Indonesia Sees Fertilizer Export Opportunity Amid Hormuz Tension
Jakarta. Indonesia is seeing a surge in international demand for urea fertilizer after Iran’s closure of the Strait of Hormuz amid escalating tensions with the United States threatened global supply chains.
Deputy Agriculture Minister Sudaryono said several countries have approached Indonesia seeking large volumes of urea, showing how the geopolitical crisis could create unexpected export opportunities for Southeast Asia's largest economy.
“Because of this war, many countries are looking for urea. They want to import it from Indonesia and are asking us to export large quantities, regardless of the price,” Sudaryono said in Jakarta on Thursday.
The Strait of Hormuz is a crucial shipping route for agricultural inputs. Qatar, Saudi Arabia, Oman and Iran are among the world’s major suppliers of urea and phosphate fertilizers.
Any prolonged disruption could trigger a global shortage of nitrogen-based fertilizers widely used in agriculture.
State-owned fertilizer company Pupuk Indonesia said it has the capacity to maintain domestic supply while responding to rising international demand.
Corporate Secretary Yehezkiel Adiperwira said the Pupuk Indonesia Group currently has a total fertilizer production capacity of 14.5 million tons per year.
The company’s urea production capacity alone is sufficient to meet Indonesia’s domestic needs.
Sudaryono said the spike in demand could also temporarily extend the lifespan of several older fertilizer plants that were previously scheduled for gradual replacement due to inefficiency.
“This has become an opportunity. Plants that we initially planned to replace can temporarily continue operating because many countries are requesting urea. In the midst of this crisis, our fertilizer industry is gaining new momentum,” he said.
Pupuk Indonesia is currently the largest urea producer in the Asia-Pacific, Middle East and North Africa regions, positioning the state-owned firm to help stabilize domestic fertilizer supplies even as geopolitical tensions reshape global markets.
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