Jakarta, April 8, 2026 – PT Pupuk Indonesia (Persero) has officially marked its 14th anniversary, a momentum for the company to reaffirm its commitment to strengthening national food security amid increasingly complex global geopolitical dynamics. Carrying the theme “Transform, Sustain, Empower,” this year’s anniversary reflects the company’s strategic efforts to safeguard domestic supply while reinforcing Indonesia’s role in supporting the balance of global fertilizer supply.

This momentum becomes even more relevant as global fertilizer supply chains face increasing pressure, including due to geopolitical tensions in the Middle East that affect global distribution routes. In this situation, Indonesia is positioned strategically as one of the world’s urea producers capable of maintaining supply stability.

President Director of Pupuk Indonesia, Rahmad Pribadi, emphasized that the company’s primary priority remains fulfilling domestic needs, which form the foundation of national food security.

“Amid global dynamics, our priority remains ensuring that domestic fertilizer needs are well met. However, with the capacity we have, Indonesia also has room to contribute to maintaining global supply balance. After domestic needs are fulfilled, there is export potential of around 1.5 to 2 million tons, which can be utilized to support global market stability,” said Rahmad.

He added that this strategic position did not emerge overnight but is the result of continuous transformation efforts to strengthen the foundation of the national fertilizer industry.

This supply resilience is supported by Pupuk Indonesia’s production capacity of 14.8 million tons per year, including 9.4 million tons of urea. With a strong production base supported by domestic resources, Indonesia has greater resilience in facing global supply chain pressures.

In line with the 14th anniversary theme, the company’s transformation includes comprehensive improvements, ranging from subsidy policy reforms and distribution governance to strengthening financing structures. The government has issued Presidential Regulation No. 6 of 2025, later refined through Presidential Regulation No. 113 of 2025, which promotes a more effective distribution system and a more adaptive financing scheme.

Through the transition from a cost-plus subsidy scheme to a market-based mechanism or marked-to-market (MtM), along with partial upfront subsidy payments, Pupuk Indonesia has gained stronger financial flexibility. This enables the company to maintain the sustainability of raw material supply while accelerating its industrial revitalization program.

“Revitalization is key to ensuring that the national fertilizer industry remains reliable and competitive. With support from new policies, we now have stronger financing flexibility, enabling faster plant construction and refurbishment. Over the next five years, Pupuk Indonesia targets the construction and revitalization of seven plants as part of strengthening capacity and production efficiency,” Rahmad stated.

This transformation has also delivered tangible impacts on the agricultural sector. The distribution of subsidized fertilizers has been successfully carried out on time starting January 1 for two consecutive years, accompanied by a 20% reduction in the Highest Retail Price (HET) of subsidized fertilizers in 2025. This has contributed to a 31% increase in subsidized fertilizer absorption in the first quarter of 2026 compared to the same period the previous year.

President Commissioner of Pupuk Indonesia, Sudaryono, stated that the company’s transformation and revitalization efforts have strengthened the foundation of the national fertilizer industry while positioning Indonesia strategically amid global supply chain disruptions. This strengthening not only increases national production capacity but also opens opportunities for Indonesia to play a role in maintaining global fertilizer supply balance.

“Domestic fertilizer needs will always be prioritized. However, with global supply disruptions, many countries now require urea from Indonesia. We are one of the largest urea producers in the world, and this presents both an opportunity and a responsibility to help maintain supply balance,” Sudaryono said.

At its 14th anniversary, Pupuk Indonesia reaffirmed that its transformation efforts are not only aimed at strengthening corporate performance but also at ensuring its strategic role in maintaining national food security. Going forward, the company will continue to promote fertilizers that are more accessible and affordable, supported by an industry that is efficient, resilient, and sustainable.

With the spirit of Transform, Sustain, Empower, Pupuk Indonesia is committed to continuing as a key pillar in supporting Indonesia’s food security while contributing to global supply stability amid evolving dynamics.