Indonesia and Algeria Partner to Boost Fertilizer Output

January 22, 2026 | 02:37 pm

TEMPO.CO, Jakarta - Deputy Minister of Agriculture Sudaryono is optimistic that the cooperation between state-owned fertilizer holding PT Pupuk Indonesia and the Algerian phosphate mining company Somiphos, a subsidiary of the Sonarem Group, can ensure the availability and affordability of fertilizers in the country.

"The phosphate cooperation with Algeria is a concrete step to strengthen the national fertilizer industry's upstream sector, so that production costs can be reduced and fertilizer prices for the people become more affordable," Sudaryono said in a statement received in Jakarta on Wednesday, January 21, 2026, as quoted from Antara.

The cooperation was realized through the signing of a Memorandum of Understanding (MoU) in Algiers, Algeria, on Tuesday, January 20, 2026. The MoU was signed by Somiphos CEO Mokhtar Lakhal and PT Pupuk Indonesia CEO Rahmad Pribadi, witnessed by the State Minister and Minister of Energy and Mining of Algeria, Mohamed Arkab.

The event was attended by several high-ranking officials from both countries, including the Indonesian Ambassador to Algeria and the leadership of the Sonarem Group.

This collaboration includes the study and development of opportunities for phosphate supply from Algeria to meet the national fertilizer industry's needs, as well as the exploration of mutual investments in phosphate mining and processing. As is known, phosphate is one of the strategic raw materials in fertilizer production, especially phosphate fertilizers, which play a crucial role in improving agricultural productivity.

Sudaryono views the dependency on imported raw materials as one of the factors affecting fertilizer cost structures. Therefore, medium and long-term partnerships with producing countries are considered crucial to strengthen national food security.

By expanding the sources of raw materials and establishing mutually beneficial strategic partnerships, Sudaryono stated that the government is not only preserving the sustainability of the national fertilizer industry. "But also fulfilling the President's mandate to protect farmers as the backbone of Indonesia's food security," he said.

The Memorandum of Understanding is valid for 18 months and includes joint preliminary studies to assess the technical and economic feasibility of the project, data exchange, and the development of cooperation opportunities at the initial stage of phosphate processing industries.

The results of this cooperation are expected to create added value, improve the efficiency of the national fertilizer industry, and support the government's program toward food self-sufficiency.

Furthermore, Sudaryono explained that the working visit to Algeria, which took place on January 19-21, was carried out with the management of Pupuk Indonesia as part of efforts to secure fertilizer raw material supplies.

"We not only want to purchase raw materials but also control their sources in the home country and develop the industry. By doing so, we can provide high-quality fertilizers, sufficient volume, and further reduced prices," he said.

Meanwhile, PT Pupuk Indonesia CEO Rahmad Pribadi emphasized the company's commitment to support the government in achieving national food security through securing fertilizer raw material supplies. "This step is important to ensure the availability of raw materials so that fertilizers can be produced and distributed at affordable prices for Indonesian farmers."

Read: Bahlil's Fingerprints on the Fakfak Fertilizer Project

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