Asian countries are behind US and European countries in terms of achieving agricultural crop yield. The focus on improving crop yields has driven the demand for complex fertilizers in the Asian subcontinent over the past decade.

1. Indonesia Complex Fertilizer Market
Outlook Report : Ken Research

2. What is the scenario of asia complex
fertilizer market?
• Asian countries are behind US and European countries in terms of achieving agricultural crop yield.
The focus on improving crop yields has driven the demand for complex fertilizers in the Asian
subcontinent over the past decade. Asia complex fertilizer market registered moderate growth
during 2012-2017, growing at a CAGR of ~%, to register revenues worth USD ~ billion in 2017 as
compared to USD ~ billion in 2012. Moderate growth was due to decline in consumption of
complex fertilizers in certain key territories and slump in price of complex fertilizers, driven by
decline in cost of raw materials in international markets. Overall, complex fertilizer production in
Asia grew at a CAGR of ~% during 2012-2017, whereas consumption of complex fertilizers grew at a
CAGR of ~% during the same period.
• Indonesia was the largest consumer and producer of complex fertilizers in Asia and accounted for
about ~% of the market in 2017.
• India ranked second and comprised for ~% of the market share in 2017. Vietnam, Indonesia and
Thailand were other major countries utilizing complex fertilizers in Asia and accounted for ~%, ~%
and ~% market share respectively in 2017. All other Asian countries together comprised for
remaining ~% of the market.
• NPK 16-16-8 was the most widely used complex fertilizer in Asia and accounted for ~% market
share in overall complex fertilizer market in 2017. NPK 20-20-15 was the next popularly used
fertilizer grade and comprised for ~% market share in 2017. NPK 15-15-15 and NPK 20-20-0 were
other popularly used complex fertilizers which comprised for ~% and ~% market share respectively
in 2017. All other grades/formulas of complex fertilizers together comprised for about ~% of the
market share in 2017.

3. How has indonesia complex fertilizer
market performed?
• Indonesia complex fertilizer market is highly regulated and state-owned companies
have a monopoly in this sector. Farmers are supplied Indonesia NPK Fertilizer
Demand at highly subsidized rate. Although only NPK 15-15-15 is subsidized by the
government, the grade accounted for about ~% of overall NPK fertilizer
consumption in the country in 2017. The government has announced in its recent
plans to redirect government funds for fuel subsidies to improve agricultural
production by purchasing seeds and fertilizers.
• Indonesia lacks mineral resources of phosphate rock and potash to produce its
NPK requirements locally. However, local companies are making efforts to lessen
the countries dependence on importing finished NPKs. Petrokimia Gresik’s joint
venture with Jordan Phosphates Mines Company (JPMC) has led to the
establishment of Petro Jordan Abadi (PJA) phosphoric acid plant in Java, which
became operational in early 2014.
• Indonesia has been increasingly focusing on utilization of complex fertilizers in the
recent past. Consumption of NPKs has inclined from ~ million MT in 2012 to ~
million MT in 2017. This represents growth at a CAGR of ~% during the period
2012-2017.

4. • The market for complex fertilizers grew from USD ~ million in 2012 to USD
~ million in 2017, representing growth at a CAGR of ~% during the period
2012-2017. The market witnessed a slump during 2015-2016 due to fall in
prices of raw materials used for production of complex fertilizers.
• Indonesia imported about ~ thousand MT of NPK fertilizers during 2016,
majorly from Malaysia and Norway. Imports declined in 2016 by as much
as ~% as compared to 2015. Oversupply of NPK fertilizers in the domestic
market coupled with decrease in price of Urea, DAP and NPKs resulted in
decline in imports of the same in 2016. Overall, imports grew at a CAGR of
~% during 2012-2016 from ~ thousand MT in 2012 to ~ thousand MT in
2016.
• Malaysia and Norway were the two biggest exporters of NPK fertilizers to
Indonesia as of 2016, contributing about ~% and ~% of the overall NPK
imports of the country (in terms of volume). Belgium and Russia were
other important import destinations amongst several other countries in
2016 and resulted in ~% and ~% of the overall NPK fertilizer imports.

