KBRN, Jakarta: The Indonesian government is set to construct seven new fertilizer plants over the next five years as part of a major initiative to strengthen the national fertilizer industry's self-sufficiency.

This significant investment aims to boost domestic production and drastically reduce operational costs through technological efficiency. Indonesian Minister of Agriculture Andi Amran Sulaiman stated that five of the plants are expected to be completed by 2029.

“The estimated budget is around IDR 50 trillion (approximately USD 3 billion),” Minister Amran said during a press conference at the Ministry of Agriculture office in Jakarta on Wednesday, October 22, 2025, as quoted by antaranews.com.

He emphasized the importance of upgrading to more efficient technology, noting that newer facilities can significantly reduce production costs, particularly in gas consumption. While older plants spend up to 43 percent of their costs on gas, newer ones are projected to use only about 22 to 23 percent.

Minister Amran explained that the funding for the new plants stems directly from reforms in the management of subsidized fertilizer. The government has shifted its subsidy approach from downstream to upstream, resulting in substantial savings.

Through this comprehensive reform, the state has reportedly saved up to IDR 10 trillion, cut fertilizer production costs by 26 percent, and boosted the profitability of PT Pupuk Indonesia. The company’s profit is projected to reach IDR 2.5 trillion in 2026, with total earnings expected to climb to IDR 7.5 trillion.

The revitalization effort also opens the door for a gradual increase in subsidized fertilizer volume, with a target of up to 700,000 tons by 2029.

Minister Amran underscored that the policy reflects the government’s commitment to supporting farmers. “This bold move ensures that fertilizer remains available, affordable, and well-targeted, part of our broader mission to achieve national food sovereignty,” he said. ***