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Ministry of Industry focuses on revitalizing the fertilizer industry to support national food security

28 June 2021 11:17

JAKARTA - The fertilizer industry is one of the strategic sectors that can spur the national economy. This is because the fertilizer industry plays an important role in encouraging increased production in the agricultural sector which supports the national food security program in the future.

"In order to increase productivity and competitiveness, we have a revitalization program for the fertilizer industry which includes replacing old and inefficient factories," said Director General of Chemical, Pharmaceutical and Textile Industry (IKFT) of the Ministry of Industry, Muhammad Khayam in Jakarta, Sunday (28/6).

Regarding the implementation of the fertilizer industry revitalization program, since 2015 there have been several new fertilizer factories or replacement plants that have been built. For example, the Kaltim-5 factory at PT Pupuk Kalimantan Timur with a urea fertilizer production capacity of 1.15 million tons in 2015 was to replace the Kaltim-1 factory with a urea fertilizer production capacity of around 700 thousand tons per year. Currently, PKT's total production capacity for urea fertilizer reaches 2.4 million tons per year, followed by ammonia production at 2.7 million tons per year, and NPK fertilizer at around 300 thousand tons per year.

The Director of the Upstream Chemical Industry at the Ministry of Industry, Fridy Juwono, stated that the successful implementation of the fertilizer industry revitalization program cannot be separated from the support for providing sufficient raw materials and implementing a roadmap for long-term fertilizer needs. "The existence of a new factory will help reduce the consumption of natural gas per tonne of ammonia and urea significantly," he said. According to Fridy, with the facility to reduce certain natural gas prices, the fertilizer subsidy burden has decreased by IDR 1.5 trillion as well as increased tax revenues. (LM)

肥料産業は、国民経済に拍車をかけることができる戦略的セクターの1つです。 これは、肥料産業が、将来の国家食料安全保障プログラムを支援する農業部門での増産を促進する上で重要な役割を果たしているためです。

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