The MoU was signed by Pupuk Indonesia President Director Rahmad Pribadi and Somiphos President Director Mokhtar Lekhal in Algeria on Tuesday.
The agreement aims to ensure the long-term availability of rock phosphate, a key raw material in fertilizer production, to support Indonesia’s national food self-sufficiency program.
Under the cooperation, Pupuk Indonesia will receive phosphate supply support of up to 1 million tons per year for domestic fertilizer production.
The agreement also opens opportunities for joint investment in phosphate mining, processing, and downstream phosphate-based fertilizer projects in Algeria.
Rahmad Pribadi said the partnership is part of Pupuk Indonesia’s strategy to strengthen the upstream supply chain and reduce dependence on imported raw materials.
He added that securing sustainable access to phosphate is essential to maintaining fertilizer availability and affordability for farmers.
The signing was witnessed by Indonesia’s Deputy Minister of Agriculture Sudaryono, Algeria’s Minister of Energy and Mining Mohamed Arkab, CEO of Sonarem Group Reda Belhaj, and other stakeholders.
Deputy Minister of Agriculture Sudaryono stated that the cooperation aligns with President Prabowo Subianto’s directive to strengthen fertilizer raw material supply chains and lower fertilizer production costs.
He explained that long-term partnerships are needed to reduce cost pressures caused by reliance on imported inputs and to improve farmers’ welfare.
“This cooperation is a concrete step to strengthen the upstream fertilizer industry so that production costs can be reduced and fertilizer prices for farmers become more affordable,” Sudaryono said.
Minister Mohamed Arkab said the agreement reflects Algeria’s commitment to expanding economic cooperation with partner countries, particularly in strategic mining sectors such as phosphate.
He noted that the partnership supports Algeria’s efforts to develop value-added industries, promote investment, and facilitate technology transfer.
In addition to Somiphos, Pupuk Indonesia is also exploring potential cooperation with Algeria’s state-owned oil and gas company Sonatrach to develop an integrated fertilizer industry ecosystem in Algeria, supported by the country’s competitive gas prices.
Somiphos is a state-owned Algerian company engaged in phosphate exploration, mining, processing, and marketing. It operates in the Djebel Onk mining area in Tebessa, eastern Algeria, one of the country’s largest phosphate deposits, and is part of the SONAREM Group.
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Reporter: Martha Herlinawati Simanjuntak
Editor: Yuni Arisandy Sinaga
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