Abstract:
The urea fertilizer trade between Indonesia and India demonstrated significant
dynamics during the 202032024 period. India, as one of the world’s largest urea
importers, continued to rely on supply from Indonesia, while PT Pupuk Indonesia
sought to maintain its competitiveness amidst global market fluctuations, India’s
increasing domestic production, and Indonesia’s export regulations. This study
aims to analyze the implementation of PT Pupuk Indonesia’s urea export strategy
to India within the context of bilateral trade relations between the two countries,
using the theoretical framework of Commercial Liberalism. This research
employs a descriptive qualitative method with a case study approach. Data were
collected through the analysis of corporate annual reports, trade policy
documents, export data, and interviews with PT Pupuk Indonesia officials. The
analysis focuses on three main dimensions of Commercial Liberalism theory: the
role of non-governmental actors (state-owned enterprises as exporters),
government preferences in fertilizer trade policies, and interdependence within
the international system. The findings reveal that PT Pupuk Indonesia
implemented its export strategy through international tender mechanisms, spot
sales, and also customer sector diversification. Although constraints exist in the
form of domestic supply priorities (PSO) and export restrictions imposed by the
Indonesian government, interdependence with India as a major market continues
to create strategic opportunities. This study concludes that although government
preferences do not fully support fertilizer trade liberalization, PT Pupuk
Indonesia’s export strategy persists through the role of non-governmental actors
and strong interdependence with India.
