Albanese Government Facilitates Major Urea Deal with Indonesia for Australian Farmers
The Albanese government has successfully facilitated a significant agreement to secure an additional 250,000 tonnes of agricultural-grade urea from Indonesia, providing a crucial boost for Australian farmers. This deal, negotiated between Incitec Pivot Fertilisers and PT Pupuk Indonesia, addresses approximately 20 percent of the remaining fertiliser requirements for the current season, which spans from November 2025 to October 2026.
Government officials assert that locking in this extra supply will offer greater certainty to farmers as they make critical planting and management decisions for the upcoming season. Prime Minister Anthony Albanese emphasized the importance of this outcome, stating it is "a significant outcome for our farmers". He highlighted the critical role of fertiliser in Australia's food production system and regional food security, noting that "this deal also shows why it’s critically important that we have strong relationships with our regional partners".
Business and Government Leaders Welcome the Agreement
The President of Incitec Pivot Limited, Scott Bowman, welcomed the deal, describing it as "a positive outcome for Australian farmers". He explained that this additional volume, available from May to December at prevailing market prices, serves as another critical component in meeting the needs of Australian farmers. Bowman added, "Australian farm output is necessary for regional food security, and this is a crucial contribution to securing inputs via Australia’s largest fertiliser distributor, Incitec Pivot". While acknowledging that more work is needed to fully meet farmer requirements for the upcoming season, he noted that this extra supply will significantly bolster critical supplies.
Agriculture Minister Julie Collins highlighted the mutual benefits of the agreement, stating that Indonesia will also gain from the deal. She said, "This will mean Australia can continue to play an important role supporting food security in Indonesia and our region at a time of global uncertainty". Collins expressed gratitude for the cooperation and support of the Indonesian government in finalising the arrangement.
Strengthening Regional Trade and Food Security
Indonesia stands as Australia's fourth largest export market for Agriculture, Fisheries and Forestry exports, with trade valued at over $4.7 billion in 2025. Under the Albanese Labor Government, this trade has grown by 18 percent, reflecting deepening economic ties. The Prime Minister and his ministers have committed to continuing work with regional partners to support both food and energy security, emphasizing the shared interests of Australia and its neighbours.
This urea deal not only addresses immediate agricultural needs but also reinforces the strategic importance of regional partnerships in ensuring stable supply chains and enhancing food security across the Asia-Pacific region.
