Bontang, E Kalimantan (ANTARA) - Agriculture Minister Andi Amran Sulaiman stated that the fertilizer industry revitalization until 2029 can reduce the prices of subsidized fertilizer by 20 percent and increase productivity by 700,000 tons.

"The production can increase by 700,000 tons without increasing the burden on the state budget," he said at the inauguration of the revamped Ammonia Plant 2 of state-owned fertilizer producer Pupuk Indonesia in Bontang, East Kalimantan, on Thursday.

Under the fertilizer industry revitalization initiative, he stated that the government aims to inaugurate seven revitalized fertilizer plants over the next few years as part of a strategic policy to strengthen the national fertilizer industry.

According to Sulaiman, the revitalization policy follows the directives of President Prabowo Subianto and is being closely monitored alongside the House of Representatives (DPR), specifically Commission IV, to ensure fertilizer availability for farmers.

The minister also noted that production efficiency increased by approximately 10 percent following the revamp of the Ammonia Plant 2, which will directly contribute to increasing national agricultural output.

He mentioned that the fertilizer sector has already generated an additional profit of Rp132 trillion (around US$7.87 billion) in 2025. Nevertheless, he highlighted the need to ensure the timely distribution of fertilizer, as any delays significantly affect production.

President Director of Pupuk Indonesia, Rahmad Pribadi, explained that the Ammonia Plant 2 was the oldest facility, originally inaugurated on October 29, 1984, by the Second President Soeharto.

From its inception, the plant was built with a grand vision of industrial self-reliance and food security. He added that this vision continues today through the plant's revamp.

The revamp of Pupuk Indonesia's Ammonia Plant 2 is expected to be able to reduce operational costs by up to Rp200 billion and cut emissions by 110,000 tons, making it more environmentally friendly.

Pribadi emphasized that the plant's revamp is part of Pupuk Indonesia's seven commitments to the government, with one plant already inaugurated and three plants currently under construction.



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Translator: Ahmad Muzdaffar, Raka Adji
Editor: Azis Kurmala
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