The foundation stone for the construction of the National Strategic Project (PSN) for the Fertilizer Industrial Area in Fakfak Regency, West Papua, was laid by President Jokowi, last Thursday (Nov 23).
"The existence of this fertilizer industrial area will have an impact on economic growth in Eastern Indonesia. This fertilizer industrial area will also be able to make a positive contribution by encouraging the growth of businesses supporting the surrounding area amounting to Rp650 billion per year," President Director of Pupuk Indonesia, Rahmad Pribadi, noted in Jakarta, Saturday.
Pribadi explained that the fertilizer industrial area would also provide myriad benefits for the people of Eastern Indonesia, the government, and the state. Apart from supporting the investment climate, the project will employ a workforce of 10 thousand people during the construction period and 400 people during operation.
The potential contribution to domestic economic growth through the use of the Domestic Component Level (TKDN) in the project reaches around Rp10 trillion. Meanwhile, the contribution to regional income is estimated at Rp15 billion per year.
Construction of the fertilizer industrial area itself is the first in Indonesia in the last 40 years.
Construction of the first fertilizer industrial area in Indonesia began in Palembang in 1959, then in Gresik in 1972, Cikampek in 1975, and Bontang in 1977. Meanwhile, Indonesia last built a fertilizer industry in 1982 in Aceh.
This means that the project is a new fertilizer industrial area built in the country after four decades.
In this area, a factory will be built with a urea fertilizer production capacity of 1,150,000 tons per year and ammonia of 825 thousand tons per year. The urea fertilizer factory is targeted to start production in early 2028 and will be run by Pupuk Kalimantan Timur, which is one of the holding members of Pupuk Indonesia.
"Pupuk Indonesia will continue to support the government in its national food security program, one of which is by increasing fertilizer production capacity through the Fertilizer Industrial Zone Project in Fakfak. Its existence will supply fertilizer needs in Indonesia, especially for the agricultural sector," Pribadi stated.
With this additional capacity, Pribadi said, the existence of the new fertilizer industrial area in West Papua will strengthen Pupuk Indonesia's position as the largest fertilizer provider company in Asia Pacific, the Middle East, and North Africa.
The factory will be built using an ESG approach, for which the use of new technology will be lower carbon and environmentally friendly.
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Translator: Ade Irma Junida, Cindy Frishanti Octavia
Editor: Arie Novarina
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