ERIA Field Survey Examines Impact of Hormuz Strait Closure on Indonesia's Fertiliser Supply Chain
Pontianak, 22–24 July 2026: ERIA conducted a field survey in West Kalimantan, Indonesia, as part of the study Assessment of the Fertiliser Supply Chain: Toward Sustainable and Resilient Supply Chains during Crises.
The survey sought to capture field-level realities and first-hand perspectives from key stakeholders to better understand how global geopolitical disruptions – particularly the closure of the Strait of Hormuz – have affected Indonesia's fertiliser supply chain and agricultural sector.
In collaboration with the Indonesian Center for Agricultural Socio-Economic and Policy Studies (ICASEPS), ERIA carried out field observations and interviews with a wide range of stakeholders, including:
- PT Pupuk Indonesia, the state-owned fertiliser holding company
- fertiliser distributors and retailers
- a non-subsidised fertiliser producer
- oil palm farmers' co-operatives
- smallholder oil palm farmer associations
- the Indonesian Palm Oil Association (IPOA)
- provincial government officials
Discussions focused on the impacts of the disruption, current government responses, challenges faced by stakeholders, and potential measures to strengthen supply chain resilience.
Preliminary findings indicate markedly different impacts on Indonesia's subsidised and non-subsidised fertiliser markets. Subsidised fertilisers for strategic food crops, such as rice and maize, have experienced distribution delays as a result of higher fuel prices and transportation costs, leading to temporary localised shortages.
The impact has been even more pronounced in the non-subsidised fertiliser market. Prices have reportedly risen by as much as 100%, driven by constrained supplies and an almost 40% increase in distribution costs. In response, many farmers have reduced fertiliser application rates, raising concerns about future agricultural productivity.
The study will provide evidence-based policy recommendations to strengthen the resilience and sustainability of fertiliser supply chains, mitigate the impacts of future crises, and help ensure reliable and affordable access to fertilisers for farmers.
The study's findings and policy recommendations will be presented at the ASEAN Ministers on Agriculture and Forestry (AMAF) Meeting in October 2026.







