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Strategic Move: Indonesia-Jordan Fertilizer Partnership Eyes Regional Market Role
Plans are advancing for Indonesia and Jordan to transform their bilateral fertilizer cooperation into a regional supply platform, aiming to lower costs and improve access for Southeast Asian farmers. (Dok. Istimewa)
Jakarta, Indonesia - Indonesia and Jordan are elevating their economic partnership with a forward-looking plan to expand collaborative fertilizer production, potentially reshaping supply dynamics in Southeast Asia. The initiative gained momentum during the Jakarta visit of Jordan's King Abdullah II, which featured top-level meetings with President Prabowo Subianto and executives from Indonesia's sovereign wealth fund, Danantara. The collaboration aims to merge Jordan's strengths as a global producer of phosphate and potash with Indonesia's strategic location and large market to serve a broader regional role.
The existing collaboration is anchored by PT Petro Jordan Abadi (PJA), a successful joint venture between Indonesia's PT Petrokimia Gresik and the Jordan Phosphate Mines Company (JPMC) located in Gresik. Danantara CEO Rosan Roeslani confirmed that the partnership, which is already 50% operational in Indonesia, is targeted for significant growth. The expansion talks include potentially increasing investment in phosphate activities and exploring joint opportunities in potash, another key fertilizer component abundantly available in Jordan.
A bold vision for the partnership's future involves serving markets beyond the two nations. Indonesian Agriculture Minister Andi Amran Sulaiman has championed the concept of establishing a joint company that would supply fertilizer to Indonesia, Jordan, and the wider Southeast Asian and Asian region. This initiative is driven by the potential to significantly reduce fertilizer costs through economies of scale and direct access to raw materials, thereby enhancing food security across multiple countries.
This expansion plan is strategically timed with Indonesia's domestic policy focus. President Prabowo Subianto has made fertilizer affordability and availability a cornerstone of his food security program, which includes revitalizing state-owned plants and implementing a 20% price cut for farmers. A secure, long-term partnership with a raw material supplier like Jordan provides a foundational support for these domestic measures, aiming to insulate the agricultural sector from external market shocks.
The fertilizer discussions occurred within a wider context of strengthened bilateral relations. King Abdullah II's visit also served as an opportunity to invite Indonesian investment into Jordan's infrastructure sector, with projects worth an estimated $1.3 billion in gas pipelines and toll roads presented to Danantara. This multi-faceted engagement highlights a relationship maturing from diplomatic exchanges into substantive, investment-led partnerships in strategic industries.
The economic rationale for Indonesia is compelling. The country is a major fertilizer consumer in Southeast Asia but relies on imports for key inputs. In 2023, Indonesia imported over $120 million worth of fertilizers from Jordan. By expanding the joint production model, Indonesia seeks to gain greater control over its supply chain, attract foreign investment into its chemical industry, and secure a stable flow of essential agricultural inputs at competitive prices.
Practical steps are now underway to translate the agreement into action. Rosan Roeslani stated that Danantara would conduct a detailed evaluation and plans to send a technical team to Jordan in December 2025 to explore the proposed expansion and new investment areas. The existing joint venture's profitability, with reported earnings of around $20 million for Indonesia, provides a solid track record upon which to build this larger ambition.
By pursuing this expanded partnership, Indonesia is not only securing its own agricultural needs but also positioning itself as a potential hub for fertilizer production and distribution in the region. This move signifies a strategic approach to economic diplomacy, leveraging partnerships to address critical national interests while creating opportunities for regional leadership in food security.
(Bassam Raza)
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