Indonesia delivers first 47,250t urea cargo to Australia under landmark government deal

Indonesia’s state fertilizer producer Pupuk Indonesia has delivered its first cargo of urea to Australia under a government-to-government supply agreement, with 47,250 tonnes arriving at the Port of Brisbane aboard the bulk carrier Medi Luna on June 22.

The shipment is the opening installment of a 250,000-tonne deal brokered between the governments of President Prabowo Subianto and Prime Minister Anthony Albanese, under which Indonesia will deliver urea in stages through December 2026. Incitec Pivot Fertilisers is the Australian receiving partner.

The deal was struck in April as the Strait of Hormuz closure — through which roughly 60% of Australia’s urea supply normally transits — disrupted global fertilizer flows. Indonesian production draws on domestic natural gas and routes through regional shipping lanes that are not exposed to the U.S.-Iran conflict, making it a lower-risk supply corridor.

Pupuk Indonesia President Director Rahmad Pribadi said Australia had historically been a major spot buyer, but that this arrangement is different in kind. The cargo will supply cotton, wheat, fruit and vegetable farmers in Queensland and New South Wales.

The Indonesian government is considering scaling the deal to 500,000 tonnes, which would bring the total value to approximately $398 million. Pupuk Indonesia is also in separate talks with Bangladesh and India about supplying urea once Australia’s current planting window closes.

Source: ANTARA News