Pupuk Indonesia Tender: 175,000t DAP Buy – July-Dec Shipments

State-owned Indonesian fertilizer company Pupuk Indonesia has launched a tender for 175,000 tonnes of diammonium phosphate (DAP) fertilizer, seeking supplies for delivery between July and December 2026. The purchase is being made on behalf of four of its subsidiaries: Petrokimia Gresik, Pupuk Kalimantan Timur, Pupuk Sriwidjaja Palembang, and Pupuk Kujang.

The tender, which closes on March 27, will award contracts based on offers submitted as a discount to a formula price linked to Argus Phosphates’ DAP cfr Southeast Asia price assessment. The auction date will be announced following the close of submissions.

Petrokimia Gresik (PKG) is the largest single purchaser in the tender, seeking 70,000 tonnes of DAP for delivery to the port of Gresik. The company plans to receive the fertilizer in four shipments, each ranging from 10,000 to 20,000 tonnes, between July, and November.

Pupuk Kalimantan Timur (PKT) is procuring 45,000 tonnes of DAP for delivery to Bontang port, divided into three lots of 15,000 tonnes each, also scheduled for shipment from July to November.

Pupuk Sriwidjaja Palembang (PSP) requires 40,000 tonnes of DAP for delivery to Boom Baru port. Deliveries will be split into eight shipments, each between 5,000 and 10,000 tonnes, spanning July to December.

Pupuk Kujang (PKC) is seeking 20,000 tonnes of DAP, with the option of delivery to either Tanjung Priok or Cigading port. The company intends to receive the fertilizer in two 10,000-tonne shipments between September and November 2026.

This procurement follows a similar, smaller tender issued by Pupuk Indonesia in November 2025, for 25,000 tonnes of DAP on behalf of Pupuk Kujang. That tender, like the current one, utilized a discount-to-formula pricing mechanism.

Global DAP prices have risen sharply in recent months, driven by instability in global supply chains, increased freight costs, and rising raw material expenses following the outbreak of conflict in the Middle East. On March 19, DAP prices in Southeast Asia were assessed at $800–850 per tonne cfr, a significant increase from $730–750 per tonne cfr on February 26, prior to the escalation of tensions. Offers submitted in response to the current tender are anticipated to reflect these elevated price levels.

According to a recent report, Pupuk Indonesia has reported increased fertilizer sales and production, though specific figures were not detailed in the announcement.