Jakarta. Fertilizer company Pupuk Indonesia announced a partnership with Algerian phosphate mining company Somiphos.

The two companies inked a memorandum of understanding on the development of the phosphate industry in Algeria on Tuesday local time. Pupuk Indonesia said that this could help the company to back Indonesia's food self-sufficiency goal by ensuring the availability of fertilizers for farmers.

"Rock phosphate is a primary raw material for the fertilizer industry and can only be obtained through mining. Pupuk Indonesia requires it to produce fertilizer. This collaboration with Somiphos ensures a sustainable supply of this raw material, secures domestic fertilizer needs, and demonstrates its commitment to sustainable national food self-sufficiency," Pupuk Indonesia President Director Rahmad Pribadi said.

Under this deal, Pupuk Indonesia will receive up to 1 million tons of rock phosphate per year for domestic needs. Pupuk Indonesia has also opened up opportunities for collaboration with several Algerian companies to develop integrated phosphate-based fertilizer industry projects.

This agreement aims to build a partnership to develop cooperation opportunities in the phosphate sector, specifically the possibility of supplying Algerian phosphate to Pupuk Indonesia. It also explores joint investment opportunities in phosphate exploitation and processing activities in Algeria, as well as the development of projects related to phosphate derivative products.

"Pupuk Indonesia welcomes the collaboration with Somiphos and the Sonarem Group. This collaboration can ensure sustainable food self-sufficiency by meeting the needs of fertilizer raw materials, in this case phosphate," he said.

Deputy Minister of Agriculture Sudaryono said that this aligned with what President Prabowo Subianto had wanted: to strengthen the fertilizer raw material supply chain and lower fertilizer prices for the welfare of Indonesian farmers. Reliance on imported raw materials has affected fertilizer costs. A long-term partnership is considered crucial to strengthening national food security.

"President Prabowo Subianto has provided very clear direction that the government must be present to ensure fertilizer is available, affordable, and timely for farmers. This phosphate cooperation with Algeria is a concrete step to strengthen the upstream national fertilizer industry to reduce production costs and provide lower fertilizer prices for the people," Sudaryono said.

"The results of this collaboration are expected to create added value, increase the efficiency of the national fertilizer industry, and support the government's program to achieve food self-sufficiency," he added.

Likewise, Algerian Minister of State, Energy and Mining, Mohamed Arkab said that his country aimed to strengthen economic partnerships in the strategic mining sector.

Pupuk Indonesia is also exploring collaboration with Sonatrach, an Algerian state-owned oil and gas company, to create a fertilizer industry ecosystem in Algeria.

"With the availability and affordable price of gas in Algeria, we can collaborate to develop an integrated fertilizer industry ecosystem in Algeria, whose products can be used to meet national needs," added Rahmad Pribadi.

Somiphos is a state-owned Algerian phosphate mining company engaged in the exploration, mining, processing, and marketing of rock phosphate.

Somiphos operates in the Tebessa region of eastern Algeria and is known as a major producer of phosphate from the Djebel Onk mining area, one of Algeria's largest phosphate deposits. The company was founded in January 2005 as part of the reorganization of the national phosphate industry and is part of the Sonarem Group ecosystem.