Indonesian Political, Business & Finance News

Vice Minister of Agriculture: Four Countries in Communication for Urea Fertiliser Imports from Indonesia

| Source: ANTARA_ID Translated from Indonesian | Trade
Vice Minister of Agriculture: Four Countries in Communication for Urea Fertiliser Imports from Indonesia
Image: ANTARA_ID

Jakarta (ANTARA) - Vice Minister of Agriculture Sudaryono stated that four countries are in communication to import urea fertiliser from Indonesia amid global distribution disruptions due to the situation in the Strait of Hormuz.

“So far, India, the Philippines, Brazil, and Australia (are interested in importing urea fertiliser from Indonesia),” said the Vice Minister after receiving a visit from the Australian Ambassador to Indonesia, Roderick Brazier, in Jakarta on Wednesday evening.

According to him, the surge in demand is occurring due to disruptions in the global supply chain triggered by geopolitical conflicts and interruptions to the main international fertiliser distribution routes.

He explained that around one-third of the world’s fertiliser distribution passes through the Strait of Hormuz, so disruptions in that area have a significant impact on global supplies.

This situation has driven a sharp rise in global fertiliser prices, with urea prices, previously ranging from 600 to 700 US dollars per tonne, now surging towards 900 US dollars.

In this context, Indonesia holds a strategic position as it is capable of producing urea independently based on domestic natural gas, which serves as the main raw material for the national fertiliser industry.

He mentioned that the national urea fertiliser production capacity reaches 14.5 million tonnes, with domestic needs below that capacity figure.

The government estimates there will be a urea surplus of around 1.5 million tonnes in 2026, which can be allocated for export after domestic needs are fully met.

“The Australian Ambassador to Indonesia just arrived, and I will also receive several other ambassadors in connection with their interest in obtaining the 1.5 million tonne surplus (of urea fertiliser) that can be allocated or requested for export to their respective countries,” explained the Vice Minister.

On the other hand, the government assures that domestic fertiliser stocks are safe and sufficient for millions of farmers, even as global demand has sharply increased in recent times.

He acknowledged that fertiliser distribution in the field sometimes experiences delays due to high uptake by farmers, leading to a chase between production and needs.

Nevertheless, according to the Vice Minister, this condition is a positive signal as it indicates increasing planting activities, in line with agricultural extension data on the national planting area.

The government continues to maintain a balance between fertiliser production, distribution, and needs to keep them stable and capable of capitalising on export opportunities without disrupting domestic interests.

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