Badung, Bali. Indonesia has assured that its domestic fertilizer supply remains secure and said it is ready to export up to 1.5 million tons of surplus production to partner countries, as global supply chains face disruptions linked to geopolitical tensions.

The commitment was delivered on the sidelines of the Argus Fertilizer Asia Conference 2026, held from March 31 to April 2 in Bali, which brought together industry leaders across the region to discuss market dynamics, supply resilience, and long-term collaboration.

The forum convened major players, including Pupuk Indonesia, Brunei Fertilizers Industries, and Petronas, as Southeast Asian producers explored coordinated responses to supply shocks.

Indonesia currently produces around 14.5 million tons of fertilizer annually, placing it among the world’s top seven producers. With domestic needs met, the country maintains an exportable surplus of between 1.5 million and 2 million tons of urea each year.

Deputy Agriculture Minister Sudaryono said Indonesia is positioning itself as a stabilizing force in the global fertilizer market, particularly as disruptions intensify amid tensions involving Iran, Israel, and the United States.

“Indonesia is no longer merely a price taker. We want to play a balancing role. When markets are disrupted, we are ready to respond to countries seeking stable fertilizer supplies unaffected by export restrictions elsewhere,” Sudaryono said on Wednesday.

He added that disruptions in the Strait of Hormuz—a key global shipping route—have complicated supply flows, prompting several countries to approach Indonesia for urea imports.

Indonesia expects to generate about 1.5 million tons of surplus production this year, much of which has already attracted strong interest from at least five to six countries, he said, noting buyers were willing to secure supplies at prevailing market prices.

Despite the external pressures, Sudaryono stressed that domestic fertilizer availability remains unaffected. “Our national needs are secure. Farmers do not need to worry. In fact, Indonesia stands to benefit from rising export demand,” he said.

Industry leaders at the conference underscored the critical role of fertilizers in both agriculture and industrial applications. About 30% of global agricultural productivity depends on fertilizers, while urea is also used in diesel exhaust fluid (DEF) for vehicles meeting Euro 5 and Euro 6 emission standards.

Rahmat Pribadi, executive officer of Pupuk Indonesia, said regional producers have anticipated potential disruptions and have been building a collaborative platform since last year.

“We realized early on that global conditions would not remain stable. Together with Brunei Fertilizers Industries and Petronas, we have worked intensively to establish a platform for closer collaboration,” he said. “This inauguration comes at the right time, showing that Southeast Asian producers are ready to unite and support fertilizer needs globally.”

Harri Kiiski, chief executive of Brunei Fertilizers Industries, highlighted the importance of regulatory alignment and cooperation across ASEAN, noting that fertilizers are essential to feeding roughly half of the world’s population.

“In ASEAN, major players contribute significantly to regional supply. What the industry needs is a level playing field—consistent regulations, shared best practices, and a collective commitment to sustainability,” Kiiski said.

He added that future investments in decarbonization—worth billions of dollars—would require policy consistency across countries, even as current geopolitical crises temporarily shift focus away from sustainability goals.

Indonesia’s fertilizer industry comprises five main producers, including Pupuk Iskandar Muda, Pupuk Kujang, Pusri Palembang, Petrokimia Gresik, and Pupuk Kalimantan Timur.

As global uncertainty persists, Indonesia’s strategy signals a dual focus: safeguarding domestic food security while leveraging its production strength to support international markets.

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