PT PUPUK INDONESIA’S UREA FERTILIZER EXPORT STRATEGY TO INDIA (2020–2024): A COMMERCIAL LIBERALISM PERSPECTIVE

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.