The Albanese Labor Government has worked with industry and the Indonesian Government to facilitate 250,000 tonnes of additional agricultural grade urea for Australian farmers from Indonesia.
This deal, between Incitec Pivot Fertilisers and PT Pupuk Indonesia, supported by the Australian and Indonesian Governments, facilitates around 20 per cent of the remaining fertiliser needed for the current season.
The Government is working closely with Australia's key international partners and domestic industry to secure critical additional fertiliser supply.
Having this additional supply locked in will give greater certainty for farmers as they make planting and management decisions for this season.
This is a demonstration of the close partnership and friendship between Australia and Indonesia.
The Government will continue to work with partners across the region to support food and energy security, in the interests of Australia and our neighbours.
Australia plays a critical role supporting food security in Indonesia, and across our region, which this agreement helps strengthen.
This significant new agreement builds on the Government's work to help get fertiliser to Australian farmers, including:
- Joint Leaders' Statement with Brunei Darussalam committing to cooperation on food security and resilient supply chains for food production
- Establishing a Fertiliser Supply Working Group between Government and industry
- Amending legislation to underwrite the purchase of fuel and fertiliser by the private sector
- Streamlined border processes for imported fertiliser.
Quotes attributable to Prime Minister Anthony Albanese:
"This is 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.
"This deal also shows why it's critically important that we have strong relationships with our regional partners."
Quotes attributable to Minister for Foreign Affairs, Penny Wong:
"Australia is working with our international partners, particularly in our region, to strengthen our shared energy and food security.
"Indonesia is one of Australia's closest neighbours and friends, and we thank the Indonesian Government for their partnership.
"The Albanese Government is focused on ensuring Australia gets the supplies we need - including petrol, diesel and fertiliser - and that those supplies can get where they're needed."
Quotes attributable to Minister for Agriculture, Fisheries and Forestry, Julie Collins:
"I have been working day and night with industry to support fertiliser getting to Australian farmers.
"I am very grateful for the cooperation and support of the Indonesian Government in finalising this.
"While this is a commercial deal, the Australian and Indonesian Governments have been working to support this positive outcome.
"This guarantees supply of fertiliser to Australian farmers at this critical time.
"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."
"I am very grateful for the cooperation and support of the Indonesian Government in finalising this"
Quotes attributable to Scott Bowman, President, Incitec Pivot Limited:
"Incitec Pivot's trading relationship with PT Pupuk Indonesia, supported by the collaboration between the Australian and Indonesian governments, has yielded a positive outcome for Australian 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.
"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"
