Indonesia Fertilizer Companies (2024 - 2029)

Indonesia Fertilizer Market Companies Summary

The fertilizer market in Indonesia experienced significant disruption due to the COVID-19 pandemic, with production falling and prices increasing due to supply constraints. The industry also faced severe labor shortages due to repeated lockdowns, affecting production, export, and import business. Despite these challenges, long-term projections anticipate continuous expansion of Indonesian fertilizer production, particularly for urea-based fertilizers. This increase is primarily driven by demand from the plantation industry, as the country is a major exporter of rubber and cocoa and a significant importer of fertilizers. The Ministry of Agriculture of Indonesia plays a crucial role in regulating and monitoring standards that affect farmer productivity. This includes eliminating the use of fake fertilizer, bad seed, and dangerous pesticides to address the root cause of decreased land productivity. The nitrogenous segment, particularly urea, is the largest segment of the market. With increasing food demand and a growing population, the country needs to improve food crop productivity, which can be achieved by increasing cropping intensity and providing appropriate fertilizers. These factors are expected to drive market growth. The market is also positively influenced by an increase in arable land in the country, as well as improved agricultural development, commercialization, industrialization, and urbanization.