The Indonesian government has announced plans to construct seven new modern fertiliser plants over the next five years, with five of them slated for completion by 2029. The total development budget is estimated at around IDR 50 trillion (approximately USD 3 billion). These new plants are designed to be far more energy-efficient than current facilities: where older factories allocate up to 43% of operational costs to gas, the new ones are expected to reduce this to about 22-23%. The funding will come from internal efficiency programs and early reforms in subsidised fertiliser management, which have already generated savings of around IDR 10 trillion and cut production costs by approximately 26%.
The initiative underscores the government’s commitment to strengthen national food security by ensuring an affordable and steady supply of fertilisers for farmers. The new plants are expected to help gradually raise the volume of subsidised fertiliser production by about 700,000 tons by 2029. State-owned fertiliser producer PT Pupuk Indonesia (Persero) is projected to boost profits to IDR 2.5 trillion in 2026, with total revenue estimated at IDR 7.5 trillion, as part of this industrial push.
