Cooperating With Russia, Coordinating Minister For Maritime Affairs And Fisheries Will Restart Fertilizer Factory In Aceh

JAKARTA - Coordinating Minister for Maritime Affairs and Investment (Menko Marves), Luhut Binsar Pandjaitan plans to revive the fertilizer factory owned by PT Pupuk Iskandar Muda in Aceh, by cooperating with Russia.

As is known, a few days ago Luhut was assigned by President Joko Widodo (Jokowi) to Russia. During his visit, Luhut offered various cooperation opportunities, one of which was to offer Russia to revive a fertilizer factory in Aceh.

"Then Pupuk Aceh, we ask them (Russia) if they can go there and also they (Russia) are willing to go there. We hope that we can revive the Aceh fertilizer (factory)," he said on CNBC TV, Monday, August 8.

Regarding the investment value, said Luhut, the government is still calculating it again. This includes still negotiating how the structure of the cooperation will be.

“We are still recalculating it because I also want to negotiate the structure. Do we want them to be the majority for 10 years, after that we return to the majority. We'll see later than now, I just proposed to the President about this. This means that we need to consider carefully how we can give sweetener to them," he said.

For your information, the fertilizer factory in Aceh belonging to PT PIM has just been reactivated on January 29, 2022, after being suspended for 10 years due to the lack of supply of raw materials and technical problems in the field. However, the factory again had to stop.

The reason the factory stopped operating was because the previously provided gas supply was only able to carry out factory testing.