Urea Exports to Australia Strengthen Diplomacy and Regional Food Security

  • Posted by User01
  • 8 June2026
  • 17:40WIB
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Bontang, May 14, 2026 – PT Pupuk Indonesia (Persero), through PT Pupuk Kalimantan Timur (Pupuk Kaltim), has carried out its inaugural urea export shipment to Australia under a Government-to-Government (G2G) scheme. The shipment marks the beginning of cooperation between the Governments of Indonesia and Australia to strengthen food security and fertilizer supply chains across the Asia-Pacific region.

The export was officially inaugurated during a vessel dispatch ceremony at the Bontang Shared Loading (BSL) Terminal of Pupuk Kaltim in Bontang on Thursday (May 14, 2026). The ceremony was officiated by Indonesia’s Minister of Agriculture, Andi Amran Sulaiman, and attended by Australia's Deputy Ambassador to Indonesia, Gita Kamath, President Director of Pupuk Indonesia Rahmad Pribadi, President Director of Pupuk Kaltim Gusrizal, and other relevant stakeholders.

Minister of Agriculture Andi Amran Sulaiman stated that the commencement of fertilizer exports to Australia represents a historic milestone in the transformation of Indonesia’s fertilizer industry. He explained that the inaugural shipment consists of 47,250 tons of urea, serving as the initial phase of a cooperation commitment totaling 250,000 tons, which is planned to increase to 500,000 tons with an estimated total value of approximately IDR 7 trillion.

“This is a historic achievement, as Indonesia will export fertilizer to several countries, including Australia. Our initial commitment to Australia, based on discussions between the Australian Prime Minister and the President of Indonesia, is 250,000 tons. This volume will be increased to 500,000 tons, with an estimated value of around IDR 7 trillion,” he said.

The first urea shipment to Australia follows prior discussions between President Prabowo Subianto and Prime Minister Anthony Albanese. Prime Minister Albanese previously expressed his appreciation to President Prabowo for Indonesia’s approval of urea exports to Australia during a telephone conversation on April 21, 2026. The Indonesian Government has emphasized that the export policy is being implemented in a measured manner while continuing to prioritize domestic fertilizer requirements.

President Director of Pupuk Indonesia, Rahmad Pribadi, stated that the start of urea shipments to Australia carries significance beyond commercial trade.

“Today’s urea shipment to Australia is not merely a trading activity; it is also part of Indonesia’s food diplomacy efforts to strengthen food security across the Asia-Pacific region,” said Rahmad.

Rahmad emphasized that the export program continues to prioritize domestic fertilizer needs. In 2026, Pupuk Indonesia targets urea production of 7.8 million tons, while domestic demand is estimated at 6.3 million tons, resulting in a production surplus of 1.5 million tons that can be utilized without affecting national fertilizer availability.

“Pupuk Indonesia remains fully capable of meeting domestic demand while maintaining export flexibility in a measured and responsible manner,” Rahmad added.

Australia’s Deputy Ambassador to Indonesia, Gita Kamath, expressed appreciation for the commencement of urea shipments from Indonesia to Australia. According to her, the Australian Government highly values this cooperation as it reflects the strong friendship and partnership between the two countries.

“On behalf of the Australian Government and the Australian Ambassador, I would like to express our sincere appreciation. Australia greatly values its relationship with Indonesia, and this cooperation reflects the strong friendship and partnership between our two countries,” she said.

Domestic Stocks and Distribution Remain Secure

Alongside the export program to Australia, Pupuk Indonesia continues to ensure that national fertilizer stocks and distribution remain secure. As of May 13, 2026, national fertilizer inventories stood at 1.1 million tons, supported by optimal production levels across the Company’s facilities.

“Current fertilizer inventories have reached 1.1 million tons, demonstrating the resilience of national supply. This level will continue to be maintained as Pupuk Indonesia operates at optimal production capacity, with daily output reaching 25,000 tons of urea and 15,000 tons of NPK fertilizer,” said Rahmad Pribadi.

To ensure distribution remains efficient across all regions, Pupuk Indonesia utilizes its Command Center and i-Pubers system to monitor fertilizer uptake and inventory levels in real time down to the handover-point level. These digital platforms enable the Company to identify areas experiencing higher demand and rapidly reconfigure (reallocate) stock without waiting for manual reports.

This distribution optimization has also contributed to higher subsidized fertilizer distribution performance. As of May 13, 2026, subsidized fertilizer distribution had reached 3.5 million tons, approximately 36 percent higher than the same period last year.

“Through our Command Center and the i-Pubers system, we are able to monitor fertilizer stock movements in real time down to the kiosk level. This allows us to make distribution adjustments more quickly whenever demand increases in a particular region,” Rahmad concluded.

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