JAKARTA - Minister of Agriculture Andi Amran Sulaiman reported to President Prabowo Subianto that the construction of the national fertilizer plant was proceeding according to plan, with five plants targeted to be completed and inaugurated before 2029 to strengthen food security.
"Insyaallah we will inaugurate five (fertilizer plant construction) before 2029," said Amran at the Raya Harvest and Food Self-sufficiency Announcement by President Prabowo, which was attended by 5,000 farmers/advisers in person and two million farmers online in Karawang, West Java, quoted by Antara, Thursday, January 8.
He said the construction of the national fertilizer plant continued as planned to strengthen food security and increase farmer productivity.
In his report, Amran said the government targeted the construction of seven new fertilizer plants as part of a long-term strategy to strengthen the national agricultural sector. The development is designed to ensure the availability of fertilizer for farmers on an ongoing basis.
"The construction of seven factories without burdening the government, Mr. President," said Amran.
Of the total seven planned fertilizer plants, five of them are confirmed to be completed and inaugurated before 2029. This acceleration is expected to support the food self-sufficiency agenda as well as strengthen the national fertilizer supply.
However, Amran has not detailed the source of funding for the construction of the fertilizer factories. The government reiterated its commitment to ensure that the project is on schedule and has a direct impact on improving farmers' welfare.
It is known that the Indonesian Government will immediately build seven new fertilizer plants in the next five years as part of efforts to strengthen the independence of the national fertilizer industry.
"The budget is approximately Rp. 50 trillion," said Amran at a press conference at the Ministry of Agriculture's Office in Jakarta, Wednesday (22/10/2025).
Amran assessed that the construction of a new factory is important because a new factory with efficient technology is able to significantly reduce production costs, especially in the use of gas raw materials.
The old plant can spend up to 43 percent of the cost on gas, while the new plant is only around 22-23 percent.
The budget for the construction of seven new fertilizer plants is the direct result of the efficiency and improvement of the management of subsidized fertilizer.
The revitalization of the fertilizer subsidy system, which was previously oriented to the downstream, is now shifted to the upstream, resulting in great efficiency for the country.
Through comprehensive reforms, Amran said the country managed to save up to Rp10 trillion in the budget, reduce the cost of fertilizer production by 26 percent, and significantly increase PT Pupuk Indonesia's profits.
In 2026, the company's profit is projected to reach IDR 2.5 trillion, with a total profit projection of IDR 7.5 trillion.
This revitalization is also said to open opportunities for increasing the volume of subsidized fertilizer by 700 thousand tons gradually until 2029.
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