By: Jaka Wiratama P. *)
Food self-sufficiency is not merely a political narrative, but a strategic imperative for a nation as large as Indonesia. Amidst global geopolitical dynamics that frequently disrupt commodity supply chains, the government, through various tactical policies, continues to strengthen the foundations of national food sovereignty. One vital instrument determining the success of this agenda is the accurate allocation of subsidized fertilizer, supported by production efficiency. Through synergy between industrial infrastructure modernization and optimized subsidy distribution, Indonesia is now on a more solid path to achieving its status as the world’s food basket.
Concrete steps to strengthen the national fertilizer supply structure are reflected in the revitalization of production assets. PT Pupuk Indonesia (Persero), through its subsidiary, PT Pupuk Kalimantan Timur, recently inaugurated the Ammonia Factory-2 revamping project as part of a broader strategy to strengthen domestic fertilizer availability. This step is not simply a technical upgrade, but rather a profound transformation of the factory, which has been operating for four decades, to enable it to produce fertilizer raw materials much more efficiently. Through this rejuvenation, gas consumption can be reduced by more than ten percent, which directly makes production costs more competitive.
Pupuk Indonesia’s President Director, Rahmad Pribadi, emphasized that the factory’s modernization embodies the country’s ambitious vision of building industrial independence as a foundation for food self-sufficiency. The increased reliability of the factory’s operations not only ensures certainty of allocation for farmers but also aligns with sustainability commitments through significant carbon emission reductions. The extension of the factory’s technical life to fifteen years ensures that national production capacity remains sufficient to support the government’s designated subsidy volume.
Regulatory support is also a key accelerator for strengthening this allocation. Presidential Regulation No. 113 of 2025 has provided a strong legal framework for accelerating the revitalization of the national fertilizer industry through a more adaptive subsidy scheme. This policy provides room for the industry to modernize without neglecting its primary task of timely fertilizer distribution. This demonstrates the government’s presence in ensuring that subsidy allocations are not only substantial in volume but also supported by an efficient upstream industry to maintain a manageable state fiscal burden.
In line with this vision, Minister of Agriculture Andi Amran Sulaiman emphasized that revitalizing the fertilizer industry is an absolute requirement for Indonesia to transform into a global food barn. The agricultural sector cannot achieve self-sufficiency without a stable and affordable fertilizer supply. Therefore, this modernization measure is seen as the foundation for strengthening food sovereignty. The rejuvenation project in Bontang is part of a commitment to revitalize seven other fertilizer factories, targeted for completion by 2029, to ensure the annual allocation of subsidized fertilizer can be met without technical production constraints.
Beyond technological aspects, strengthening fertilizer allocation also depends heavily on the security of the global raw material supply chain. Recognizing that raw materials like phosphate are dependent on international mining resources, Pupuk Indonesia has secured a long-term partnership with Somiphos in Algeria. The agreement to import one million tons of rock phosphate per year is a preemptive measure that must be taken to ensure that the domestic allocation of subsidized NPK fertilizer is not affected by global market fluctuations.
Deputy Minister of Agriculture Sudaryono explained that this international collaboration is a direct implementation of President Prabowo Subianto’s directive to strengthen the raw material supply chain and reduce fertilizer production costs. By securing raw material sources directly from major producers, fertilizer prices for the public can be reduced. This will automatically strengthen farmers’ purchasing power for fertilizer, which will ultimately stimulate national agricultural production. This synergy demonstrates that strengthening food self-sufficiency is being implemented comprehensively, from raw material diplomacy to efficiency on the factory floor.
On the other hand, the subsidized fertilizer allocation policy for 2026 also demonstrates a clear commitment to land sustainability by increasing the proportion of organic fertilizers. The total national subsidized fertilizer allocation of 9.8 million tons this year reflects the government’s strong commitment to maintaining land productivity.
Petrokimia Gresik’s Director of Finance and General Affairs, Adityo Wibowo, stated that the distribution of subsidized organic fertilizer in 2026 will be carried out through extensive partnerships with dozens of production partners in various regions. This step ensures that the government’s allocation is optimally and timely absorbed by farmers. The widespread use of organic fertilizer is expected to restore eroded soil nutrients, thereby maintaining high land productivity in the long term, supporting sustainable self-sufficiency.
Integrating factory efficiency through digital technology, ensuring phosphate raw materials, and accurately allocating organic subsidies are key pillars that will lead Indonesia to food self-sufficiency. Gusrizal, President Director of Pupuk Kaltim, is optimistic that investment in modernizing production facilities will guarantee a more sustainable supply. When factories operate with high reliability and the latest technology, the nation’s fertilizer raw material needs can be met continuously and without interruption.
*) Food Policy and Strategic Industry Analyst