JAKARTA: Indonesia is emerging as a global player in the fertiliser market, with countries turning to Jakarta for supplies as the Middle East crisis threatens global food security and energy distribution.
“Many countries are now asking Indonesia for help, because we have surplus fertiliser production. Australia, India, Brazil and the Philippines have all approached us,” President Prabowo Subianto has said.
Australia was one of the first countries to secure Indonesian fertiliser, with Jakarta shipping 47,250 tonnes of urea worth 600 billion rupiah (US$33.8mil) on May 14 as part of a 250,000-tonne commitment that could eventually reach 500,000 tonnes valued at seven trillion rupiah.
India has reportedly requested 500,000 tonnes of fertiliser from Indonesia.
Meanwhile, Indonesia itself imports fertiliser raw materials, such as phosphate and diammonium phosphate, from Australia.
The export push comes as Indonesia has achieved a domestic production surplus, with national urea output targeted at 7.8 million tonnes this year against domestic demand of around 6.3 million tonnes, leaving an estimated 1.5 million tonnes available for export.
Industry players, however, warned that competing globally requires more than a surplus, as volatile global prices of fertiliser and agricultural commodities can quickly pressure producers’ margins.
To secure its place in the market, Indonesia must address gaps in human capital, technology and industrial capabilities.
Wahyu Andono, general affairs head at the Indonesian Fertiliser Industry Professional Certification Institute, said global fertiliser manufacturing was increasingly shifting towards automation, smart manufacturing and Internet of Things systems, requiring workers to master digital control systems, industrial cybersecurity and process analytics.
“Indonesia already has a strong industrial foundation, but to compete globally, certification-based competencies, industrial digitalisation, workplace safety and specialised talent development must become priorities,” he said.
The industry is expected to require more specialised workers, more ammonia and urea operators, chemical process analysts, instrumentation technicians and fertiliser laboratory analysts.
Wahyu added that stronger collaboration between fertiliser producers, vocational schools and certification institutions was critical to align training programmes with the needs of modern export-orientated manufacturing. — The Jakarta Post/ANN