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Pupuk Indonesia vows massive investment in fertilizer production
Rahmad Pribadi, president director of PT Pupuk Indonesia, said the state-owned fertilizer producer will invest Rp 116 trillion (US$7billion) to boost fertilizer production.
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Geared toward growth: State-owned fertilizer holding company Pupuk Indonesia marketing director Achmad Tossin Sutawikara (left) examines a tag with Graha Sarana Gresik president director Ferril Raymond Hattu during the inspection of subsidized fertilizers in 2018, in a warehouse of state fertilizer company Petrokimia Gresik in Pakisaji, Malang, East Java. (Antara/Ari Bowo Sucipto)
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tate-owned fertilizer producer PT Pupuk Indonesia has announced massive capital expenditures (capex) to increase its output and make Indonesia less dependent on imports.
Pupuk Indonesia president director Rahmad Pribadi said the company would invest Rp 116 trillion (US$7 billion) to increase its production capacity.
A chunk of the funds is earmarked for a fertilizer megaproject in Fakfak, West Papua, namely the Fakfak Fertilizer Integrated Industrial Area, one of the national strategic projects inaugurated in a groundbreaking ceremony by then-president Joko “Jokowi” Widodo on Nov. 23, 2023.
Rahmad explained that the move was in line with government efforts to simplify fertilizer distribution regulations and provide incentives for the industry.
He said the investment was necessary to ensure the supply of affordable fertilizer for farmers and help the country achieve a surplus in rice production.
“Pupuk Indonesia is ready to collaborate with all parties, specifically with the National Nutrition Agency [and] with entrepreneurs, to ensure the availability and affordability of fertilizer for farmers and [...] achieve national food security,” Rahmad said during the CNBC Indonesia Food Summit broadcast live on Wednesday.
He went on to say that affordable fertilizer was key to ensuring reliable distribution of subsidized fertilizer, which Pupuk Indonesia aimed to achieve through a network of kiosks connected to its subsidized fertilizer integration app, i-Pubers.
