Indonesia Strengthens Global Fertilizer Supply Amid Strait of Hormuz Issues

RRI.CO.ID, Jakarta – Disruptions to global fertilizer supply routes through the Strait of Hormuz have created a strategic opportunity for Indonesia to strengthen its position as a key player in the international market.

“We have a plan to maintain stock this year and export a total of 1.5 million tons of fertilizer,” Deputy Minister of Agriculture, Sudaryono, said in Jakarta on Friday, April 10, 2026, as quoted by Antara.

He explained that the current global situation has made it difficult for many countries to secure fertilizer supplies, particularly urea, since about one-third of global distribution depends on the disrupted Strait of Hormuz route.

This has driven demand for fertilizer produced in Indonesia, one of the world’s largest urea producers. Several countries have already moved quickly to secure supplies.

“The Indian government has contacted us. I have also received letters from the governments of the Philippines and Australia. They are ready to buy at any price,” Sudaryono said.

High interest from these countries underscores Indonesia’s strong bargaining power amid surging global urea prices, which have doubled from around USD 400 to USD 800 per ton.

Sudaryono added that the surge in demand has also shifted domestic policy. Plans to close several fertilizer factories have been canceled to maintain production capacity for the growing export market. “We previously planned to shut down factories, but now we’re not doing that because demand is very high,” he said.

At the same time, the government stressed that domestic farmers’ needs will remain the top priority, ahead of exports.

State-owned fertilizer producer PT Pupuk Indonesia (Persero) President Director Rahmad Pribadi said exports will be carried out flexibly, adjusting to national stock levels. With an operational urea production capacity of 8.8 million tons, Indonesia is confident it can meet domestic demand while helping other countries facing shortages.

Currently, Indonesia’s fertilizer export destinations include Asia and Australia, which are increasingly dependent on alternative supplies outside the Middle East.

This momentum positions Indonesia not only as an exporter but also as a stabilizing force in global fertilizer supply amid geopolitical uncertainty. ***