Pupuk Indonesia President Director Rahmad Pribadi noted that trade discussions are ongoing as Indonesia supplies fertilizer to Australia under a government-to-government (G-to-G) cooperation agreement.
“We have begun trade with Australia and are now in talks with other countries, including Bangladesh, India, and several others in Asia,” he remarked after a ceremony welcoming the arrival of 47,250 tonnes of Indonesian fertilizer at the Port of Brisbane, Australia, on Monday.
Pribadi explained that the negotiations follow the government’s decision to allocate excess domestic fertilizer output to exports, signaling a strong trend in production.
“It is true that our production capacity now exceeds the needs of farmers,” he said, noting that the fertilizer industry is being designed to accommodate exports.
Even so, he assured the public that President Prabowo Subianto had issued a directive to first ensure adequate supplies for domestic farmers.
With domestic demand fulfilled, he continued, Indonesia sees a responsibility to leverage its surplus production to help strengthen regional supply chains.
“Mr. President’s second directive is not to leave partner countries reeling from fertilizer shortages once Indonesia has filled its warehouses with sufficient stocks,” Pribadi stated.
He then highlighted potential export plans tailored to the planting season of each destination country.
“We are now supplying fertilizer to Australia because it is currently in a planting season. Going forward, we could shift to South Asian countries once their planting seasons have arrived,” he said.
On the trade with Australia, he noted that both governments had agreed on a deal for 250,000 tonnes of fertilizer.
“Australia has been the primary market for Indonesia’s urea from time to time. This shipment, however, is special because it is arranged under a G-to-G agreement and a long-term contract providing certainty amid market volatility,” he remarked.
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Translator: Indra Arief, Tegar Nurfitra
Editor: Azis Kurmala
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