Pupuk Indonesia Has Potential to Export 2 Million Tonnes to Maintain Global Supply

Jakarta (ANTARA) - The President Director of PT Pupuk Indonesia (Persero), Rahmad Pribadi, stated that the company has the potential to export 1.5-2 million tonnes to help maintain global supply stability amid distribution disruptions caused by conflicts in the Middle East. Nevertheless, he assured that fulfilling domestic fertiliser needs remains the company’s priority to support national food security. “After domestic needs are met, there is potential for exports of around 1.5 to 2 million tonnes that can be utilised to support global market stability,” Rahmad Pribadi said in an official statement received in Jakarta on Wednesday. He explained that this supply resilience is supported by the company’s production capacity of 14.8 million tonnes per year, including 9.4 million tonnes of urea. Additionally, the shift in subsidy schemes from cost plus to a market-based mechanism, or mark-to-market (MtM), along with support for upfront partial subsidy payments, enables the company to maintain the sustainability of raw material supplies while accelerating the industrial revitalisation programme. “In the next five years, Pupuk Indonesia targets the construction and revitalisation of seven factories as part of strengthening capacity and production efficiency,” Rahmad said. In the last two years, Pupuk Indonesia has successfully distributed subsidised fertiliser on time starting from 1 January each year. This achievement is accompanied by a 20 per cent reduction in the Highest Retail Price (HET) for subsidised fertiliser in 2025. This has also driven a 31 per cent increase in the absorption of subsidised fertiliser in the first quarter of 2026 compared to the same period in the previous year. The Chairman of Pupuk Indonesia, Sudaryono, stated that the transformation and revitalisation carried out by the company have strengthened the foundation of the national fertiliser industry. He assessed that this performance strengthening not only increases national production capacity but also opens opportunities for Indonesia to play a role in maintaining the balance of global fertiliser supplies. “Domestic fertiliser portions will certainly be fulfilled first. However, with global supplies disrupted, many countries now need urea from Indonesia. We are one of the world’s largest urea producers, and this is both an opportunity and a responsibility to maintain supply balance,” Sudaryono said. Previously, Minister of Agriculture Andi Amran Sulaiman stated that three countries have requested urea fertiliser supplies from Indonesia amid the closure of the Strait of Hormuz. However, he did not disclose the countries as negotiations are still ongoing. “Yes, we’ll see, this is still under negotiation, so our prices can be a bit better,” Andi Amran Sulaiman said during a visit to the Bulog Panaikang Warehouse in Makassar on Sunday (5/4).