We would appreciate your comments
Business
Indonesia And Jordan Forge Deeper Ties With Fertilizer Production Expansion
High-level talks in Jakarta have resulted in a commitment to expand the Indonesia-Jordan fertilizer production partnership, key to supporting President Prabowo's food self-sufficiency goals. (Dok. Istimewa)
Jakarta, Indonesia - A new chapter in economic diplomacy is unfolding as Indonesia and Jordan agree to scale up their cooperation in the strategic fertilizer industry. The commitment was solidified during the recent state visit of Jordan's King Abdullah II to Indonesia, which included a bilateral meeting with President Prabowo Subianto and a dedicated discussion with the leadership of Indonesia's sovereign wealth fund, Danantara. The partnership directly supports President Prabowo's national agenda, which has placed fertilizer security and price stability at the forefront of the drive for food self-sufficiency.
The expansion will build upon a long-standing joint venture in phosphate production. For over a decade, PT Petrokimia Gresik and the Jordan Phosphate Mines Company (JPMC) have operated PT Petro Jordan Abadi (PJA) in Gresik. Rosan Roeslani, Indonesia's Investment Minister and Danantara CEO, noted that this existing venture has been profitable and provides a strong foundation for growth. The new plan involves exploring a larger-scale collaboration, which could include increased investment in phosphate and potential ventures into potash production in Jordan itself.
Jordan's role as a global supplier of critical fertilizer inputs makes it an ideal partner for Indonesia. The Jordan Phosphate Mines Company is a major international producer, and the country holds the world's fifth-largest phosphate reserves. Furthermore, Jordan is a significant producer of potash. Indonesia, with its vast agricultural sector, requires massive amounts of these materials, importing over $120 million worth of fertilizers from Jordan in 2023 alone. This synergy forms the basis for a mutually beneficial, long-term supply chain partnership.
The strategic importance of this cooperation extends beyond bilateral trade. Indonesian officials envision the partnership evolving into a regional supply hub. Agriculture Minister Andi Amran Sulaiman has proposed the idea of a joint company that could cater to the broader Southeast Asian and Asian markets. By leveraging economies of scale and secure raw material access, such an entity could help lower fertilizer costs across the region, enhancing food security for multiple nations.
The discussion on fertilizer was part of a comprehensive economic dialogue. King Abdullah II also met directly with Danantara to discuss wider investment opportunities, inviting the fund to participate in major Jordanian infrastructure projects valued at around $1.3 billion. This multi-sector engagement underscores a mutual desire to build a broad-based and resilient economic relationship, moving beyond traditional diplomacy into concrete commercial and industrial collaboration.
For the Indonesian government, securing a stable and cost-effective supply of fertilizer is a domestic imperative. President Prabowo's administration has actively intervened in the fertilizer market, including a recent move to cut prices by 20 percent, to support farmers. A deepened partnership with Jordan at the upstream raw material level is a strategic policy to underpin these domestic measures, reduce import dependency, and shield the agricultural sector from volatile global price swings.
The next phase involves concrete follow-up actions. Danantara CEO Rosan Roeslani stated that the fund would undertake evaluations and dispatch a team to Jordan in December 2025 to further assess the opportunities. The existing success of the PJA joint venture, which has reportedly generated about $20 million in profit for Indonesia, provides a confident blueprint for this expanded vision.
This agreement marks a significant step in Indonesia's pursuit of strategic autonomy in essential commodities. By deepening ties with a resource-rich partner like Jordan, Indonesia is not only addressing immediate agricultural needs but also constructing a more resilient and self-sufficient foundation for its long-term food security and economic stability.
(Hashim Zafran)
Read Too: Pertamina Fuels Shell's Return: 100,000-Barrel Deal Ends Gasoline Drought
Tag:
Comments are your responsibility according to the ITE Law.
