RRI.CO.ID, Bontang - Indonesia launched its first urea fertilizer export to Australia on Wednesday, May 14, 2026, marking a milestone in the country’s efforts to strengthen its fertilizer industry and global trade presence. Agriculture Minister Andi Amran Sulaiman officiated the shipment at Bontang Port in East Kalimantan.

State-owned fertilizer company PT Pupuk Indonesia, through PT Pupuk Kalimantan Timur, carried out the initial shipment of 47,250 tons of urea fertilizer valued at approximately IDR 600 billion.

The government has set a target of exporting 250,000 tons to Australia, with plans to increase the volume to 500,000 tons, bringing the total export value to IDR 7 trillion.

“Our plan is to first export 250,000 tons to Australia, and then increase that amount to 500,000 tons,” Minister Amran said. He emphasized that the successful exports demonstrate the growing competitiveness of Indonesia’s fertilizer industry, noting that India, the Philippines, Brazil, and Bangladesh have also expressed interest.

At the same time, the government announced a 20 percent reduction in the price of subsidized fertilizer, while increasing the subsidized volume by 700,000 tons without additional state funding. “At a time of global geopolitical tensions, Indonesian fertilizer prices have dropped 20 percent. Fertilizer volume has also increased,” Minister Amran said.

President Prabowo Subianto’s administration has raised the allocation of subsidized fertilizer from 4.55 million tons to 9.55 million tons to support national food self-sufficiency.

To accelerate distribution, the government deregulated 145 regulations across ministries and institutions, streamlining the system so that fertilizer is now distributed directly to farmer groups and cooperatives.

The government is also reforming the subsidy mechanism by eliminating inefficient cost components. These reforms are projected to save IDR 14 trillion annually, with total savings expected to reach IDR 112 trillion by 2035.

In addition, seven strategic projects worth IDR 72.84 trillion are being implemented to revitalize the national fertilizer industry. Modernization includes replacing old, energy-intensive factories and reducing production costs by 26 percent compared to older facilities.

Australian Deputy Ambassador to Indonesia, Gita Kamath, welcomed the cooperation, saying it would strengthen food security in both countries. “This collaboration reflects the strong friendship between Indonesia and Australia. This fertilizer also supports Australian food production,” she said.

Minister Amran stressed that all improvements in the fertilizer sector aim to reinforce national food sovereignty and improve farmers’ welfare. “Fertilizer is not just about production and distribution. It is a strategic instrument toward achieving national food sovereignty,” he said. (Misni Parjiati)