Jakarta (VNA) – Indonesia is seeing rising international demand for urea fertiliser as geopolitical tensions in the Strait of Hormuz threaten to disrupt global supply chains, creating potential export opportunities for the country’s fertiliser industry.
Deputy Agriculture Minister Sudaryono said several countries have approached Indonesia seeking large volumes of urea, showing how the geopolitical crisis could create unexpected export opportunities for Southeast Asia's largest economy.
The Strait of Hormuz is a crucial shipping route for agricultural inputs. Qatar, Saudi Arabia, Oman and Iran are among the world’s major suppliers of urea and phosphate fertilisers. Any prolonged disruption could trigger a global shortage of nitrogen-based fertilizers widely used in agriculture.
State-owned fertiliser company Pupuk Indonesia said it has the capacity to maintain domestic supply while responding to rising international demand.
Corporate Secretary Yehezkiel Adiperwira said the Pupuk Indonesia Group currently has a total fertiliser production capacity of 14.5 million tons per year.
The company’s urea production capacity alone is sufficient to meet Indonesia’s domestic needs. Sudaryono said the spike in demand could also temporarily extend the lifespan of several older fertilizer plants that were previously scheduled for gradual replacement due to inefficiency.
Pupuk Indonesia is currently the largest urea producer in the Asia-Pacific, Middle East and North Africa regions, positioning the state-owned firm to help stabilise domestic fertiliser supplies even as geopolitical tensions reshape global markets./.
