The Government Has Prepared A Budget Of IDR 50 Trillion To Build 7 Fertilizer Factories

JAKARTA - The government plans to build seven new fertilizer factories with a budget of up to IDR 50 trillion. The construction of the first five factories is targeted for completion by 2029.

Minister of Agriculture (Mentan) Andi Amran Sulaiman said the construction of this new factory was to increase the efficiency and effectiveness of national fertilizer products.

Later, said Amran, the first five new fertilizer factories are targeted to be completed no later than 2029. He believes that with the operation of the new factory, production costs can be reduced and dependence on imported raw materials can be significantly reduced.

"We can set up a new factory because of the effective efficiency. Our draft is to build seven new factories, five to 10 years. The commissioner (President Commissioner of PT Pupuk Indonesia Sudaryono) said five units could be inaugurated before 2029. This is an extraordinary revolution," Amran said in a press conference quoted from the Ministry of Agriculture's YouTube, Wednesday, October 22.

Furthermore, Amran said the construction of the seven new fertilizer factories cost up to tens of trillions.

"The budget is approximately IDR 50 trillion," he said.

Amran also said that the construction of this new factory is much more profitable because the use of gas raw materials is only 22 to 23 percent. Meanwhile, if it revitalizes old factories whose use of gas raw materials reaches 43 percent.

"This is almost half. We can set up a new factory because of the effective efficiency earlier," he explained.

In addition to building factories, Amran said that his party has also fixed fertilizer management so that the government can save IDR 10 trillion.

With the improvement of this governance, continued Amran, the cost of fertilizer production could decrease by 26 percent.

"As well as increasing PT Pupuk Indonesia (Persero)'s profit of up to IDR 2.5 trillion in 2026, with a projected total profit of IDR 7.5 trillion. This revitalization also has the potential to increase the volume of subsidized fertilizers by 700,000 tons gradually until 2029," he said.