Indonesia Complex Fertilizer Demand,Consumption,Production,Market,Granulated NPK Consumption : Ken Research

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• Indonesia Complex Fertilizer Market Outlook
  Report Ken Research

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What is the scenario of asia complex fertilizer
market?

• Asian countries are behind US and European
  countries in terms of achieving agricultural crop
  yield. The focus on improving crop yields has
  driven the demand for complex fertilizers in the
  Asian subcontinent over the past decade. Asia
  complex fertilizer market registered moderate
  growth during 2012-2017, growing at a CAGR of ,
  to register revenues worth USD billion in 2017
  as compared to USD billion in 2012. Moderate
  growth was due to decline in consumption of
  complex fertilizers in certain key territories
  and slump in price of complex fertilizers, driven
  by decline in cost of raw materials in
  international markets. Overall, complex
  fertilizer production in Asia grew at a CAGR of
  during 2012-2017, whereas consumption of
  complex fertilizers grew at a CAGR of during
  the same period.
• Indonesia was the largest consumer and producer
  of complex fertilizers in Asia and accounted for
  about of the market in 2017.
• India ranked second and comprised for of the
  market share in 2017. Vietnam, Indonesia and
  Thailand were other major countries utilizing
  complex fertilizers in Asia and accounted for ,
  and market share respectively in 2017. All
  other Asian countries together comprised for
  remaining of the market.
• NPK 16-16-8 was the most widely used complex
  fertilizer in Asia and accounted for market
  share in overall complex fertilizer market in
  2017. NPK 20-20-15 was the next popularly used
  fertilizer grade and comprised for market
  share in 2017. NPK 15-15-15 and NPK 20-20-0 were
  other popularly used complex fertilizers which
  comprised for and market share respectively
  in 2017. All other grades/formulas of complex
  fertilizers together comprised for about of
  the market share in 2017.

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How has indonesia complex fertilizer market
performed?

• Indonesia complex fertilizer market is highly
  regulated and state-owned companies have a
  monopoly in this sector. Farmers are supplied
  Indonesia NPK Fertilizer Demand at highly
  subsidized rate. Although only NPK 15-15-15 is
  subsidized by the government, the grade accounted
  for about of overall NPK fertilizer
  consumption in the country in 2017. The
  government has announced in its recent plans to
  redirect government funds for fuel subsidies to
  improve agricultural production by purchasing
  seeds and fertilizers.
• Indonesia lacks mineral resources of phosphate
  rock and potash to produce its NPK requirements
  locally. However, local companies are making
  efforts to lessen the countries dependence on
  importing finished NPKs. Petrokimia Gresiks
  joint venture with Jordan Phosphates Mines
  Company (JPMC) has led to the establishment of
  Petro Jordan Abadi (PJA) phosphoric acid plant in
  Java, which became operational in early 2014.
• Indonesia has been increasingly focusing on
  utilization of complex fertilizers in the recent
  past. Consumption of NPKs has inclined from
  million MT in 2012 to million MT in 2017. This
  represents growth at a CAGR of during the
  period 2012-2017.

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• The market for complex fertilizers grew from USD
  million in 2012 to USD million in 2017,
  representing growth at a CAGR of during the
  period 2012-2017. The market witnessed a slump
  during 2015-2016 due to fall in prices of raw
  materials used for production of complex
  fertilizers.
• Indonesia imported about thousand MT of NPK
  fertilizers during 2016, majorly from Malaysia
  and Norway. Imports declined in 2016 by as much
  as as compared to 2015. Oversupply of NPK
  fertilizers in the domestic market coupled with
  decrease in price of Urea, DAP and NPKs resulted
  in decline in imports of the same in 2016.
  Overall, imports grew at a CAGR of during
  2012-2016 from thousand MT in 2012 to
  thousand MT in 2016.
• Malaysia and Norway were the two biggest
  exporters of NPK fertilizers to Indonesia as of
  2016, contributing about and of the overall
  NPK imports of the country (in terms of volume).
  Belgium and Russia were other important import
  destinations amongst several other countries in
  2016 and resulted in and of the overall NPK
  fertilizer imports.

