According to state fertilizer company PT Pupuk Indonesia, Indonesia is negotiating with various nations keen on importing its urea fertilizer to ensure stock availability due to global supply chain interruptions.
President Director of Pupuk Indonesia, Rahmad Pribadi, stated that trade negotiations are in progress as Indonesia provides fertilizer to Australia through a government-to-government (G-to-G) cooperation accord.
“We have initiated trade with Australia and are currently negotiating with additional countries, such as Bangladesh, India, and many others in Asia,” he stated following a ceremony that welcomed the arrival of 47,250 tonnes of Indonesian fertilizer at the Port of Brisbane, Australia.
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Pribadi noted that the discussions stem from the government's choice to direct surplus domestic fertilizer production toward exports, indicating a robust production trend.
“It is true that our production capacity now exceeds the needs of farmers,” he says, noting that the fertilizer industry is being designed to accommodate exports.
Regardless, he reassured the public that President Prabowo Subianto had ordered that sufficient supplies be guaranteed for local farmers.
Having met domestic demand, he mentioned, Indonesia feels obliged to utilize its surplus production to enhance regional supply chains.
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“President’s second directive is not to leave partner countries reeling from fertilizer shortages once Indonesia has filled its warehouses with sufficient stocks,” Pribadi states.
He subsequently emphasized possible export strategies customized for the growing season of every destination nation.
“We are now supplying fertilizer to Australia because it is currently in the planting season. Going forward, we could shift to South Asian countries once their planting seasons have arrived,” he says.
Regarding trade with Australia, he mentioned that both governments reached an agreement for 250,000 tonnes of fertilizer.
“Australia has been the primary market for Indonesia’s urea from time to time. This shipment, however, is special because it is arranged under a G-to-G agreement and a long-term contract providing certainty amid market volatility,” he remarked.
Earlier, Hashim Djojohadikusumo, the Presidential Special Envoy for Energy and Environment, stated that state-owned fertiliser producer PT Pupuk Indonesia has successfully ensured supply stability despite global disruptions.
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Rahmad Pribadi, President Director of PT Pupuk Indonesia, stated that Indonesia has assumed a strategic position as a stabilizer of regional fertilizer supplies amidst global disruptions in energy and fertilizer flows caused by conflicts in the Middle East. He stated that this is closely related to the government's duty in executing suitable strategies to assist the fertilizer sector.
He continued that this approach is evident in government policy through Presidential Regulation No. 6 of 2025 regarding the Management of Subsidized Fertilizer, which was subsequently revised to Presidential Regulation No. 113 of 2025.