Middle East turmoil heats up, Indonesia fertilizer to ensure national fertilizer stock is safe

JAKARTA - PT Pupuk Indonesia (Persero) ensures that the national fertilizer supply remains safe amid the geopolitical dynamics in the Middle East region.

The company emphasized that the availability of fertilizer for farmers was maintained thanks to strong production capacity and diversified raw material management strategies.

Corporate Secretary of Pupuk Indonesia Yehezkiel Adiperwira said his party was committed to carrying out the government's mandate to maintain the availability and affordability of fertilizers in the country.

"Pupuk Indonesia is committed to carrying out the government's mandate to ensure the availability and affordability of fertilizers for farmers. In the midst of the geopolitical dynamics that are happening, we ensure that the national fertilizer supply remains safe so that farmers can continue to plant without having to worry about the availability of fertilizers," said Yehezkiel in an official statement, Tuesday, March 17.

Currently, the production capacity of Pupuk Indonesia Group reaches 14.8 million tons per year for various types of fertilizers. Especially for urea fertilizer, the national production capacity is considered capable of meeting all domestic needs.

Ezekiel explained that national urea production is relatively self-sufficient because its main raw material in the form of natural gas is supplied from within the country at prices set by the government.

With this condition, the escalation of the conflict in the Strait of Hormuz as one of the global urea distribution routes does not have a direct impact on the supply of fertilizer in Indonesia.

"Pupuk Indonesia is the largest urea producer in the Asia Pacific, Middle East, and North Africa regions. With this strong production capacity, we have the ability to maintain optimal fertilizer supplies for Indonesian farmers," he said.

In addition to relying on production capacity, Pupuk Indonesia also strengthens supply chain resilience through diversification of raw material sources. For phosphate (P) components, the company obtains supplies from North African countries such as Morocco, Tunisia, and Algeria. Meanwhile, the need for potassium (K) is supplied from Canada and Laos which are outside the conflict area.

The raw materials for sulfur (S) which partly come from the Middle East region are still anticipated through alternative supplies from other countries such as Canada and Kazakhstan. In addition, part of the sulfuric acid needs can also be met from domestic sources.

With this diversification step, the risk of disruption in the supply of raw materials can be minimized so that the fertilizer production process continues to run optimally.

Pupuk Indonesia also strengthens the management of strategic raw material stocks, including phosphate, potassium, sulfur, and sulfuric acid, which are currently at an adequate level to support production sustainability. This step is also an anticipation of potential increases in logistics costs due to fluctuations in world oil prices.

In terms of operations, the company also increased energy efficiency and optimized the use of raw materials through an industrial revitalization program that refers to Presidential Regulation Number 113 of 2025.

The program includes the construction of new factories as well as the rejuvenation of seven factories in the next five years.

With the support of production capacity, diversification of raw materials, strengthening of stocks, and revitalization programs, Pupuk Indonesia is optimistic that it will be able to maintain the stability of the national fertilizer supply in the midst of global uncertainty.

"Our main focus remains to ensure that the domestic fertilizer needs are met optimally," concluded Ezekiel.