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Indonesia sees fertilizer surplus amid global shortages

Jakarta (ANTARA) – Indonesia has secured ample fertilizer supplies and is ready to export as global output tightens due to the Middle East conflict.Finance Minister Purbaya Yudhi Sadewa stated that early subsidy payments have eased financing burdens for domestic producers.The upfront subsidy mechanism has supported producers by lowering financing costs and helping maintain stable output despite global supply chain disruptions.“We disbursed more than 20 trillion rupiah in fertilizer subsidies early in the year, reducing producers' cost of capital and eliminating the need for bank borrowing,” Purbaya said at a media briefing on Friday.Under this policy, subsidies are paid in advance to fund raw material procurement based on the gap between commercial and regulated prices.The minister said this approach enables faster operations as producers gain immediate liquidity to secure inputs and sustain production levels.“With cash on hand, producers can move quickly. Output is now high and, according to the agriculture minister, Indonesia is even ready to export as global markets face shortages,” he said.Purbaya noted that Indonesia’s production outlook contrasts with conditions in countries affected by geopolitical tensions involving Iran and the United States. Disruptions to shipping routes in the Strait of Hormuz and surging natural gas prices have driven up fertilizer costs and triggered global shortages.He added that international institutions like the World Bank have flagged fertilizer supply risks alongside broader energy concerns.Agriculture Minister Andi Amran Sulaiman previously said India, Australia, the Philippines, and Brazil have sought urea imports from Indonesia.India has requested about 500,000 tons of urea while Australia has agreed to an initial shipment of 250,000 tons.The rising overseas demand highlights the competitive advantage of Indonesian output during the current period of tightening global supply.Earlier, PT Pupuk Indonesia said it is ready to support the 250,000 ton urea export to Australia under a government to government scheme.The state owned producer remains committed to balancing these international opportunities with the primary goal of meeting all domestic agricultural needs.