Indonesia, Laos explore fertilizer investment in Jakarta talks

hartono · May 5, 2026

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Indonesian Vice President Gibran Rakabuming Raka (right) and Lao Deputy Prime Minister Thongsavanh Phomvihane (left) discuss bilateral relations at the Jakarta Vice Presidential Palace on Tuesday (May 5, 2026). ANTARA FOTO/Indrianto Eko

Jakarta (ANTARA) - Indonesian Vice President Gibran Rakabuming Raka met Lao Deputy Prime Minister and Foreign Minister Thongsavanh Phomvihane to discuss strengthening economic cooperation, highlighting plans to build an Indonesian fertilizer plant in Laos.

Deputy Foreign Minister Anis Matta, who accompanied Gibran at the Vice Presidential Palace in Jakarta on Tuesday, explained that state-run fertilizer producer PT Pupuk Indonesia plans to expand to Laos amid Jakarta’s significant imports of potassium, a key feedstock, from the country.

“Since we are importing potassium from Laos for our fertilizer needs at home, the government intends to invest in Laos through PT Pupuk to foster cooperation in this industry,” he remarked.

He added that bilateral trade between Indonesia and Laos currently stands at around US$83.3 million annually, with Jakarta recording a deficit of US$57 million—figures he noted remain relatively low compared to Indonesia's trade with other Southeast Asian partners.

On the same occasion, Indonesia’s State-Owned Enterprise Regulatory Agency (BP BUMN) Deputy Head Aminuddin Ma’ruf confirmed that the government would assign the investment plan to PT Pupuk Indonesia, noting that potassium imports from Laos account for nearly the entire bilateral trade.

He noted that the vice president had ordered BP BUMN and sovereign wealth fund Danantara to explore fertilizer cooperation opportunities with Laos as part of efforts to empower farmers to contribute to the food self-sufficiency agenda promoted by President Prabowo Subianto.

Ma’ruf noted that Indonesia’s food security drive is not only focused domestically but also aims to contribute to broader regional resilience in Southeast Asia.

VP Gibran, alongside Matta and Ma’ruf, received Deputy PM Phomvihane at his palace to step up bilateral ties ahead of the 70-year mark of diplomatic relations next year.

The Laotian delegation included Ambassador to Indonesia Khamfeuang Phanthaxay, Director General of the Asia-Pacific and Africa Department Bounthanongsack Chanthalath, and Director General of the ASEAN Department Sengdavanh Vongsay.