Encourage The Development Of Fertilizer Factories, Minister Of Investment: No Movement To Prevent PSN Programs

Illustration (Photo: Doc. Antara)

JAKARTA - The Ministry of Investment/Investment Coordinating Agency (BKPM) held a Kick-Off Meeting for the Development of Fertilizer Industrial Estates in Fakfak Regency, West Papua Province, Monday, February 27.

In his remarks, the Head of BKPM Bahlil Lahadalia emphasized that members of the Investment Acceleration Task Force and other relevant Ministries are ready to oversee the acceleration of the project implementation.

Bahlil said that the construction of fertilizers in West Papua Province is a long process until the economic value and implementation steps of this project are found.

This fertilizer industrial estate project is a big project in order to build a food barn in Eastern Indonesia.

So far, bringing fertilizer to the Papua area requires high logistics costs, making it difficult to develop the agricultural sector.

"This project has been included in the PSN (National Strategic Project). Therefore, according to the President's direction, we must guard it thoroughly. There should not be additional movements that hinder the implementation of PSN," said Bahlil in Jakarta, quoted on Tuesday, February 28.

During the meeting, Minister Bahlil also appreciated the support from various other ministries and technical institutions that helped and oversee the acceleration of investment in the fertilizer industrial estate project in West Papua.

He also emphasized that this work must be carried out simultaneously and in parallel while still obeying the rules of the law.

"We hope that the relevant ministries/agencies can help the implementation process and oversee the project well. Good development should not be disturbed, which we have not fixed well," said Bahlil.

Adding to the direction of the Minister of Investment, Deputy Minister of SOEs I Pahala Mansury conveyed things that need special attention, among others, related to the feasibility study (FS) project so that the projected Internal Rate of Return (IRR) figure is not much different from the realization later, then related to the release of areas that need further coordination with the Ministry of Environment and Forestry (KLHK), as well as coordination with the Ministry.

"According to the direction of the Minister of SOEs, we really support this fertilizer industry project and also ensure that gas production in Eastern Indonesia is really monetized and capable of producing fertilizers because there is no fertilizer production facility in the East yet," said Pahala.

President Director of PT Pupuk, East Kalimantan (PKT) Rahmad Pribadi said that PKT has an important role for Indonesia's food security.

It is estimated that PKT is ready to supply urea needs of 5 million tons or about 80 percent of Indonesia's fertilizer needs by 2030.

The Fakfak fertilizer industrial project is targeted to operate commercially in the second semester of 2027.

"We need support in terms of land acquisition, acceleration of permits, land preparation and road access, certainty of spatial planning, and other related permits from the relevant ministries. We also need security support from the Indonesian Police and the TNI and the Attorney General's Office in the implementation of this project," concluded Rahmad.

The Pupuk Fakfak Industrial Estate Project, West Papua has been designated as a National Strategic Project (PSN) on December 12, 2022, based on the Regulation of the Coordinating Minister for Economic Affairs Number 21 of 2022 concerning the Second Amendment to the Regulation of the Coordinating Minister for Economic Affairs Number 7 of 2021 concerning Amendments to the National Strategic Project List as amendments to Presidential Regulation No. 109 of 2020 concerning the Third Amendment to Presidential Regulation Number 3 of 2016 concerning Acceleration of Implementation of National Strategic Projects.

On February 9, 2023, the manager and implementer of the Pupuk Fakfak Industrial Estate was appointed, namely PT Pupuk Kaltim Tim Timur (PT PKT) and Kaltim Industrial Estate (KIE).