Indonesia's urea export to Australia boosts Indo-Pacific food security

Jakarta (ANTARA) - Indonesia has delivered 47,250 metric tons of urea to Australia, marking a milestone in bilateral fertilizer cooperation as both countries seek more resilient food-security and agricultural supply chains amid global market uncertainty.

The milestone was marked by the arrival of the Motor Vessel Medi Luna at Brisbane Port, Queensland, carrying 47,250 metric tons of Indonesian-produced urea.

The shipment represents a key step in implementing Indonesia-Australia fertilizer cooperation under a government-to-government framework designed to strengthen Indo-Pacific food security.

The deal also reinforces PT Pupuk Indonesia’s role in regional fertilizer supply chains and supports Jakarta’s broader strategy of using commodity exports to advance economic diplomacy.

Indonesian Ambassador to Australia and Vanuatu Siswo Pramono said the shipment demonstrates Indonesia’s growing contribution to regional food security.

He said disruptions linked to geopolitical tensions in the Middle East have highlighted the need for dependable fertilizer suppliers across the region.

"This cooperation reflects the close food-security partnership between Indonesia and Australia," Siswo said, noting Australia's annual fertilizer demand reaches about 3.7 million metric tons.

PT Pupuk Indonesia President Director Rahmad Pribadi said the successful delivery reflects the company’s efforts to strengthen the competitiveness of Indonesia’s fertilizer industry.

He said Indonesia’s ability to sustain production and supply during global uncertainty has enhanced its standing as a reliable source of fertilizer.

"Indonesia is demonstrating that it can provide certainty of supply when global markets face uncertainty," Rahmad said.

With annual production capacity of 14.8 million metric tons, Pupuk Indonesia can meet domestic demand while supplying export markets.

The company targets urea production of 7.8 million metric tons in 2026, exceeding estimated domestic demand of 6.3 million metric tons and leaving room for exports.

Rahmad said government policy prioritizes domestic fertilizer availability before allocating surplus output to international markets.

Indonesia's export capability is supported by ample domestic inventories. As of June 22, subsidized fertilizer stocks totaled 1.23 million metric tons.

Subsidized fertilizer distribution reached 4.61 million metric tons, up 30 percent from a year earlier, reflecting stronger delivery to farmers nationwide.

Amanda Chalmers of Australia's Department of Agriculture, Fisheries and Forestry welcomed the shipment, describing it as evidence of the countries' strategic partnership.

She said Indonesian fertilizer supplies help provide certainty for farmers while supporting food security across Australia and the wider region.

The export follows an agreement between President Prabowo Subianto and Prime Minister Anthony Albanese. The inaugural shipment departed PT Pupuk Kalimantan Timur’s terminal in Bontang, East Kalimantan, in mid-May.

Indonesia plans to continue exports in stages, targeting total urea shipments of 250,000 metric tons to Australia by the end of 2026.

The Brisbane arrival ceremony was attended by Australian government officials, fertilizer industry executives and representatives from Ridley Corporation and Incitec Pivot Fertilisers.

Indonesia's delegation included Ambassador Siswo Pramono, senior Agriculture Ministry adviser Hasil Sembiring, Consul General Leonard Sondakh, Pupuk Indonesia President Director Rahmad Pribadi and other officials.

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Reporter: Martha Herlinawati Simanjuntak

Editor: Rahmad Nasution

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