Pupuk Indonesia Explores Strategic Fertiliser Sector Partnership in Russia
PT Pupuk Indonesia (Persero) is exploring strategic cooperation opportunities relating to the development of a globally scaled ammonia and urea production facility, the Nakhodka Fertilizer Plant Phase 2 (NFP-2), in Primorsky Krai, Russia, being developed by the holding company JSC Ruschem. The exploration is an effort by Pupuk Indonesia to strengthen the diversification of supply sources and broaden the company’s positioning in global assets and supply chains.
The exploration of this cooperative study was marked by the signing of a Memorandum of Understanding (MoU) for a joint study, carried out as part of the 11th Eastern Economic Forum (EEF) in Vladivostok, Russia, on 3 September 2026.
Pupuk Indonesia President Director Rahmad Pribadi said the exploration of the study cooperation with Russia is a strategy to broaden alternative production and supply sources in order to improve the resilience of the national fertiliser supply chain. The initiative also opens up potential access to gas-based ammonia-urea production with a competitive and environmentally friendly raw material cost structure.
“This joint study exploration is one of Pupuk Indonesia’s long-term strategic options to secure access to raw materials and global production capacity. It aligns with Danantara’s direction that Pupuk Indonesia play a greater role in strengthening national food security while expanding its presence in the global fertiliser industry,” Rahmad said.
Minister of Investment and Downstream Industry as well as CEO of Danantara, Rosan P. Roeslani, said the exploration is a concrete follow-up to the meeting between President Prabowo Subianto and Russian Federation President Vladimir Putin on the sidelines of the 11th EEF. The cooperation opens global investment opportunities for Pupuk Indonesia and strengthens raw material and national industrial resilience.
“Pupuk Indonesia’s performance is getting better and more efficient over time, so it has enormous potential to invest in Vladivostok with the Russian side. We hope this will be one of the strategic steps that can strengthen our raw material resilience and also our industrial resilience,” he said.
Strategic Value of the Cooperation
Rahmad Pribadi said Pupuk Indonesia’s experience in processing gas for ammonia and urea production is one of its assets in assessing the cooperation opportunity in Russia. That experience is considered relevant to the characteristics of the NFP project, which is based on natural gas.
NFP is a globally scaled industrial complex project for methanol, ammonia and urea in Primorsky Krai, Eastern Russia, owned by JSC Ruschem. The facility is planned to have a production capacity of around 1.8 million tonnes of methanol, 2 million tonnes of ammonia, and 3.5 million tonnes of urea per year, with a commercial operation target of around 2030.
In terms of location, the NFP project also holds strategic value. The presence of the Port of Vladivostok in Primorsky, facing the Pacific Ocean, opens opportunities for Pupuk Indonesia to broaden its access to the Asia-Pacific market, which has long been one of the important regions for the company’s trading activities.
“This is interesting because Vladivostok faces the Pacific, a region that has indeed been a strategic market for Pupuk Indonesia,” Rahmad said.
These advantages are among Pupuk Indonesia’s considerations in viewing the opportunity to develop NFP-2 as part of efforts to strengthen the company’s competitiveness and supply chain resilience.
Commitment to a Comprehensive Study
The signing of the MoU marks the initial stage for Pupuk Indonesia to comprehensively assess the potential development of NFP-2. Under this cooperation, both parties will conduct a feasibility study and due diligence on the project’s potential.
The study will cover, among other things, technical aspects, project economics, certainty of raw material supply, financing structure, project risks, as well as compliance with applicable laws and regulations. This approach forms part of Pupuk Indonesia’s principles in evaluating every development opportunity.