Indonesia's Minister of Energy and Mineral Resources advisor, Satya Hanga Yuda Widya Putra, confirmed that the government will prioritize the fertilizer industry in the allocation of natural gas. This assurance came during a field visit to the PT Pupuk Kujang fertilizer plant in the Cikampek area of West Java, where he explained that this decision aligns with government policies aimed at achieving self-sufficiency in food and energy.
Hanga pointed out that natural gas is a crucial raw material in fertilizer production, with no suitable alternatives available. He emphasized that the government aims to provide competitive natural gas prices for the fertilizer sector, which will help maintain subsidized fertilizer prices for farmers.
Details of the Announcement
During his visit, Hanga explained that the government is working to ensure stable natural gas prices, not only during production but also in transportation and distribution stages. He stressed the importance of conducting comprehensive simulations to ensure that gas prices remain competitive, thereby supporting agricultural production.
He also noted that stable natural gas supplies are vital for ensuring national food security, as natural gas is the primary material in fertilizer production. Pupuk Kujang is one of the leading companies in this field, supporting the productivity of approximately 1.5 million farmers in the regions of West Java, Jakarta, and Banten.
Background & Context
Historically, Indonesia has faced challenges in securing natural gas supplies, which has impacted fertilizer production and consequently food security. For instance, in 2025, urea production decreased due to a gas supply shortage, resulting in a reduction of 123,000 tons in output.
These steps are part of government efforts to enhance energy independence and reduce reliance on imports. This reflects a broader trend towards strengthening energy infrastructure, including gas pipeline projects that connect different regions of the country.
Impact & Consequences
Focusing on the fertilizer sector in natural gas allocation may have positive effects on agricultural production in Indonesia, enhancing the country's ability to achieve food self-sufficiency. Additionally, stable natural gas prices will help maintain subsidized fertilizer prices, benefiting farmers.
Moreover, improving the stability of natural gas supplies will contribute to the government's goals for economic growth and achieving the Golden Indonesia 2045 vision, which aims to enhance food and energy security.
Regional Significance
Indonesia is one of the largest fertilizer producers in the world and plays a significant role in the global fertilizer market. Given the challenges faced by Arab countries in securing food supplies, Indonesia's experience could serve as a model for enhancing food independence through improved management of natural resources.
Furthermore, cooperation between Arab countries and Indonesia in the fields of energy and agriculture could open new avenues for strengthening food security in the region.