“Due to the war, almost every country wants urea. Many are asking Indonesia to export large volumes, with demand coming regardless of price,” he stated in Jakarta on Thursday.
According to him, the difficult situation surrounding the Iran-US War has made Indonesia become more competitive.
Initially, Pupuk Indonesia’s aging fertilizer factories were gradually being replaced with new ones, as they were considered inefficient and expensive.
However, due to the ongoing war in the Middle East, many countries deem it necessary to import urea fertilizer regardless of the price and cost, thus allowing these aging fertilizer factories to resume production, Sudaryono explained.
“This presents an opportunity for our aging fertilizer factories to resume operation due to increasing demand. God willing, our fertilizer industry will be revitalized,” he remarked.
The state-owned fertilizer company, PT Pupuk Indonesia, is the largest urea producer in the Asia Pacific, Middle East, and North Africa region. With this strong production capacity, the facility has the ability to maintain an optimal fertilizer supply for Indonesian farmers.
Pupuk Indonesia ensures that the national fertilizer supply remains secure amidst the geopolitical turmoil in the Middle East.
Pupuk Indonesia Corporate Secretary Yehezkiel Adiperwira confirmed the company’s adequate production capacity and raw material reserves to ensure a sustainable fertilizer supply for farmers.
He added that the Pupuk Indonesia Group’s current production capacity reaches 14.5 million tons per year for various types of fertilizer.
Specifically for urea fertilizer, the production capacity is even capable of meeting all domestic demand.
He then noted that national urea production is essentially self-reliant since its key raw material, natural gas, is available locally and its supply and pricing are controlled by the government.
Therefore, despite the escalation of the conflict in the Strait of Hormuz, this situation will not directly impact the national urea fertilizer supply, Adiperwira emphasized.
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Translator: Suharsana Aji, Resinta Sulistiyandari
Editor: Azis Kurmala
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