5. Which segments have outperformed?
• NPK 15-15-15 was by far the most widely used complex fertilizer in
Indonesia since this NPK grade is subsidized by Indonesian government.
The usage of this particular NPK fertilizer has grown at the fastest pace
during the last 5 years. NPK 12-10-20, NPK 15-7-20, NPK 20-10-20, NPK 15-
10-28, NPK 13-6-27 and NPK 16-16-16 were other popularly used complex
fertilizer grades in Indonesia.
• Indonesia largely produced and utilized high quality granulated or fused
complex fertilizers and was largely dominated by public sector companies.
The market was strictly regulated by the government and entities invested
quite heavily in setting up manufacturing facilities and producing high
quality complex fertilizers.
• Consumption of granulated fertilizers stood at ~ Million MT in 2017,
comprising for ~% market share of overall complex fertilizer consumption
in the country. On the other hand, consumption of blended complex
fertilizers stood at ~ Million MT in 2017 which accounted for ~%market
share of the overall complex fertilizer market in Indonesia.

6. How is competition structured?
• Indonesian complex fertilizer market is highly competitive and very largely
dominated by public sector. The market comprises of very few domestic
manufacturers, with state-owned companies almost having a monopoly in this
sector. The country’s domestic production has been sufficient to meet the
consumption demand in the last few years. Moreover, most NPK manufacturers
utilized advanced technology and produced high quality granulated/fused complex
fertilizers. The market is highly regulated and subsidized, with about 90% of
complex fertilizer consumption being subsidized.
• Indonesian complex fertilizer market is very concentrated with top 4 players
together comprising for ~% of the market share, in terms of revenue. Petrokimia
Gresik was the market leader by far, in terms of revenue, by accounting for ~%
market share in 2017. Pupuk Kalimantan Timur emerged as the second largest
player in this space and comprised for ~% market share. Pupuk Kujang and Pupuk
Sriwidjaya Palembang accounted for ~% and ~% market share, respectively. Several
other players including Yara International, Wilmar International and Malaysian
Agrifert-Kuoks comprised for the remaining ~% market share in 2017.

7. What are the growth prospects of
indonesia complex fertilizer market?
• Indonesia has a very balanced demand and supply equilibrium, with high level of regulation and
participation from the government. All the largest complex fertilizer manufacturing companies in
Indonesia are part of Indonesia Holding Company (public / state-owned enterprise) and over ~% of
the domestic consumption of complex fertilizers were subsidized by the government as of
December 2017. Since the country has been steadily increasing its utilization of complex fertilizers
over Urea and other mineral fertilizers and the government has been pushing local companies to
develop more complex fertilizer plants, complex fertilizer manufacturers are expected to keep
investing and expanding their manufacturing capabilities at least in the near future. Consumption
of complex fertilizers in Indonesia is expected to grow at a CAGR of ~% during the period 2017-
2022. Ken Research estimates the consumption of complex fertilizer to grow in the next five years,
rising from ~ million MT in 2018 to ~ million MT by 2022. Average selling prices of NPKs are most
likely to improve 2018 onwards owing to recovery in agricultural commodities’ prices.
• Most manufacturers produced high quality granulated/fused complex fertilizers in Indonesia since
the government provided subsidy on high-quality granulated/fused NPK 15-15-15 only. Hence,
production of complex fertilizers is expected to grow at healthy CAGR of ~% during 2017-2022,
inclining from ~ million MT in 2018 to ~ million MT by 2022. NPK 15-15-15 was the most widely
used complex fertilizer in Indonesian market, recording fastest growth during the last 5 years. Going
forward, utilization of NPK 15-15-15 is most likely to remain strong owing to balanced nutrient
composition and continued subsidy provided by the government.

8. • For more information on the research report, refer to below link
• https://www.kenresearch.com/agriculture-and-animal-care/crop-
protection/indonesia-complex-fertilizer-market/143969-104.html
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