Indonesia Mulls Fertilizer Exports While Keeping Local Supply
Jakarta. Indonesia is assessing plans to export fertilizer to several countries, including Australia, India, the Philippines and Brazil, as officials seek to balance a domestic surplus with farmers’ needs at home.
State-owned producer Pupuk Indonesia said the government is still finalizing calculations to ensure local supply remains secure before any shipments are approved.
“We are still calculating. The key issue is timing,” chief executive Rahmad Pribadi told reporters on Friday. “Fertilizer must be available exactly when farmers need it.”
Indonesia currently holds around 1.2 million tons of fertilizer stock, supported by a strong daily output of roughly 25,000 tons of urea and 15,000 tons of NPK. Daily domestic absorption stands at about 30,000 tons but has begun to ease from peak levels earlier this year.
The gap between production and demand has opened a potential export window, though officials remain cautious. Fertilizer use in Indonesia is highly seasonal and influenced by planting cycles and weather conditions, making precise timing critical.
“On an annual basis, supply is sufficient. But we must ensure distribution does not miss the planting season,” Rahmad said.
The export discussion comes as global fertilizer markets tighten. Disruptions to supply chains — including tensions affecting the Strait of Hormuz, a key shipping route — have driven international urea prices higher, creating an incentive for exporters.
Deputy Agriculture Minister Sudaryono said Indonesia is exploring exports of up to 1.5 million tons of urea after confirming a domestic surplus. The plan has been discussed with several countries, including India, whose peak planting season between July and September could align with Indonesia’s lower domestic demand period.
“Domestic needs remain the priority. After that, we see there is surplus that can be exported,” Sudaryono said.
Indonesia has a total urea production capacity of around 14.5 million tons annually, exceeding domestic requirements. Officials say this provides flexibility to tap export markets without jeopardizing local supply, provided distribution is carefully managed.
For now, the government is taking a wait-and-see approach, closely monitoring consumption trends before making a final decision.
“If domestic demand continues to soften, that will be the right time to export,” Rahmad said.
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