State firm can allocate 9.1m tons of fertilizer

State firm can allocate 9.1m tons of fertilizer

A worker carried fertilizer at a warehouse of PT Pupuk Kujang Jatibarang, Indramayu, West Java. (ANTARA PHOTO/Dedhez Anggara/pras./sh)

In term of stock and production capability, we can meet (the demand)
Jakarta (ANTARA) - State-owned fertilizer company PT Pupuk Indonesia (Persero) has expressed its readiness to allocate 9.1 million tons of subsidized fertilizer as proposed by the Agriculture Ministry, an increase from the previous 7.9 million tons, for 2020. "In terms of stock and production capability, we can meet (the demand)," head of Corporate Communication of PT Pupuk Indonesia (Persero) Wijaya Laksana told ANTARA here Tuesday.

Previously, the Directorate General of Infrastructure of the Agriculture Ministry has proposed an increase of 1.2 million tons of subsidized fertilizer allocation, following the latest data of the National Land Agency that showed an increased area of paddy field that reached 7.46 million hectares.

The company, which is tasked to distribute subsidized fertilizer, has the production capability of 12.65 million tons of fertilizer in 2020.

As of Tuesday, the company's stock for urea has amounted at 1.1 million tons; NPK with 524,083 tons; SP with 36 128,526 tons; ZA with 210,584 tons, and Organic fertilizer with 66,775 tons. All stocks are available in Line I to IV of the company.

"The current fertilizer stock is adequate to meet the demand. The amount is four times that of the minimum stock requirement," Laksana said.

The latest release from BPN showed that an increase of 7.46 million hectares in paddy field area has prompted the Agriculture Ministry to increase its allocation of subsidized fertilizer to 9.1 million tons worth some Rp28.9 trillion.

"We propose an increase of 1.2 million tons worth Rp2.6 trillion," the Director General of Infrastructure of the Agriculture Ministry Sarwo Edhy said recently.

The previous allocation of subsidized fertilizer for 2020 at 7.94 million tons worth some Rp26.3 trillion was based on BPN's data in 2018 on paddy field area that has recorded at 7.1 million hectares. 

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