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Posted by David Sexton
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17 April, 2026
A COMMERCIAL deal between Incitec Pivot Fertilisers and PT Pupuk Indonesia is to see a quarter of a million tonnes of additional agricultural grade urea shipped to Australia.
The fertiliser deal was backed by the governments of both Australia and Indonesia and amounts to about 20% of the remaining fertiliser needed for the current season.
Prime Minister Anthony Albanese said the agreement was “a significant outcome for our farmers”.
“We understand how critical fertiliser is for Australian farmers, for our food production system and the food security of our region,” Mr Albanese said.
“This deal also shows why it’s critically important that we have strong relationships with our regional partners.”
Incitec Pivot president Scott Bowman said their trading relationship with PT Pupuk Indonesia, supported by the collaboration between the Australian and Indonesian governments, had yielded “a positive outcome for Australian farmers”.
“This additional volume for the period May to December, at prevailing market prices, is another critical plank in servicing the needs of Australian farmers,” Mr Bowman said.
“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.
“Whilst there is more work to do to ensure farmers requirements can be fully met this upcoming season, this additional volume will go a long way to shoring up critical supplies to Australian farmers.”
Foreign affairs minister Penny Wong said Australia was working with its regional to strengthen energy and food security.
“Indonesia is one of Australia's closest neighbours and friends, and we thank the Indonesian government for their partnership,” Senator Wong said.
Agriculture minister Julie Collins said she was grateful for the cooperation and support of the Indonesian government.
"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,” she said.
National Farmers Federation president, Hamish McIntyre said the agreement was a “very welcome step and will go a long way to restoring confidence for farmers heading into the winter growing season”.
“We acknowledge the government has worked closely with industry to get to this point.
“The establishment of a fertiliser taskforce, underwriting of fuel and fertiliser imports, streamlining border processes, and the deferral of increased export cost recovery have been a direct result of member driven advocacy by the NFF and important steps in easing pressure on farmers,” Mr McIntyre said.
“There is still more work to do. This only fills part of the gap, and farmers are still facing tight supply and high costs.”
