Successful Fertiliser Export to Australia, Indonesia Also Targets These Countries
Jakarta, CNBC Indonesia - In addition to Australia, the government is currently targeting the expansion of the fertiliser market to several other countries such as India, the Philippines, Brazil, and Bangladesh. Interest from these countries has emerged in line with the increased competitiveness and production efficiency of domestic fertiliser factories, which are capable of producing high-quality products.
“Moreover, the Indian ambassador has directly contacted me requesting 500,000 tonnes, and several other countries are also interested in requesting supplies, namely the Philippines, Brazil, Bangladesh, and there are a few more countries; we received reports of countries interested in urea fertiliser from Indonesia,” said Minister of Agriculture Andi Amran Sulaiman on Thursday (14/5/2026).
The increase in export capacity is driven by policies to revitalise the national fertiliser industry through seven strategic projects with a total investment value of Rp 72.84 trillion. Replacing old factories with more efficient new technology is reported to reduce production costs by up to 26% while significantly cutting fossil fuel consumption.
“At a time when global geopolitics are heating up, Indonesia, Alhamdulillah, has seen fertiliser prices drop by 20 percent. Subsidised fertiliser for Indonesian farmers. Then the volume of fertiliser increases. This is the joy for Indonesia’s 160 million farmers,” stated Amran.
Through reforms to the subsidy mechanism and deregulation of 145 regulations, the government projects savings in the fertiliser subsidy budget of up to Rp 112 trillion by 2035. Amran emphasised that this production surplus will not disrupt domestic stocks, as the government’s top priority remains ensuring fertiliser availability for domestic farmers to achieve food self-sufficiency targets.
“Fertiliser is not just about production and distribution. Fertiliser is a strategic instrument towards national food sovereignty,” he stressed.
Rp 7 Trillion Export
PT Pupuk Indonesia (Persero), through its subsidiary PT Pupuk Kalimantan Timur, has officially begun exporting urea fertiliser to Australia with a total value of Rp 7 trillion. This achievement marks a new historic milestone in strengthening Indonesia’s position in the global energy and agroindustry market, while also proving the capability of the national fertiliser production surplus.
The Minister of Agriculture directly inspected the release of this inaugural export at Bontang Port, East Kalimantan. He explained that this shipment is carried out through a government-to-government cooperation scheme to strengthen the economic sovereignty of both countries amid global geopolitical uncertainties.
“Our plan is to export 250,000 tonnes to Australia and then increase it to 500,000 tonnes,” he said in an official statement on Thursday (14/5/2026).
In the initial stage, the volume of urea shipped reaches 47,250 tonnes with a value of around Rp 600 billion. The success in penetrating the Australian market is seen as the result of massive improvements in the governance of the national fertiliser industry, from upstream to downstream sectors.
“We once again, on behalf of the government, express our thanks to Pupuk Indonesia for their hard work and achievements,” said Amran.