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Which segments have outperformed?

• NPK 15-15-15 was by far the most widely used
  complex fertilizer in Indonesia since this NPK
  grade is subsidized by Indonesian government. The
  usage of this particular NPK fertilizer has grown
  at the fastest pace during the last 5 years. NPK
  12-10-20, NPK 15-7-20, NPK 20-10-20, NPK
  15-10-28, NPK 13-6-27 and NPK 16-16-16 were other
  popularly used complex fertilizer grades in
  Indonesia.
• Indonesia largely produced and utilized high
  quality granulated or fused complex fertilizers
  and was largely dominated by public sector
  companies. The market was strictly regulated by
  the government and entities invested quite
  heavily in setting up manufacturing facilities
  and producing high quality complex fertilizers.
• Consumption of granulated fertilizers stood at
  Million MT in 2017, comprising for market
  share of overall complex fertilizer consumption
  in the country. On the other hand, consumption of
  blended complex fertilizers stood at Million MT
  in 2017 which accounted for market share of the
  overall complex fertilizer market in Indonesia.

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How is competition structured?

• Indonesian complex fertilizer market is highly
  competitive and very largely dominated by public
  sector. The market comprises of very few domestic
  manufacturers, with state-owned companies almost
  having a monopoly in this sector. The countrys
  domestic production has been sufficient to meet
  the consumption demand in the last few years.
  Moreover, most NPK manufacturers utilized
  advanced technology and produced high quality
  granulated/fused complex fertilizers. The market
  is highly regulated and subsidized, with about
  90 of complex fertilizer consumption being
  subsidized.
• Indonesian complex fertilizer market is very
  concentrated with top 4 players together
  comprising for of the market share, in terms
  of revenue. Petrokimia Gresik was the market
  leader by far, in terms of revenue, by accounting
  for market share in 2017. Pupuk Kalimantan
  Timur emerged as the second largest player in
  this space and comprised for market share.
  Pupuk Kujang and Pupuk Sriwidjaya Palembang
  accounted for and market share,
  respectively. Several other players including
  Yara International, Wilmar International and
  Malaysian Agrifert-Kuoks comprised for the
  remaining market share in 2017.

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What are the growth prospects of indonesia
complex fertilizer market?

• Indonesia has a very balanced demand and supply
  equilibrium, with high level of regulation and
  participation from the government. All the
  largest complex fertilizer manufacturing
  companies in Indonesia are part of Indonesia
  Holding Company (public / state-owned enterprise)
  and over of the domestic consumption of
  complex fertilizers were subsidized by the
  government as of December 2017. Since the country
  has been steadily increasing its utilization of
  complex fertilizers over Urea and other mineral
  fertilizers and the government has been pushing
  local companies to develop more complex
  fertilizer plants, complex fertilizer
  manufacturers are expected to keep investing and
  expanding their manufacturing capabilities at
  least in the near future. Consumption of complex
  fertilizers in Indonesia is expected to grow at a
  CAGR of during the period 2017-2022. Ken
  Research estimates the consumption of complex
  fertilizer to grow in the next five years, rising
  from million MT in 2018 to million MT by
  2022. Average selling prices of NPKs are most
  likely to improve 2018 onwards owing to recovery
  in agricultural commodities prices.
• Most manufacturers produced high quality
  granulated/fused complex fertilizers in Indonesia
  since the government provided subsidy on
  high-quality granulated/fused NPK 15-15-15 only.
  Hence, production of complex fertilizers is
  expected to grow at healthy CAGR of during
  2017-2022, inclining from million MT in 2018 to
  million MT by 2022. NPK 15-15-15 was the most
  widely used complex fertilizer in Indonesian
  market, recording fastest growth during the last
  5 years. Going forward, utilization of NPK
  15-15-15 is most likely to remain strong owing to
  balanced nutrient composition and continued
  subsidy provided by the government.

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• For more information on the research report,
  refer to below link
• https//www.kenresearch.com/agriculture-and-animal
  -care/crop-protection/indonesia-complex-fertilizer
  -market/143969-104.html
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