President Jokowi noted that the demand for fertilizers will increase in the future, and that the presence of Plant 5 of PT Pupuk Kaltim is expected to meet this need and to improve food security in the country.
Jakarta (ANTARA News) - Inaugurated by President Joko Widodo (Jokowi) on Thursday, the fertilizer Plant 5 of PT Pupuk Kaltim in Bontang, East Kalimantan, is said to be the largest in the Asia-Pacific region and will employ 6,477 workers.

The presence of the Plant 5 on an 8.4-hectare plot of land is expected to raise the spirits of the farmers for developing agriculture in the area.

"Once operational, this plant will be the largest fertilizer factory in the Asia-Pacific region," Mayor Adi Dharma, said in Bontang, East Kalimantan.

He noted that the presence of the plant was very exciting because it can absorb more than 6 thousand workers, and help farmers by fulfilling their need for fertilizer.

According to Adi, the new fertilizer plant will help in the economic progress of the city of Bontang, as the operation of the plant will greatly benefit the people in the region.

Speaking during his opening address, President Jokowi highlighted the important role that fertilizer Plant 5 of PT Pupuk Kaltim will play in boosting the nations food self-sufficiency.

"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 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 that the presence of Plant 5 of PT Pupuk Kaltim is expected to meet this need and to improve food security in the country.

"The sufficient supply of fertilizers will help the country 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 Arifin Tasrief 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.

Plant 5 has been built on an 8.4-hectare plot of land, and has the 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.

This considerable production capacity makes the plant the largest ammonia and urea producer in Asia-Pacific region, according to Industry Minister Saleh Husein.

After overseeing the opening preparation of Plant 5 last week, the minister expressed hope that ammonia and urea fertilizer could become the magnet for industry and investment, especially the petrochemical sector in eastern Indonesia.

The plant became operational in January 2015 and the production capacity is aimed to continue increasing.

Besides Plant 5, PT Pupuk Kaltim has five factories, with a total capacity of 2.51 million tons of ammonia and 2.98 million tons of urea per year.

Once Plant-5 becomes fully operational, the total production capacity of urea will be elevated to be 3.4 million tons per year or up by about 15 percent.

From the production capacity of urea, PT Pupuk Kaltim will be able to meet the domestic fertilizer needs of about 40 percent of the national production capacity of urea reaching 8.5 million tons.

Earlier, East Kalimantan Governor Awang Faroek Ishak remarked that the successful development of numerous industries in Bontang and in other areas in East Kalimantan is the result of cooperation and responsibilities of all parties, especially the citizens of the province.

"I ask the entire community of East Kalimantan in general and of Bontgang city in particular to maintain security and order and a conducive situation," the governor noted.

The East Kalimantan Governor also said that President Jokowi should have inaugurated the fertilizer Plant 5 in July, but the President was preoccupied at the time, and so the inauguration had taken place only now.

According to him, Bontang's existence as an industrial city must be maintained, because not many cities in Indonesia are like Bontang.

He said the Presidential Decree No. 1/2010 has created two industrial clusters in East Kalimantan, namely the gas and condensates-based industrial cluster in Bontang, and the chemical-based industrial cluster in Maloy, East Kutai(*)

Reporter: Otniel Tamindael
Editor: Heru Purwanto
Copyright © ANTARA 2015