The deal is being coordinated under a government to government scheme to address global supply disruptions in the agricultural sector.
“We are adequately capable of meeting Indonesia’s domestic needs while seizing export opportunities,” Pupuk Indonesia President Director Rahmad Pribadi remarked on Thursday.
He underlined that the company has the capacity to produce up to 9.4 million tonnes of urea annually to support national and regional stability.
This year’s output is estimated at 7.8 million tonnes against 6.3 million tonnes of domestic demand, indicating a significant surplus for farmers.
Pribadi stated that the company has capitalized on favorable pricing trends in natural gas feedstock to ramp up production for both markets.
“With strong production capacity, we are able to ensure sufficient supply for national needs while also playing a role in maintaining regional stability,” the director said.
Though voicing support for the Australian export plan, he assured the public that domestic demand will remain the top priority for the agency.
“Aligning with the government’s directive, our top priority is still to meet domestic needs,” Pribadi affirmed in an official statement.
He noted that the company adopts a selective and measurable approach to exports while factoring in the national supply balance.
As of Wednesday, Indonesia’s fertilizer stockpiles stood at 1.19 million tonnes with a daily production pace of 25,000 tonnes of urea.
The government also maintains a consistent output of 15,000 tonnes of NPK fertilizer to ensure comprehensive support for the agricultural industry.
Earlier, President Prabowo Subianto and Australian Prime Minister Anthony Albanese discussed the export plans in a phone call on Tuesday, April 21.
“In the call, PM Albanese expressed his appreciation for the president’s approval of the initial export of 250,000 tonnes of urea fertilizer to Australia,” Cabinet Secretary Teddy Indra Wijaya explained in an Instagram post.
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Translator: Uyu Liman, Tegar Nurfitra
Editor: Arie Novarina
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