"With the big strategy of SOEs transformation, we have certainly encouraged one of the fertilizer companies, which is Pupuk Kaltim, to be firm in a market that is open to non-subsidized categories," the minister said here on Thursday.
Meanwhile, the other four sub-holdings of PT Pupuk Indonesia will enter the subsidized fertilizer markets, he informed.
"If we look at the map, the non-subsidized fertilizer market continues to grow by 53 percent," Thohir highlighted.
PT Pupuk Kaltim, which was officially established on December 7, 1977 as a subsidiary of PT Pupuk Indonesia, produces and markets urea, NPK fertilizers, and chemicals such as ammonia, he said.
The company is located in Bontang city, East Kalimantan. PT Pupuk Indonesia has a 99.99 percent stake in the company and the remaining 0.01 percent stake is held by the Kesejahteraan Hari Tua Pupuk Kaltim Foundation.
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Earlier, PT Pupuk Kaltim collaborated with Bank Rakyat Indonesia (BRI) to provide finance to distributors for the procurement of non-subsidized fertilizers, Thohir noted.
The funding will serve as alternative financing for supporting distributors and corporate consumers in purchasing non-subsidized fertilizers, he explained.
The financing will ensure the availability and supply of fertilizers for farmers who use Pupuk Kaltim products, he said.
The exclusive cooperation between Pupuk Kaltim and BRI will make it easier for registered distributors to receive this financial service as soon as possible because of the digitalized system owned by both companies, he added.
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Through the cooperation scheme, distributors will get more freedom in developing their business, the minister said.
They will be able to choose payment deadlines based on their convenience and ability, he noted. Moreover, the financing will also help them to maintain their financial cash flow during the current difficult situation, he added.
The financing program for distributors is also an effort by Pupuk Kaltim in strengthening the capabilities of the national fertilizer industry, as well as providing fertilizer supplies for the agricultural and plantation sectors that are a part of the critical sector, amid the pandemic, Thohir said.
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Translator: Aji C, Kenzu T
Editor: Fardah Assegaf
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