JAKARTA - PT Pupuk Indonesia (Persero) is committed to continuing to support sustainable food self-sufficiency by ensuring the availability and affordability of fertilizer for farmers. One of the efforts being made is by securing the supply of key fertilizer raw materials.
Pupuk Indonesia has agreed to collaborate with Somiphos, an Algerian phosphate mining company. This agreement is outlined in a Memorandum of Understanding (MoU) on the development of the phosphate industry, signed by Pupuk Indonesia's President Director, Rahmad Pribadi, and Somiphos' President Director, Mokhtar Lekhal, in Algeria on Tuesday, January 20, local time.
"Rock Phosphate is a key raw material for the fertilizer industry and can only be obtained through mining. Pupuk Indonesia requires it to produce fertilizer. This collaboration with Somiphos ensures a sustainable supply of this raw material, secures domestic fertilizer needs, and demonstrates its commitment to sustainable national food self-sufficiency," said Rahmad.
Through this collaboration, Pupuk Indonesia receives support for a supply of rock phosphate of up to 1 million tons per year for domestic needs and opens up opportunities for collaboration with several Algerian companies to develop an integrated phosphate-based fertilizer industry project.
This agreement aims to build a partnership to develop cooperation opportunities in the phosphate sector, specifically the possibility of supplying Algerian phosphate to Pupuk Indonesia. It also explores joint investment opportunities in phosphate exploitation and processing activities in Algeria, as well as the development of projects related to phosphate derivative products.
"Therefore, Pupuk Indonesia welcomes the collaboration with Somiphos and the Sonarem Group. This collaboration can ensure sustainable food self-sufficiency by meeting fertilizer raw materials, in this case phosphate," he said.
Also witnessing the signing of the Memorandum of Understanding were the Deputy Minister of Agriculture of the Republic of Indonesia, Sudaryono; the Minister of State, Minister of Energy and Mining of Algeria, Mohamed Arkab; the CEO of the Sonarem Group, Reda Belhaj, and relevant stakeholders.
Deputy Minister of Agriculture Sudaryono stated that this collaboration is part of the implementation of the directive of the President of the Republic of Indonesia, Prabowo Subianto, to strengthen the fertilizer raw material supply chain and lower fertilizer prices for the welfare of Indonesian farmers. Furthermore, dependence on imported raw materials has been a factor influencing the fertilizer cost structure. Therefore, a long-term partnership is considered crucial to strengthening national food security.
"President Prabowo Subianto has provided very clear direction that the government must be present to ensure fertilizer is available, affordable, and timely for farmers. This phosphate cooperation with Algeria is a concrete step to strengthen the upstream national fertilizer industry so that production costs can be reduced and fertilizer prices for the people are more affordable," said the Deputy Minister of Agriculture.
"The results of this collaboration are expected to create added value, increase the efficiency of the national fertilizer industry, and support the government's program to achieve food self-sufficiency," he added.
Algerian Minister of State, Energy and Mining, Mohamed Arkab, emphasized that the signing of this memorandum of understanding is part of the Algerian President's directive aimed at strengthening economic partnerships with friendly countries. This is particularly true in the strategic mining sector (especially phosphate), which is considered a key pillar in the process of national economic diversification, development of the processing industry, and creation of added value.
He emphasized the importance of this partnership in supporting Algeria-Indonesia cooperation. It also encourages productive investment and the transfer of experience and technology for the mutual benefit of both countries.
In addition to Somiphos, Pupuk Indonesia is also exploring collaboration with Sonatrach, an Algerian state-owned oil and gas company, to create a fertilizer industry ecosystem in Algeria. "With the availability and affordable price of gas in Algeria, we can work together to develop an integrated fertilizer industry ecosystem in Algeria whose products can be used for national needs," added Rahmad Pribadi.
Somiphos itself is an Algerian state-owned phosphate mining company engaged in the exploration, mining, processing, and marketing of rock phosphate.
Somiphos operates in the Tebessa region of eastern Algeria and is known as a major phosphate producer from the Djebel Onk mining area, one of Algeria's largest phosphate deposits. The company was founded in January 2005 as part of the reorganization of the national phosphate industry and is part of the SONAREM Group (Algeria's national mining company).
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