Australia secures fertiliser deal with Indonesia
Australia has signed a deal to secure thousands of tonnes of nitrogen-rich fertilizer known as urea from Indonesia, amid disruption caused by the conflict in Iran.
The federal government helped broker the deal between Incitec Pivot Fertilizers and PT Pupuk Indonesia during a major trade tour in the region chaired by Prime Minister Anthony Albanese.
Mr Albanese said the agreement demonstrated the critical importance of strong relationships with Australia’s regional partners.
“We understand how critical fertilizer is to Australian farmers, our food production system and the food security of our region,” he said.
Sixty percent of Australia’s supply of urea for fertilizer passes through the Strait of Hormuz, which has been closed since US-Israeli attacks on Iran in February.
Agriculture Minister Julie Collins said she was working around the clock with industry to support the supply of fertilizer to Australian farmers.
“This ensures the supply of fertilizer to Australian farmers at this critical time,” he said.
“While this is a commercial agreement, the Australian and Indonesian governments are working to support this positive outcome.”
Australia plays a key role in supporting food security in Indonesia, which is Australia’s fourth largest export market for agricultural, fisheries and forestry exports, worth more than $4.7 billion in 2025.
Incitec Pivot President Scott Bowman said there was still work to be done to ensure farmers’ needs could be fully met next season, but the additional volume would go a long way to support supply.
“This additional volume for the May-December period at prevailing market prices is another critical plan to meet the needs of Australian farmers,” he said.
Mr Albanese cut short his trading tour while in Malaysia on Thursday and flew straight back to Geelong following a massive fire at one of the country’s two fuel refineries.
While the fire only damaged part of the facility, it is feared it could lead to fuel shortages, particularly in parts of Victoria.
It had previously announced that Australia had secured an additional 100 million liters of diesel from Brunei and South Korea using its new strategic reserve powers.
