Global Geopolitics Heats Up, Erick Thohir Asks Indonesian Fertilizers To Secure Raw Materials

SOE Minister Erick Thohir/ Photo: IST

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir asked PT Pupuk Indonesia (Persero) to secure the supply chain of raw materials amid the heated geopolitical conflict between Iran and Israel.

According to Erick, Pupuk Indonesia can secure raw materials from abroad to ensure the availability of fertilizers in the country. Given that fertilizer is very crucial for food security.

"Supply chain for fertilizer we have to improve. Like what? What is the need for supply materials for fertilizers itself, such as potash, phospat, and others," Erick told the media crew, when met in Central Jakarta, written Sunday, April 21.

On the other hand, Erick admitted that although in the midst of the current global geopolitical heating, his party is still trying to find investors to enter the fertilizer raw material industry.

"And we have been looking for investment in this raw material for almost two years ourselves. So it's more of a security raw material," he said.

Furthermore, Erick emphasized that geopolitical turmoil should not stop SOEs from expanding their business.

"In fact, with a situation like this, I have reminded us not to slow down, we have to be aggressive. Who knows, in the midst of conditions like this there is opportunity because Indonesia is seen as one of the countries that is stable in economic and political growth," said Erick.

In addition to looking for business opportunities abroad, Erick also encouraged Pupuk Indonesia to immediately complete the homework (PR) that had been provided, namely building fertilizer production in Eastern Indonesia.

"If we look at the mapping in Kalimantan, there are Java, Sumatra, but not yet in the East. That's why there is also a fertilizer factory development in Eastern Indonesia," said Erick.

For your information, Pupuk Indonesia through its subsidiary, PT Pupuk Kalimantan Timur (PKT) is working on a fertilizer factory project in the Fakfak Integrated Industrial Zone, West Papua.

Where the factory is targeted to fully operate in 2028 and can supply 70 to 80 percent or around 4.5 to 5 million tons of national fertilizer needs.