From Fields to Rivers: The Fertilizer Dilemma in Indonesia’s Agricultural Economy

Agriculture, a cornerstone of Indonesia’s economy, is deeply tied to fertilizer use, soil health, and water quality, where more than 29 percent of workers work in the sector, and the industry plays a major role in GDP with the main crops being rice, palm oil and vegetables (OECD, 2023). The application of fertilizer is common, and the majority of the market is covered with nitrogen-based fertilizers such as urea, ammonium nitrate, and compound NPK (Nitrogen, Phosphorus, Potassium). The Indonesian government has been subsidizing fertilizers—particularly urea and NPK—making them more affordable for smallholder farmers; in 2023 alone, 7.85 million tons were allocated, with 4.64 million tons of urea and 3.21 million tons of NPK, contributing to regional over-utilization in some areas, (Indonesia Agricultural Policy Institute, 2023).

The soils of Indonesia are diverse and are influenced by the volcanic nature of the country and coastal diversity. Upland areas are composed of volcanic soils with high organic matter and nutrients and lowland paddy fields are mainly composed of clay soils, particularly in West Java. The Sandy soils are common in regions near the seashores such as portions of Babelan where agriculture interferes with urban development (MDPI, 2023). These types of soils vary in their retention capacity or their leaching capacity of various nutrients especially in nitrates which have consequences in the productivity of crops as well as the health of the environment.

Water pollution associated with fertilizer runoff is one of the most urgent local issues. An example of a river frequently mentioned as one of the most polluted rivers in the world is the Citarum River in West Java, which is highly polluted with nitrogen and phosphorus because of the discharge of agriculture and industry (The Guardian, 2023). There have been records of fish kills and algae blooms, and nitrate contamination has been involved in eutrophication and depletion of oxygen. In the Citarum River basin, 35.5 tonnes of human waste and 65 tonnes of livestock waste are dumped daily, contributing to nutrient overload. Moreover, faecal coliform bacteria levels have been recorded at 5,000 times the safe exposure limit, and lead concentrations are up to 1,000 times the U.S. EPA standard for drinking water, underscoring the severity of contamination (Environment Care Consortium, 2022).

Indonesia, in turn, has started to embrace sustainable agriculture as part of the partnerships such as Partnership for Indonesia Sustainable Agriculture (PISAgro) that promote precision fertilization and organic substitutes (PISAgro, 2023). These efforts align with the UN Sustainable Development Goals, particularly SDG 2 (Zero Hunger), SDG 6 (Clean Water and Sanitation), and SDG 15 (Life on Land). SDG 2 focuses on the importance of fertilizers in enhancing food security (UN SDG, 2023), whereas SDG 6 draws attention to the necessity to avoid the pollution of water masses with nitrates (UNEP, 2023). SDG 15 demands that land use and soil conservation should be sustainable in order to conserve biodiversity and ecosystem services (Global Goals, 2023).

The challenge of nitrate pollution is neither new nor unique to Indonesia; it is a global concern. The consumption of fertilizers has been increasing since the Green Revolution of the 1960s particularly in such countries as China, India, and the United States (Springer, 2014). ​​As of 2022, China consumed approximately 44.7 million metric tons, India 29.4 million metric tons, and the United States 20.4 million metric tons of fertilizers annually, making them the top three consumers globally (Statista, 2024). Although this has boosted food production, it has also caused a lot of implications in the environment. An example of how an overload of nitrogen leads to a huge eutrophication and damages marine life and fisheries is the so-called Dead Zone in the Gulf of Mexico, which in 2023 spanned approximately 3,058 square miles—nearly the size of Yellowstone National Park—due to fertilizer discharge into the Mississippi River Basin (Ocean Info, 2023). The same has been witnessed in Lake Erie and the Baltic Sea where algae blooms and low oxygen levels (hypoxia) have caused aquatic ecosystem disruptions (Lake Erie Foundation, 2023; HELCOM, 2019).

Beyond surface water, nitrate leaching into groundwater poses serious health risks. Nitrate pollution has even surpassed the safe drinking water limits in most areas such as in some parts of Europe, leading to regulation measures such as the EU Nitrate Directive (Springer, 2025). Furthermore, a by-product of fertilizer breakdown, nitrous oxide (N2O), is a powerful greenhouse gas, almost 300 times more effective than CO2 and causes climate change (MIT Climate Portal, 2023).

SOURCES:
Organisation for Economic Co-operation and Development. (2023). Agricultural policy monitoring and evaluation 2023: Indonesia. https://www.oecd.org/en/publications/agricultural-policy-monitoring-and-evaluation-2023_b14ded74-en/full-report

VOI Editorial Team. (2023, November 13). Realization of subsidized fertilizer distribution has reached 5.30 million tons. VOI. https://voi.id/en/economy/239140

Purnomo, H. (2023, November 11). Realisasi pupuk subsidi capai 5,30 juta per November 2023. IDX Channel. https://www.idxchannel.com/economics/realisasi-pupuk-subsidi-capai-530-juta-per-november-2023

Agriculture Institute. (2023). Indonesia’s agricultural policies: Balancing growth and sustainability. https://agriculture.institute/agricultural-policy/indonesia-agricultural-policies-growth-sustainability

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Vidal, J. (2023, March 22). Citarum River pollution: Indonesia’s toxic waterway. The Guardian. https://www.theguardian.com/environment/2023/mar/22/citarum-river-pollution-indonesia

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