Indonesia ships first urea cargo to Australia under G2G deal as export strategy shifts

The first export cargo of urea to Australia under a government-to-government (G2G) deal was shipped from Bontang yesterday, 14 May, according to Indonesian Minister of Agriculture Andi Amran Sulaiman.

The vessel, which carries 47,250t of urea from Pupuk Indonesia, is the first of a commitment by Indonesia to ship 250,000t under the G2G deal with Australia.

The Indonesian government plans to increase the volume to 500,000t, which would bring the total value of the deal to IDR 7 trillion ($398 million).

As reported previously, separate offtake deals had previously been concluded with Malaysia’s Petronas. Market reports advise that this covers up to 300,000t per year of urea under a long-term arrangement, with product able to be shipped to multiple markets.

Confirming earlier reports, the Minister of Agriculture added that other countries have also shown interest. This includes India, with market reports suggesting that negotiations are ongoing.

“Furthermore the Indian Ambassador has contacted me directly requesting 500,000t. Several other countries are also interested, including the Philippines, Brazil, Bangladesh, and several others,” he said in a statement published today.

As highlighted in prior coverage, the latest round of offtake deals and discussions signal a step change in the marketing approach for Indonesian granular urea. Until now, most product has been sold on a spot basis, primarily through sales tenders.

The last sales tender took place end-February for a March cargo. Just three cargoes have been sold via sales tenders this year.

Annual export volumes vary depending on domestic demand and operating rates. In 2025, exports stood at 1.72m. tonnes, compared to 1.41m. tonnes in 2024.