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View all search resultsIndonesia pushes into global fertilizer market but must up its game
Australia, India and several other countries are seeking Indonesian fertilizer supplies as geopolitical tensions disrupt global markets, but industry players say long-term competitiveness will depend on technology and workforce upgrades.
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A farmer sprays fertilizer on July 3, 2024, on tobacco plants at a field on the slopes of Mount Sindoro in Temanggung regency, Central Java. (Antara/Anis Efizudin)
I
ndonesia is emerging as a global player in the fertilizer market, with countries turning to Jakarta for supplies as the Middle East crisis threatens global food security and energy distribution.
“Many countries are now asking Indonesia for help, because we have surplus fertilizer production. Australia, India, Brazil and the Philippines have all approached us,” President Prabowo Subianto said on Wednesday.
Australia was one of the first countries to secure Indonesian fertilizer, with Indonesia shipping 47,250 tonnes of urea worth Rp 600 billion (US$33.8 million) on May 14 as part of a 250,000-tonne commitment that could eventually expand to 500,000 tonnes valued at Rp 7 trillion.
India has reportedly requested 500,000 tonnes of fertilizer from Indonesia.
Meanwhile, Indonesia itself imports fertilizer raw materials, such as phosphate and diammonium phosphate (DAP), from Australia.
The export push comes as Indonesia has achieved a domestic production surplus, with national urea output targeted at 7.8 million tonnes this year against domestic demand of around 6.3 million tonnes, leaving an estimated 1.5 million tonnes available for export.
Industry players, however, warn that competing globally requires more than a surplus, as volatile global prices of fertilizer and agricultural commodities can quickly pressure producers’ margins.
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