TEMPO.CO, Jakarta - Agriculture Minister Andi Amran Sulaiman announced that the national fertilizer industry has grown stronger following its expansion into the Australian market, coinciding with a 20 percent drop in domestic fertilizer prices.
Amran noted that the government has recorded substantial progress in the sector, driven by President Prabowo Subianto's policy to reduce subsidized fertilizer prices by 20 percent without placing any additional burden on the State Budget (APBN).
"In an era of global geopolitical tension, Indonesia, thank God, has managed to lower fertilizer prices by 20 percent. This subsidized fertilizer is dedicated to Indonesian farmers," Amran stated on the sidelines of the inaugural urea export by state-owned fertilizer producer PT Pupuk Indonesia, through its subsidiary PT Pupuk Kalimantan Timur, to Australia at Bontang Port, East Kalimantan, as reported by Antara in Jakarta on Thursday.
He explained that this policy also includes a volume increase of 700,000 tons of subsidized fertilizer to ensure broader access for farmers.
"The fertilizer volume has increased. This brings joy to 160 million Indonesian farmers, including the 115 million who cultivate rice," Amran added.
According to the Minister, Indonesia has reached a milestone in the transformation of its national fertilizer industry through this urea export to Australia, which carries an estimated total value of Rp7 trillion.
Simultaneously, the government’s success in cutting prices while increasing supply for local farmers signifies a strengthening of the fertilizer sector from upstream to downstream.
This shipment marks a significant turning point in bilateral cooperation through a government-to-government (G2G) framework between Indonesia and Australia.
Amran further detailed that the inaugural shipment released today amounted to 47,250 tons of urea, valued at approximately Rp600 billion. This initial phase is part of a 250,000-ton cooperation commitment, which is set to expand to 500,000 tons with a total value approaching Rp7 trillion.
Following Australia, the government has begun focusing on bolstering national fertilizer exports to other strategic markets, including India, the Philippines, Brazil, and Bangladesh.
At the same event, Australian Deputy Ambassador to Indonesia Gita Kamath expressed appreciation for the ongoing collaboration between the two nations.
"Australia values its relationship with Indonesia. This collaboration reflects the deep friendship and partnership between Australia and Indonesia, not just with PT Pupuk Indonesia," said Gita Kamath, adding that the partnership provides direct benefits by strengthening food security for both nations.
She also expressed pride in receiving food security support from Indonesia. The fertilizer will assist Australian farmers in producing commodities such as wheat, which is subsequently imported by Indonesia for various food products.
"This is a concrete example of Indonesia-Australia cooperation that yields mutual benefits," Gita Kamath concluded.
Read: BMKG: Australian Monsoon Expected to Strengthen Before Weakening This Week
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