The First Indonesian NPK Nitrate Fertilizer Plant Officially Built, Target Completed 2027

KARAWANG - The first NPK Nitrate fertilizer plant in Indonesia has been officially built. This project is a new milestone in strengthening the national fertilizer industry as well as efforts to reduce import dependence, and the construction is targeted to be completed in 2027.

Pupuk Indonesia President Director Rahmad Pribadi said the construction of this NPK Nitrate plant is a historic moment for the national agriculture and fertilizer industry.

"This is an important milestone, because what we are building will be a new historical foundation for the development of the fertilizer industry and agriculture as a whole," he said in his speech at the groundbreaking ceremony for the NPK Nitrate plant, in Karawang, West Java, Tuesday, December 23.

Until now, said Rahmad, the national demand for NPK Nitrate is still met by imports with a volume of around 450,000 tons per year. The presence of this new factory is expected to be the first step in replacing imports.

"Today we are building a capacity of 100,000 tons at Pupuk Kujang. Slowly we will try to dominate our own house so that most of the NPK Nitrates circulating in Indonesia can come from the production of Pupuk Indonesia Group," he explained.

With the current market price of NPK Nitrate in the range of IDR 13 million to IDR 15 million per ton, the potential revenue from the plant is considered quite large.

"If the price of NPK Nitrate today is Rp. 15 million per ton, it means that it is multiplied by 100,000 tons, the revenue can be Rp. 1.5 trillion," he said.

However, Rahmad said Pupuk Indonesia is committed not only to pursuing profits, but also to ensuring the affordability of fertilizer for farmers, especially the horticulture sector.

"With the principle of caution and our commitment to agriculture, in this feasibility study we have lowered the selling price of NPK Nitrate. Hopefully our presence will not only replace imports with national production, but also reduce the cost of agricultural production," he said.

Rahmad said that the first NPK Nitrate plant in Indonesia, which cost an investment of almost Rp600 billion, is targeted to be completed in 2027.

Not only emphasizing the importance of the timeliness of the construction of the factory, Rahmad also highlighted the quality, budget control, and aspects of occupational safety that need to be met.

"Please keep the project on schedule. The target is 21 months. Quality must also be maintained because this is the first Indonesian production of NPK Nitrate, so that it does not lose to imported products. The budget must be maintained, and what is equally important is safety," he said.