The Australian Government has agreed to secure additional fertiliser supplies for domestic agriculture from Indonesia, with 250,000 tonnes of urea to be delivered through a commercial arrangement.
The deal, which involves Incitec Pivot Fertilisers and Indonesia’s state-owned produces, aims to reinforce fertiliser availability ahead of the winter cropping season, with volumes to be distributed through existing supply channels.
Prime Minister Albanese said the agreement demonstrates cooperation between Australia and Indonesia, highlighting the role of regional partnerships in supporting agricultural production and trade.
“This is a significant outcome for our farmers. We understand how critical fertiliser is for Australian farmers, for our food production system and the food security of our region,” the Prime Minister said.
“This deal also shows why it’s critically important that we have strong relationships with our regional partners.”
Minister for Foreign Affairs Penny Wong said the deal reflects broader regional cooperation on essential supplies.
“Australia is working with our international partners, particularly in our region, to strengthen our shared energy and food security,” Wong said.
“Indonesia is one of Australia’s closest neighbours and friends, and we thank the Indonesian Government for their partnership.
“The Albanese Government is focused on ensuring Australia gets the supplies we need – including petrol, diesel and fertiliser – and that those supplies can get where they’re needed.”
The agreement centres on urea, a key nitrogen input widely used across grain production and other agricultural sectors. The additional volume is expected to contribute to supply continuity during the current season.
Agriculture, fisheries, and forestry minister Julie Collins said the outcome followed close coordination with industry and government stakeholders.
“I have been working day and night with industry to support fertiliser getting to Australian farmers,” Collins said.
“I am very grateful for the cooperation and support of the Indonesian Government in finalising this.
“While this is a commercial deal, the Australian and Indonesian Governments have been working to support this positive outcome.
“This guarantees supply of fertiliser to Australian farmers at this critical time.
“This will mean Australia can continue to play an important role supporting food security in Indonesia and our region at a time of global uncertainty.”
Collins reiterated her appreciation for bilateral cooperation, stating: “I am very grateful for the cooperation and support of the Indonesian Government in finalising this.”
Incitec Pivot Limited confirmed the additional volumes would support its distribution network across Australia. President Scott Bowman said the agreement builds on existing trading relationships.
“Incitec Pivot’s trading relationship with PT Pupuk Indonesia, supported by the collaboration between the Australian and Indonesian governments, has yielded a positive outcome for Australian for Australian farmers,” Bowman said.
“This additional volume for the period May to December, at prevailing market prices, is another critical plank in servicing the needs of Australian farmers.
“Australian farm output is necessary for regional food security, and this is a crucial contribution to securing inputs via Australia’s largest fertiliser distributor, Incitec Pivot.
“Whilst there is more work to do to ensure farmers requirements can be fully met this upcoming season, this additional volume will go a long way to shoring up critical supplies to Australian farmers.”
In addition to the agreement, the federal government has implemented measures to support fertiliser import efficiency, including streamlining processes to facilitate timely delivery during peak demand periods.
The additional fertiliser volumes will move through established port, storage, and inland logistics networks.
