Indonesia to build 7 new fertiliser factories worth Rp50 trillion

Jakarta (ANTARA) – The Indonesian government plans to establish seven new modern fertilizer plants over the next five years to strengthen national fertilizer self-sufficiency, with five of them targeted for completion by 2029.“The development budget is around Rp50 trillion (US$3 billion),” Agriculture Minister Andi Amran Sulaiman said during a press conference at the Agriculture Ministry office here on Wednesday.He noted that the new plants will be energy-efficient, helping reduce production costs. While older factories allocate up to 43 percent of their operational expenses for gas, the new facilities are expected to spend only around 22–23 percent.According to Sulaiman, the construction budget will be sourced from efficiency programs implemented by the ministry. Adjustments to subsidized fertilizer management, which emphasize upstream aspects, have also contributed to funding the new plants.The minister added that comprehensive reforms have enabled the government to save Rp10 trillion (US$601 million) and cut fertilizer production costs by 26 percent.Fertilizer management programs by the ministry have also helped state-owned fertilizer producer PT Pupuk Indonesia increase its profit, which is projected to reach Rp2.5 trillion (US$150.3 million) in 2026, with total revenue estimated at Rp7.5 trillion (US$451 million), Sulaiman said.He further stated that the establishment of new plants will create opportunities to gradually increase subsidized fertilizer production to 700,000 tons by 2029.The minister emphasized that the policy reflects the government’s commitment to supporting farmers by ensuring adequate fertilizer supply and affordability to maintain national food security.During a limited Cabinet meeting at his Jakarta residence on October 16, President Prabowo Subianto instructed Minister Sulaiman to maximize the potential of state-owned fertilizer plants, Minister of State Secretariat Prasetyo Hadi said.“The President instructed Minister Sulaiman to explore various schemes and innovations to guarantee fertilizer availability and, if possible, revitalize existing fertilizer factories,” Hadi stated.He underscored that President Prabowo views sufficient access to affordable and quality fertilizers as essential to strengthening national food resilience.