Indonesia Fertilizer Industry Research Report


Limited number of firms in the fertilizer industry along with higher subsidies on urea fertilizer is enhancing the production and demand of the product in the country.

New Delhi (I-Newswire) January 27, 2014 - The fertilizer industry of Indonesia has played a significant role in the country's economy by augmenting the production of food crops in the country. Agriculture sector has been one of the most important sectors with its contribution reaching USD 119,041.2 million growing at a CAGR of 18.2% during 2006-2012. However the fertilizer market of Indonesia is highly concentrated with five major firms being subsidiaries of state owned firm PT Pupuk Indonesia Holding Company. Concentration of competition in the fertilizer industry of Indonesia has resulted in limited innovation and increased production and consumption of urea and lesser focus on compound or complex fertilizers. The leading players in the urea fertilizer market include namely PT Pupuk Pusri, PT Pupuk Kujang, PT Pupuk Kaltim, PT Pupuk Iskandar Muda. Urea accounted for a tremendous 82.7% of the share in the nitrogen fertilizer market in 2012 growing at a CAGR of 4.3% during 2006-2012. However in the more recent years, these companies have been educating the farmers on the optimum usage of urea fertilizers which would help to decline the demand for urea and increase demand for phosphate and potash fertilizers in the country.

"Consolidation would be an important area of focus of the government in the coming years as the top ten phosphate fertilizer producers in China accounted for just about 50.0% of the total output in 2012 which was far below the target of the Chinese government of 70.0%." - According to the research report 'Indonesia Fertilizer Industry Outlook to 2017- Escalating Usage of Organic Fertilizers' by Ken Research.

In the coming years, urea would continue to be the leading fertilizer product of the Indonesia fertilizer market as the subsidy of the government is expected to swell in the coming years 2013-2017. This would drive the overall consumption of urea in the Indonesia fertilizer market to ~ thousand tons nutrients in 2017 growing at a CAGR of 4.0% during 2012-2017.

The report provides detailed overview on the fertilizer market in Indonesia and help reader to identify the ongoing trends in the key segments of the industry and anticipated growth in future depending upon changing industry dynamics in coming years. The report will aid industry consultants, fertilizer companies and marketing companies and other stakeholders to align their market centric strategies according to ongoing and expected trends in future.



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http://www.kenresearch.com/agriculture-food-beverages/agriculture-industry/indonesia-fertilizer-industry-research-report/449-104.html

http://www.kenresearch.com/press/news-indonesia-fertilizer-industry/230.html

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E-mail: ankur@kenresearch.com
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Industry > Agriculture

Published On:

January 27, 2014

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