"I welcome the construction of Plant 5 and the phosphoric acid factory in Gresik as they will provide benefits in terms of increasing food security," the president stated while inaugurating the Plant 5 of PT Pupuk Kaltim and the phosphoric acid factory II of PT Petrokimia Gresik in Bontang, East Kalimantan, on Thursday.
President Jokowi noted that the demand for fertilizers will increase in the future, and the presence of Plant 5 of PT Pupuk Kaltim is expected to meet this need and to improve food security in the country.
"Sufficient supply of fertilizers will help the country to meet its food security targets, and they can also be exported," Jokowi said, adding that the state-owned PT Pupuk Kaltim company is expected to continue to make investments to encourage food resilience and self-sufficiency.
Last year, the demand for fertilizers was recorded at 6.7 million tons, and it is expected to continue to increase due to extensive farming, especially in the central and eastern regions of Indonesia that will need additional supply of fertilizers.
In the meantime, PT Pupuk Kaltim President Director Aas Asikin Idat noted that Plant 5 is the first realization of the fertilizer industrys revitalization program as stated in Presidential Instruction No. 2 of 2010.
The presidential instruction is part of the efforts to save raw materials and energy and to use the latest environment-friendly technology.
The Plant 5 is built on an 8.4-hectare plot of land, with a capacity to produce 825 thousand tons of ammonia per year and 1.15 million tons of urea per year, with an investment of US$576 million.(*)