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View all search resultsAustralia, India eye Indonesian urea as global supply tightens
The government projects excess domestic supply of around 1.5 million tonnes in 2026, which could be allocated for exports.
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Dry nutrients: A farmer applies dry fertilizer on March 1, 2024, to a paddy field in Sawit, Boyolali, Central Java. (Antara/Aloysius Jarot Nugroho)
D
eputy Agriculture Minister Sudaryono said governments of four countries had approached Jakarta for possible urea imports, as the disruption of shipping through the Strait of Hormuz has sent shock waves through global fertilizer markets and pushed prices sharply higher.
“Those that have reached out so far are India, the Philippines, Brazil and Australia,” Sudaryono said on Wednesday after meeting Australian Ambassador to Indonesia Roderick Brazier in Jakarta, as quoted by news agency Antara.
Roughly one-third of global fertilizer exports pass through the strait, which at it’s narrowest point measures only 34 kilometers between Iran to the north and Oman to the south.
In response to the United States-Israeli war on Iran, Tehran has banned most ships from passing through it, resulting in a supply shock that has driven global urea prices up from around US$600–700 per tonne to nearly $900 per tonne in recent weeks.
Against this backdrop, Indonesia’s domestically anchored production, reliant on natural gas as a key feedstock, positions the country as a relatively stable supplier.
Sudaryono noted that the national urea production capacity stood at 14.5 million tonnes annually, exceeding domestic demand.
The government projects excess supply of around 1.5 million tonnes in 2026, which could be allocated for exports.
