JAKARTA - PT Pupuk Kalimantan Timur (Kaltim) as a subsidiary of PT Pupuk Indonesia (Persero) has been assigned a National Strategic Project (PSN) to build a fertilizer factory in Fakfak, West Papua.
The factory is targeted to start production in 2027.
Managing Director of Pupuk Kaltim Rahmad Pribadi said. This fertilizer factory in West Papua has a production capacity of 2 million tonnes. Consisting of 1.15 million tons of urea and 825,000 tons of ammonia.
"It will be completed later, God willing, production will be in 2027," he said in a press conference, at The Langham Hotel, Jakarta, Wednesday, March 29.
Rahmad said, the construction of the factory was indeed PSN. However, he continued, this project was not a bad assignment because it was good for the company and the country.
Rahmad said, if the factory operates, it will increase Pupuk Kalimantan Timur's production capacity.
"Later, when the factory in Papua is operational, then if we estimate that in 2030 the need for urea fertilizer will reach 6 to 7 million tons with the additional capacity in West Papua, it will be able to meet the demand for urea fertilizer in Indonesia around 80 percent of the urea requirement in the country," he explained.
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Regarding the investment value of a fertilizer factory in West Papua, Rahmad said it would reach tens of trillions. Because this factory will be based on green fields.
"We are calculating, because this is a green field factory, but what is certain is tens of trillions. More than 1 billion dollars," he said.
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