Indonesian Firm Pupuk Kaltim Leads Bid for Australia’s Top Fertiliser Producer Incitec Pivot, Stirs Concern Among Farmers

Australia’s leading fertiliser manufacturer, Incitec Pivot Limited (IPL), is at the center of a potential acquisition by Indonesian state-owned company, Pupuk Kaltim, raising concerns among local farmers. IPL confirmed to the Australian Stock Exchange that it had received multiple offers for its fertiliser business, with Pupuk Kaltim emerging as the frontrunner.

Fertilisers such as urea, ammonia, and NPK — a blend of nitrogen, phosphorus, and potassium — are vital to enhance pastures and crops. IPL, which manufactures these products at facilities in Phosphate Hill, Gibson Island, and Geelong, was previously the sole producer of urea in Australia. The potential acquisition has sparked concern among farmers who rely on these products for their livelihood.

Pupuk Kaltim, which operates numerous fertiliser plants, is seeking to increase its supplies to bolster food security in Indonesia. However, the Australian farming community is anxious about the potential foreign ownership of a critical domestic resource.

National Farmers Federation Vice President David David Jochinke emphasized the importance of maintaining local control over key resources, pointing to the lessons learned from the pandemic. He called for the capacity to boost local production and stressed the need for any decisions by the Foreign Investment Review Board to prioritize farmers’ interests.

“We need more capacity, the ability for companies to ramp up their production in Australia,” Jochinke said. While he acknowledged the necessity of capital for manufacturing development, he hopes for an investor who understands the fertiliser industry, has Australia’s best interests at heart, and can expand this sector.ing the potential acquisition as aning could spur Australian superannuation funds to make a bid for IPL.