Pupuk Hidup Factory Again, This BUMN Is Ready To Make Aceh Hub Energi

Illustration of Pupuk (photo: intermediate dock)

JAKARTA - The government has again inaugurated the Pupuk Iskandar Muda Aceh Factory which has been closed since 2012 on Friday, February 10.

President Director of Pupuk Indonesia Bakir Pasaman appreciated the support provided by President Joko Widodo and Minister of State-Owned Enterprises (BUMN) Erick Thohir in reviving the PIM factory.

"We are very grateful for the efforts made by the Government, in this case the Minister of SOEs Erick Thohir, who intensely communicated with the Ministry of Energy and Mineral Resources, SKK Migas, and other related parties, so that the Pupuk Iskandar Muda 1 factory operates again and gets gas supply," he said in a statement to the media, Thursday, February 16.

With the operation of the PIM 1 factory, Bakir continued, the production capacity of urea installed by Pupuk Indonesia Group has increased by around 570,000 tons per year. With the operation of PIM 1, it also complements the PIM 2 fertilizer factory which is also with a capacity of 570,000 tons per year.

Thus, the total production of Urea fertilizer at PIM 1 and PIM 2 reaches 1.14 million tons per year. In addition, Pupuk Indonesia also increases the production capacity of NPK fertilizers through the operation of the PIM NPK Factory with a capacity of 500,000 tons per year.

The existence of the new PIM NPK plant directly adds the country's ability to meet the national NPK needs to around 3.7 million tons of the total need which is estimated to reach 13.5 million tons per year, most of which are met by private fertilizer producers and imported products.

He added that the PIM NPK factory is the work of the nation's children, because it adopts processing technology owned by PT Petrokimia Gresik which is also a subsidiary of Pupuk Indonesia. The production of NPK from a factory with an investment value of around IDR 1.7 trillion will meet the needs of North Sumatra (Sumbagut) and Aceh.

He further explained that Pupuk Indonesia through Pupuk Iskandar Muda will also contribute to advancing the Aceh economy through the development of a green industrial cluster or Green Industry Cluster (GIC) in SEZ Arun. One of its efforts is to involve PIM as a joint BUMN consortium with PT Pertamina, PT Pelindo, and PT Pembangunan Aceh (PEMA).

This consortium has signed a Head of Agreement (HoA) with Capital Participation at PT Patriot Nusantara Aceh as the Development and Management Business Entity (BUPP) of SEZ Arun.

He continued, Pupuk Indonesia Group will develop a future energy hub, namely blue and green ammonia, as well as biomethane. Meanwhile, other consortium members will develop SEZs as LNG hubs to support gas production generated from the Andaman Block.

"This Green Industry Cluster will later contribute to achieving the commitment of net-zero emissions in 2060 or according to the Vision of Indonesia 2045 regarding energy security," concluded Bakir.