Summary:

On 20 January 2026, Algeria signed a major phosphate export agreement with Indonesia, highlighting a strategic partnership in developing the Tébessa phosphate deposit before it begins production.  

The agreement involves Algerian companies Somiphos and Sonarem, alongside the Indonesian state-owned fertilizer producer Pupuk Indonesia, which will secure 1 million tonnes of natural phosphate per year.  

The deal also includes plans for an integrated phosphate-based fertilizer project and joint investments in extraction, processing, and derivative products. Algerian authorities confirmed that the Bled El Hadba–Oued Kebrit–Port of Annaba railway line will be completed by the end of 2026 to support transport, with operations expected to start in early 2027 and production capacity projected to rise from 2.5 to 10 million tons per year. 

Outlook: 

With this latest export agreement with Indonesia, Algeria will accelerate its entry into Asian markets for phosphate exports. The diversification of markets and closer engagement with Asia reflect a broader foreign policy aimed at expanding partnerships with key regional players, particularly China, as seen in Beijing’s involvement in major Algerian projects.  

The agreement with Indonesia follows the same logic and signals a significant step toward strengthening Algeria’s regional position in phosphate production. Rising competition from neighboring producers, especially Morocco, increases the need for pragmatic and effective strategies from Algiers to maintain influence and secure long-term market access. 

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