THE PROSPECT OF INDONESIA FERTILIZER
INDUSTRY AND MARKET IS BRIGHT
Based on the ECBIS Rescons research, currently one of the industrial sectors that still have good prospects is the fertilizer industry. Many factors support the development of this industry, including promising domestic and foreign markets.
There are two types of fertilizers marketed in the international market, namely organic fertilizers and inorganic fertilizers. According to data compiled by the Central Statistics Agency, in the last five years, Indonesia's organic fertilizer exports have experienced a high increase. If in 2016 the export of various types of Indonesian organic fertilizers was only recorded at 132,305 tons with a value of US$ 36.9 million, that number jumped to 241,014 tons with a value of US$ 64.5 million in 2017. in 2019 it rose again to 205,931 tons with a value of US$ 61.0 million.
Meanwhile, in 2020, due to the impact of the coronavirus, many industrial sectors had difficulty marketing their products. However, fertilizer businesses managed to increase their sales. Last year's exports reached 286,148 tons. There was an increase of 38.95% compared to the previous year which was recorded at 205,931 tons. When viewed from the value, there was also a fairly large jump. The value of export increased around 22.77% from US$ 61.0 million in 2019 to US$ 74.9 million in 2020.
The same thing happened to the export of inorganic fertilizers such as urea fertilizer, NPK fertilizer, ZA fertilizer, and others. In total, Indonesia's fertilizer exports in 2020 were recorded at 2,423 thousand tons, this means an increase of 90.78% compared to the previous year which reached 1,270 thousand tons (see table 1).
Seeing the development of exports which tend to continue to increase, proves that the potential of the foreign fertilizer market is still quite promising. Of course, The increase in exports is also due to the incessant efforts of entrepreneurs to expand their marketing objectives to various countries.
Table – 1
The Progress of Fertilizer Export in Indonesia 2016 – 2020
Local Needs Tend to Increase
It is not only foreign markets that are promising, for the domestic market there are also very large opportunities. It is proven that until now there are still many foreign fertilizer suppliers who are involved in the fertilizer business in Indonesia. This can be seen clearly through the development of imports in the last few years.
According to the Central Statistics Agency documents, Indonesia's fertilizer imports in 2016 were recorded at 6,891 thousand tons with a value of US$ 1,555.5 million. With details of 810 thousand tons of organic fertilizer and 6,081 thousand tons of inorganic fertilizer. The next two years, 2018 and 2019 continued to decline. In 2018, the import volume was 8,088 thousand tons, with details of 901 thousand tons of organic fertilizer and 7,186 thousand tons of inorganic fertilizer. In 2020 imports rose again as shown in table 2.
From the two tables above, it can be concluded that the prospects for the fertilizer industry and market in Indonesia in the next few years are still quite good. Entrepreneurs have great opportunities to market their products both for local and international markets.
Table – 2
The Progress of Fertilizer Import in Indonesia 2016 – 2020
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