Danantara CEO Reveals Plan For Indonesia-Jordan To Expand Fertilizer Production Partnership

Jakarta, Indonesia - Indonesia and the Hashemite Kingdom of Jordan are set to significantly expand their strategic collaboration in the fertilizer sector. The announcement was made by Indonesia's Investment Minister and CEO of the sovereign wealth fund Danantara, Rosan Roeslani, following a high-level bilateral meeting between President Prabowo Subianto and Jordan's King Abdullah II in Jakarta. This move aims to strengthen Indonesia's upstream self-sufficiency and secure a stable, competitive domestic supply of fertilizers, which are vital for the national agricultural sector and food security programs.

The core of the planned expansion revolves around phosphate, a critical raw material for fertilizer production. Jordan is a global powerhouse in this commodity, ranking as the world's fifth-largest holder of phosphate reserves through the state-owned Jordan Phosphate Mines Company (JPMC). Indonesia, in contrast, is one of Southeast Asia's largest fertilizer consumers and relies on imports to meet its agricultural demands. The existing foundation for this partnership is PT Petro Jordan Abadi (PJA), a joint venture between Indonesia's PT Petrokimia Gresik and JPMC established in Gresik.

Rosan Roeslani revealed that the collaboration, which is already 50% operational in Indonesia through PJA, is poised for further growth. Discussions are underway to potentially increase investment in phosphate and also explore cooperation in potash, another key fertilizer ingredient where Jordan is a major global producer. The goal is to develop a more robust and sustainable fertilizer security framework for Indonesia by leveraging Jordan's abundant raw materials.

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This initiative aligns directly with President Prabowo Subianto's national priority of ensuring fertilizer and food security. His administration has been actively working to revitalize state-owned fertilizer plants and stabilize supply for farmers. A deeper, long-term partnership with Jordan for raw material supply is seen as a strategic move to support these domestic policies and reduce vulnerability to global market fluctuations.

Beyond securing raw materials, the partnership has a broader regional vision. Indonesian Agriculture Minister Andi Amran Sulaiman has previously proposed the formation of a joint company to supply fertilizer not only to Indonesia and Jordan but also to the wider Southeast Asian and Asian markets. Such an expansion could significantly reduce fertilizer costs across the region and position the Indonesia-Jordan partnership as a key player in the Asian agricultural input sector.

The fertilizer talks were part of a wider series of economic discussions during King Abdullah II's state visit. In a separate meeting with Danantara, the Jordanian King also extended an invitation for the Indonesian fund to invest in major infrastructure projects in Jordan, including a gas pipeline and a toll road, with a combined value of approximately $1.3 billion. This indicates a mutual interest in deepening economic ties across multiple strategic sectors.

For Indonesia, the expanded fertilizer cooperation promises multiple benefits. It aims to attract investment, strengthen upstream self-sufficiency in the chemical industry, and ensure a stable supply for farmers. Officials have stated that the partnership could significantly reduce fertilizer costs, with Indonesia's high domestic demand being efficiently complemented by Jordan's raw material abundance. The existing PJA joint venture has already been profitable, reportedly bringing in around $20 million in profit for Indonesia.

As next steps, the plans will be followed up through further evaluation and technical discussions. Rosan Roeslani indicated that Danantara would send a team to Jordan in December 2025 to explore the opportunities in greater detail. This high-level commitment signals a new chapter in bilateral relations, one where collaborative industrial production is harnessed to address fundamental challenges of food security and agricultural sustainability for Indonesia.

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Agricultural Cooperation Danantara Rosan Roeslani Indonesia Jordan Fertilizer Partnership Jordan Phosphate Mines Company Phosphate Production Expansion