Indonesia Eyes 1.5 Million Tons of Fertilizer Exports Amid Global Tensions

Indonesia is preparing to export 1.5 million tons of fertilizer to address a global supply crunch triggered by conflict in the Middle East and subsequent disruptions in the Strait of Hormuz.

Deputy Minister of Agriculture Sudaryono announced the plan in a statement in Jakarta on April 10, 2026, noting that the government intends to stock up and leverage the disrupted global distribution networks to provide urea fertilizer to partner countries.

Impact of Middle East Conflict on Global Supply

The disruption is centered on the Strait of Hormuz, a critical waterway through which one-third of the world’s fertilizer distribution passes. Because a significant portion of the global supply originates in the Middle East, instability in the region has created a supply shortage, prompting various nations to seek alternative sources.

Sudaryono stated that Indonesia is one of the largest urea producers in the world, making it a viable partner for countries facing shortages.

International Demand and Trade Interest

Several governments have already contacted the Indonesian government regarding the purchase of urea fertilizer. Sudaryono confirmed that India has made contact, and the Indonesian government has received formal letters from the governments of the Philippines and Australia.

According to the Deputy Minister, these nations are ready to buy at any price to secure their agricultural supplies.

Domestic Production and Capacity

To meet both domestic needs and the growing international demand, the Indonesian government has canceled previous plans to close several domestic fertilizer plants.

The Pupuk Indonesia Holding Company (PIHC) is targeting the export of 1.5 million tons of fertilizer over the next year. Rahmad Pribadi, the CEO of PT Pupuk Indonesia (Persero), provided data on the nation’s production capabilities, stating that the operational urea fertilizer production capacity currently reaches 8.8 million tons, while the total installed capacity is 9.4 million tons.

Prioritizing National Food Security

Despite the opportunity for increased exports, the Indonesian government has emphasized that the needs of domestic farmers remain the primary priority.

We will not tamper with that,

Sudaryono, Deputy Minister of Agriculture and Chair of the Indonesian Farmers Association (HKTI)

The commitment to domestic supply security was also highlighted during the Argus Fertilizer Asia Conference 2026, which took place from March 31 to April 2, 2026, in Bali.