The Indonesian government has announced plans to build seven new fertilizer plants over the next five years to enhance national self-sufficiency in fertilizer production. With an estimated investment of IDR 50 trillion (approximately USD 3 billion), the initiative aims to increase domestic output and reduce operational costs through the adoption of more efficient technologies. According to Agriculture Minister of Indonesia, Andi Amran Sulaiman, five of the plants are expected to be completed by 2029. The newer facilities are projected to cut gas consumption costs nearly in half compared to older plants, significantly improving production efficiency. This large-scale investment is funded through reforms in the subsidized fertilizer system, shifting subsidies upstream and generating savings of up to IDR 10 trillion. These reforms have already reduced production costs by 26% and are expected to boost PT Pupuk Indonesia’s profits to IDR 2.5 trillion in 2026, with total earnings projected to reach IDR 7.5 trillion. The initiative also allows for a gradual increase in subsidized fertilizer volume, targeting 700,000 tons by 2029. Minister Amran emphasized that the policy is part of a broader strategy to ensure fertilizer availability and affordability, reinforcing the government’s commitment to national food sovereignty.Source: https://rri.co.id/en/national/1918197/indonesia-to-build-seven-new-fertilizer-plants-for-industry-independence (ICE GIACARTA)

Fonte notizia: rri.co.id, 22 October 2025