Pupuk Indonesia and Somiphos establish phosphate cooperation

“Rock phosphate is the main raw material for the fertilizer industry and can only be obtained through mining. Pupuk Indonesia needs it to produce fertilizer. This cooperation with Somiphos is intended to ensure the sustainability of raw material supplies, in order to secure domestic fertilizer needs and as a form of commitment to sustainable national food self-sufficiency,” Rahmad stated.

Through this cooperation, Pupuk Indonesia will receive support for the supply of up to 1 million tpy of rock phosphate for domestic needs, while also opening opportunities to collaborate with several companies in Algeria to develop integrated phosphate-based fertilizer industry projects.

This agreement aims to build partnerships in developing cooperation opportunities in the phosphate sector, particularly the potential supply of Algerian phosphate to Pupuk Indonesia. In addition, it explores opportunities for joint investment in phosphate exploitation and processing activities in Algeria, as well as the development of projects related to downstream phosphate products.

“Therefore, Pupuk Indonesia welcomes the cooperation with Somiphos and the Sonarem Group. This collaboration can ensure the sustainability of food self-sufficiency through fulfilment of fertilizer raw materials, in this case phosphate,” he said.

The signing of the MoU was witnessed by the Deputy Minister of Agriculture of the Republic of Indonesia, Sudaryono; the Minister of State, Minister of Energy and Mining of Algeria, Mohamed Arkab; the CEO of the Sonarem Group, Reda Belhaj; and related stakeholders.

Deputy Minister of Agriculture Sudaryono stated that this cooperation is part of the implementation of the directive of the President of the Republic of Indonesia, Prabowo Subianto, to strengthen the supply chain of fertilizer raw materials and reduce fertilizer prices for the welfare of Indonesian farmers. He added that dependence on imported raw materials has been one of the factors affecting fertilizer cost structures. Therefore, long-term partnerships are considered essential to strengthen national food security.

“President Prabowo Subianto has given very clear instructions that the state must be present to ensure fertilizers are available, affordable, and delivered on time to farmers. This phosphate cooperation with Algeria is a concrete step to strengthen the upstream side of the national fertilizer industry so that production costs can be reduced and fertilizer prices for the people become more affordable,” said the Deputy Minister.

“The results of this cooperation are expected to create added value, improve the efficiency of the national fertilizer industry, and support government programmes to achieve food self-sufficiency,” he added.

The Minister of State and Minister of Energy and Mining of Algeria, Mohamed Arkab, emphasised that the signing of this MoU is part of the direction of the Algerian President aimed at strengthening economic partnerships with friendly countries, particularly in the strategic mining sector (especially phosphate). This sector is considered a key pillar in the process of national economic diversification, industrial processing development, and value creation.

He stressed that this partnership is important in supporting Algeria–Indonesia cooperation, as well as encouraging productive investment and the transfer of experience and technology for the mutual benefit of both countries.

In addition to Somiphos, Pupuk Indonesia is also exploring cooperation with Sonatrach, Algeria’s state-owned oil and gas company, in order to create a fertilizer industry ecosystem in Algeria. “With the availability and affordable price of gas in Algeria, we can work together to develop an integrated fertilizer industry ecosystem in Algeria, whose products can be used to meet national needs,” Rahmad Pribadi added.

Read the article online at: https://www.worldfertilizer.com/phosphates/28012026/pupuk-indonesia-and-somiphos-establish-phosphate-cooperation/