The growing preference for fertilisers that provide nutrients such as nitrogen, phosphorous and calcium in one easily undertaken treatment bodes well for foreign investors in more ways than one.
First, there exists considerable scope for international companies to fill the gap in domestic production of mixed compound fertilisers and set up operations in Indonesia.
Foreign investors able to identify and secure a long term supply of a handful of raw materials not easily found in Indonesia such as phosphoric rock and potash are especially encouraged to take advantage of this opportunity.
It is also worth noting that Indonesia’s government has begun hinting at an eventual end to fertiliser subsidies in favour of other initiatives to raise productivity such as the construction of agricultural infrastructure.
Should this shift in policy come to pass, Indonesia’s already sizeable market for fertiliser will swell to include the many smallholders currently served by government subsidised products. .
(Source: Global Business Guide Indonesia)