Indonesia to Develop 7 New Fertilizer Plants Without State Budget

Major Agricultural Investment

Indonesia's Agriculture Minister, Andi Amran Sulaiman, revealed plans to construct 7 new fertilizer plants through state-owned enterprise PT Pupuk Indonesia (Persero) without using the state budget. The ambitious project aims to significantly boost the country's agricultural productivity and food security.

Project Timeline and Expectations

The minister announced that five of the seven planned fertilizer plants are targeted to be operational by 2029. This timeline was shared during a ceremony for agricultural achievements and a harvest festival in Karawang. The investment is expected to have a substantial impact on Indonesia's agricultural sector, potentially increasing production capacity and reducing reliance on imported fertilizers.

Economic Impact and Government Allocation

The Agriculture Ministry has been allocated a budget of Rp 40 trillion for 2026. According to Minister Amran, this budget is projected to generate a return of Rp 400 trillion in economic value. The minister highlighted that the ministry's budget has previously demonstrated significant returns, with a 33% increase in exports and a reduction of Rp 321 trillion in imports.

Strategic Importance

The development of these fertilizer plants is a strategic move to enhance Indonesia's agricultural self-sufficiency. By increasing domestic fertilizer production, the country aims to support its agricultural output and potentially become a net exporter in the sector. This initiative aligns with the government's broader goals of achieving food security and reducing dependence on foreign agricultural products.