Danantara In Talks To Expand Phosphate, Potash Cooperation With Jordan

Jakarta, Indonesia - Indonesia's sovereign wealth fund, Danantara, is at the center of negotiations to significantly deepen industrial cooperation with Jordan in the fertilizer sector. The talks, led by Danantara CEO Rosan Roeslani, followed a meeting between the fund's leadership and Jordan's King Abdullah II, who was in Jakarta for a state visit. The focus is on expanding collaboration in phosphate and exploring new ventures in potash, critical steps to fortify the upstream segment of Indonesia's fertilizer industry and support its agricultural base.

The foundation for this new expansion is an already successful joint venture. For years, PT Petrokimia Gresik has partnered with the Jordan Phosphate Mines Company (JPMC) to operate PT Petro Jordan Abadi (PJA) in Gresik. Rosan Roeslani highlighted that this existing partnership is not only operational but also profitable, having generated approximately $20 million in profit for Indonesia. The goal now is to scale up this model, with discussions covering potential increased investment in phosphate and the prospect of Indonesian investment in potash production within Jordan itself.

Jordan's endowment of natural resources is the key driver of this partnership. The country is a global leader in phosphate, with JPMC controlling the world's fifth-largest reserves and undergoing a major $1.8 billion expansion plan through 2030. Jordan is also a major producer of potash. For Indonesia, which is heavily reliant on imported fertilizer inputs, a strategic equity and production partnership with Jordan offers a path to greater supply security and potential influence over the supply chain.

This commercial initiative dovetails with high-level diplomatic and policy priorities. The discussions were held on the sidelines of King Abdullah II's meeting with President Prabowo Subianto, who has consistently emphasized food and fertilizer security. Furthermore, the Indonesian Agriculture Ministry has advocated for an even broader vision: transforming the bilateral cooperation into a joint company capable of supplying the wider Southeast Asian market.

The engagement with Danantara reflects Jordan's active pursuit of foreign investment. During the same meeting, King Abdullah II presented a separate portfolio of infrastructure projects to Danantara, including a gas pipeline and a toll road with a combined value of $1.3 billion. This indicates that the fertilizer talks are part of a larger, mutually beneficial economic relationship that Jordan is keen to develop with Indonesian investment entities.

For Danantara, which is tasked with strategic investments for national development, the fertilizer sector represents a high-priority area. Ensuring affordable and ample fertilizer supply is directly linked to national food security, rural livelihoods, and political stability. Investing in the raw material source through partnerships with leading producers like JPMC is a strategic method to de-risk a critical supply chain for the Indonesian state.

Next steps involve thorough due diligence. Rosan Roeslani confirmed that Danantara would evaluate the proposals and that a team is scheduled to visit Jordan in December 2025 for deeper discussions and on-ground assessment. This planned visit underscores the seriousness with which both parties are approaching the potential expansion of their industrial partnership.

The proactive role of Danantara in these negotiations highlights the evolving nature of Indonesia's economic statecraft. By leveraging its sovereign wealth fund to secure strategic resources abroad, Indonesia aims to build long-term, equity-based solutions to its agricultural input challenges, marking a sophisticated approach to safeguarding a fundamental pillar of its economy and food security.

Tag: Danantara Investment Jordan Jordan Phosphate Mines Company JPMC Phosphate Potash Cooperation Sovereign Wealth Fund Agribusiness