Pupuk Indonesia: Exports conducted after domestic needs are met

The principle is to fulfil domestic needs first. PT Pupuk Indonesia (Persero) has confirmed that fertiliser exports to Australia, along with planned shipments to several other countries, will not disrupt supply for domestic farmers because national demand remains the top priority. President Director of PT Pupuk Indonesia Rahmad Pribadi stated that exports are carried out after national fertiliser requirements are met, in line with the directive of President Prabowo Subianto. “The principle is to fulfil domestic needs first. For exports, because our industry is designed for export and the President’s directive is that if our warehouses are full of fertiliser, we must not let Indonesia’s friends suffer from a lack of fertiliser,” Rahmad said in a press statement in Brisbane, Australia, on Tuesday. Rahmad explained that Indonesia has a production capacity that exceeds domestic demand. This condition means the national fertiliser industry has a structural surplus, so a portion of production is indeed designed for the export market. According to him, exports are conducted by utilising the 2026 production surplus, thus not affecting domestic urea needs. Indonesia has a larger fertiliser production capacity compared to national requirements, so a portion of production is designed for the export market. Based on Pupuk Indonesia data, the urea export potential from Pupuk Indonesia Holding Company (PIHC) is 1.5 million tonnes in 2026, with the primary commitment remaining on domestic needs. National urea demand is estimated to reach 6.3 million tonnes per year in 2026, while Pupuk Indonesia’s urea production target reaches 7.8 million tonnes. “We have a capacity that is indeed larger than our farmers’ needs. This surplus is not because of a crisis, then we export. But the structural design of the fertiliser industry in Indonesia is partly export-oriented,” he said. This week, 47,250 tonnes of urea fertiliser from Indonesia arrived at the Port of Brisbane, Australia. The shipment is part of an export agreement for 250,000 tonnes between Indonesia and Australia until the end of 2026 through a Government-to-Government (G to G) cooperation scheme. The Australian Government welcomed the arrival of fertiliser supplies from Indonesia as part of efforts to strengthen food security in Australia and the region. First Assistant Secretary of the Department of Agriculture, Fisheries and Forestry Australia Amanda Calmers said the supply of 47,250 tonnes of urea fertiliser from Indonesia provides certainty and confidence to farmers in the country while playing an important role in supporting food security in Australia and the region. “The arrival of urea from Indonesia today is a commercial agreement supported by both governments and is an example of our deep partnership and friendship,” Amanda said. She stated that the cooperation reflects the close relationship between Australia and Indonesia, which have long been neighbours and strategic partners. Economic relations between the two countries also continue to grow with the implementation of the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA). “Australia indeed has deep trust and unbroken ties with Indonesia, our neighbour and partner. They are also our friends,” Amanda said.