Minister Of BUMN: NPK Fertilizer Factory Inauguration In Aceh Will Increase National Production Capacity

Minister of SOEs Erick Thohir. (Photo: Doc. Ministry of SOEs)

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir said the production capacity at the NPK fertilizer plant will reach 500,000 tons per year. Erick said, this amount adds to the national NPK fertilizer production capacity.

In fact, Erick admits, it will fulfill some of the NPK fertilizer needs in North Sumatra. The fertilizer is produced by PT Pupuk Iskandar Muda (PIM).

The NPK fertilizer factory was inaugurated by President Joko Widodo (Jokowi) today. The factory is located in the Arun Special Economic Zone (SEZ), Lhokseumawe, Aceh.

"The operation of this special NPK fertilizer factory is proof of commitment, as well as carrying out the constitutional mandate and the President's directives in the strategic provision of fertilizers in terms of food security to support the vision of Indonesia Gold 2045," said Erick in an official statement, Friday, February 10.

Erick hopes that the factory will not only fulfill part of the national fertilizer needs, but also maintain the stability of national food prices.

Furthermore, Erick said, currently, the total production capacity of NPK fertilizer reaches 3.2 million tons per year.

The presence of the new NPK factory brings the total production capacity to 3.7 million tons.

Meanwhile, the projected need for national NPK is close to 13.5 million tons, most of which are met by private NPK producers and imported products.

Erick ensured that the use of the chemical process NPK fertilizer plant was the work of the nation's children, because it was carried out by Petrokimia Gresik, which is also a subsidiary of PT Pupuk Indonesia (Persero).

"With all its uniqueness and advantages, this project will provide a multiplier effect for the economy of the people of Aceh and is projected to increase Aceh's gross regional domestic product (GRDP) by 4.13 percent," he said.

Not only building the NPK factory, but Erick said PT PIM also succeeded in reactivating the PIM-1 urea plant. He said, this previously stopped operating since 2012 due to running out of gas supply.

"With reactivation, PIM-1 is ready to help fulfilling national urea needs," he said.