KARAWANG - The government through PT Pupuk Indonesia (Persero) is encouraging increased efficiency in the production of national fertilizers by building and revitalizing seven fertilizer plants which are targeted to be completed by 2029 with an investment estimated at Rp. 57 trillion.
The step is an obligation of Presidential Regulation (Perpres) Number 113 of 2025 concerning the Management of Subsidized Fertilizer.
Deputy Minister of Agriculture Sudaryono said the seven production facilities covered the construction of new factories, as well as the revitalization of old factories to increase production capacity.
"This construction aims to increase the capacity of national fertilizer production in order to support the vision of the President, who places the agricultural and food sectors as the main priority of the government program," he said after groundbreaking the NPK Nitrate Plant in the Kujang Fertilizer Industrial Estate, Karawang, Tuesday, December 23.
Sudaryono said that several locations that had been mapped to work on the project included Aceh, Palembang, Gresik, Karawang, Fak-Fak, and Bontang.
"Until 2029, the target is to build seven new fertilizer plants," he said.
Sudaryono said there were two main objectives for the construction of seven new fertilizer plants in Indonesia. First, replacing old factories that are old and less efficient.
Second, continued Sudaryono, to replace imported fertilizer. If there is still an import, there will be room to increase domestic production.
"One of the visions of why these seven factories are planned is to see the growth of national fertilizer needs. Regarding investment, the total investment value reaches around Rp. 57 trillion in a five-year period," he said.
Meanwhile, the President Director of Pupuk Indonesia Rahmad Pribadi said that Presidential Decree 113/2025 is a solution to the findings of old fertilizer factories that are wasteful and less productive.
He explained that in addition to the fertilizer factory owned by Pupuk Kujang, which was just groundbreaking today, there is also the construction of a fertilizer factory owned by PT Pupuk Kalimantan Timur (PKT), PT Pupuk Sriwidjaja, then later continued with the construction of a fertilizer factory by PT Petrokimia Gresik and PT Pupuk Iskandar Muda.
"So that's what we're doing, so that in accordance with the safety in Perpres 113, we will build a newer, more modern, more efficient fertilizer plant," said Rahmad.
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