State-owned fertilizer major Pupuk Indonesia has signed an initial agreement with Algerian phosphate mining company Somiphos to source up to 1 million tonnes per year (t/yr) of phosphate rock. The company announced the development on 26 January, marking a key step toward strengthening Indonesia’s fertilizer raw material security.
According to Somiphos, the agreement is still at an early stage, and both parties have not yet discussed a detailed supply timeline. However, the proposed volumes indicate a long-term strategic intent rather than a short-term trading arrangement.
Somiphos Expansion Plans Support Long-Term Supply
Somiphos currently operates with a phosphate rock production capacity of around 2 million t/yr. The Algerian miner plans to expand capacity by an additional 500,000 t/yr over the next two years, taking total output to 3 million t/yr by 2027. This planned expansion aligns well with potential long-term supply commitments to Asian fertilizer producers, including Indonesia.
Indonesia Fully Dependent on Phosphate Rock Imports
Indonesia relies entirely on imports to meet its phosphate rock requirements. According to Global Trade Tracker (GTT) data, Indonesia imported around 1.4 million tonnes of phosphate rock during January–November 2025, with more than 60% sourced from Jordan.
The country imported about 169,000 tonnes of phosphate rock from Algeria in 2024, mainly through traders. However, Indonesia did not record any phosphate rock imports from Algeria in 2025, making the new agreement with Somiphos a notable shift in sourcing strategy.
Strategic Importance for Fertilizer Production
Phosphate rock is a critical raw material for Indonesia’s fertilizer industry. It is used both as a direct application fertilizer and as a key input for NPK fertilizer production. Securing diversified and stable phosphate rock supplies is essential for maintaining uninterrupted fertilizer output.
Pupuk Indonesia stated that increased imports from Algeria would strengthen raw material supply chains, reduce dependency on a limited number of supplier countries, and support Indonesia’s broader objective of sustainable food self-sufficiency.
Outlook
While the agreement remains preliminary, it signals Pupuk Indonesia’s intent to lock in long-term phosphate rock supplies amid rising global competition for fertilizer raw materials. If finalized, the deal with Somiphos could enhance Indonesia’s supply resilience and support stable fertilizer availability for the agricultural sector in the coming years.
