, sulphur supplies for Pupuk Indonesia are also available from other countries, such as Canada, so disruption risks can be anticipated.
Beyond diversification of feedstock sources, Pupuk Indonesia is strengthening stock management by maintaining adequate supplies of phosphate, potassium, and sulphur to support production. This enhanced stock management also serves as a proactive measure against potential rises in logistics costs due to higher global oil prices.
Backed by strong production capacity, diversified feedstock sources, and reliable stock management, the state-owned company is optimistic it can maintain stability of national fertiliser supplies.