Pupuk Kaltim Follows Erick Thohir's Directions, Focuses On Non-subsidized Markets To The Asia Pacific Level

JAKARTA - PT Pupuk Kalimantan Timur (Pupuk Kaltim) is ready to follow the direction of the Minister of SOEs Erick Thohir regarding the focus on the non-subsidized fertilizer market.

"We are ready to follow directions from the government regarding the company's focus on working on opportunities in the non-subsidized market," said Pupuk Kaltim President Director Rahmad Pribadi in a written statement quoted from Antara, Monday, October 4

According to Rahmad, Pupuk Kaltim has a very efficient production facility and a large capacity. So in addition to the obligation to fulfill subsidized fertilizers, Pupuk Kaltim is also ready to compete and increase the market share of non-subsidized fertilizers.

"Even not only in the domestic market, we are also targeting an increase in market share in Asia Pacific," he said.

The development and progress in agriculture in Indonesia has increased sharply so that the need for fertilizers is getting higher.

"The non-subsidized fertilizer production of Pupuk Kaltim, especially the Urea Leaf Fruit fertilizer, controls a very large market share in Indonesia. While the NPK Pelangi fertilizer has become the idol of farmers in increasing food and horticulture production as well as plantations," he said.

Until September 21, 2021, for the distribution of domestic non-subsidized fertilizers, Pupuk Kaltim has distributed 800.000 tons of Fruit Leaf Urea or 72 percent of the 1.1 million tons target and 120.000 tons of NPK Pelangi or 60 percent of the 200.000 tons target in 2021.

"With the distribution network and control of the marketing area, non-subsidized fertilizers of Pupuk Kaltim which have excellent quality and are labeled with Indonesian National Standard (SNI), are always available to meet the needs of farmers and increase agricultural production in Indonesia," said Rahmad.

Pupuk Kaltim, which is part of the Pupuk Indonesia Group, is currently the largest producer of Urea in Indonesia and Southeast Asia with a production capacity of 3.43 million tons per year. With this capacity, Pupuk Kaltim is one of the top five largest Urea producers in the Asia Pacific.

In 2020, 72 percent of Pupuk Kaltim's Urea sales volume will target the domestic and export non-subsidized markets, by first ensuring that domestic needs are met.