Receiving Gas Supply From Medco, Owned By The Late Conglomerate Arifin Panigoro, Iskandar Muda Fertilizer Factory Returns To Normal Operations

Fertilizer factory. (Photo: Doc. Antara/Pupuk Iskandar Muda)

JAKARTA - PT Pupuk Iskandar Muda has ensured that the PIM-2 factory will resume operations with gas supplies from Medco, a business entity owned by the late Arifin Panigoro. That way, Pupuk Iskandar can meet the supply of fertilizer in the northern part of Sumatra.

"We reiterate that the PIM-2 factory is not experiencing any gas supply problems. We can assure you that the gas supply from Medco is fine," said PT Pupuk Iskandar Muda President Director Budi Santoso Syarif in a written statement quoted by Antara, Sunday, March 13.

Budi appreciated the steps taken by the Ministry of Energy and Mineral Resources so far to secure gas supply for the operation of the PT PIM factories.

"We are very grateful for the efforts made by the Minister of Energy and Mineral Resources, who is currently working on the arrival of five cargoes destined for the reactivation of PIM-1," said Budi.

The support given by the Minister of Energy and Mineral Resources for the reactivation, said Budi, was very helpful, especially in the midst of the difficult situation due to the conflict in Eastern Europe which caused many countries to experience a gas supply shortage. "Our communication with the Ministry of Energy and Mineral Resources and also SKK Migas is quite intense regarding this matter," said Budi.

Budi also explained that the reactivation of the PIM-1 factory, which was carried out some time ago, used the remaining LNG from the cargo allocation in 2021. "Thank God, the Ministry of Energy and Mineral Resources will seek to transfer cargo from other places so that it can be used by PIM-1," said Budi.

Budi explained that the PIM-1 factory, which had been able to operate again after 10 years of suspended animation, could now be reactivated. However, the operation is currently being suspended and the gas allocation will be used as a reserve for the PIM-2 plant.

Budi added that PT PIM in 2022 targets urea production of 640 thousand tons. PIM is also diversifying its products by building an NPK factory with a capacity of 500 thousand tons per year.

"With the new factory and strong support from the Ministry of Energy and Mineral Resources in the supply of gas for PIM-1 reactivation, God willing, we will be able to steadily support food security through the provision of fertilizers, especially in the Northern Sumatra region," he said.

PIM currently has a stock of 60,563 tons of fertilizer from lines 1 to 3. This figure is sufficient to meet the needs in PT PIM's area of responsibility for the next month. "Supply of fertilizer, especially subsidized fertilizer, is safe according to the allocation," said Budi.