Successfully Maximizing National Resources, Pupuk Iskandar Muda Factory Made By PTPP President Jokowi

JAKARTA - The state-owned construction company, PT PP (Persero) Tbk, has successfully completed the construction of the PIM NPK factory located in the Arun Lhokseumawe SEZ area of Aceh Province. The fertilizer factory construction project was officially inaugurated by the President of the Republic of Indonesia, Joko Widodo, which was symbolically marked by a procession of pressing the switch on button and signing the inscription.

During the inauguration, President Joko Widodo was accompanied by Minister of SOEs Erick Thohir, Minister of State Secretary Pratikno, Deputy Minister of BUMN 1 Pahala Nugraha Mansury, Acting Governor of Aceh Achmad Marzuki, Acting Mayor of Lhokseumawe Imran, Acting Regent of North Aceh Azwardi, President Director of PTPP Novel Arsyad, Director of Operations for EPC Eddy Herman Harun, and other government officials and officials. The inauguration ceremony was held directly at the location of Arun Lhokseumawe SEZ factory, Aceh today, Friday 10 February.

The Nitrogen Pupuk, Phosphat, and Kalium (NPK) factories owned by PT Pupuk Iskandar Muda are one of the National Strategic Projects (PSN) launched by the Government. The construction of this NPK fertilizer factory is a fertilizer factory construction project using the Chemical Reaction method which has a capacity of 500,000 metric tons per year (MTPY).

The NPK factory construction project has been carried out since March 2019 and started operating in January 2023. The scope of Engineering Procurement Commissioning (EPCC) work carried out by PTPP includes: civil work, mechanical work, piping work, electrical work, and instrumentation.

In the project, PTPP acts as a major EPC contractor who is trusted and appointed by project owners to build and work on the project, starting from the factory design process to the production of NPK fertilizer products from the factory. The implementation of the construction of the NPK fertilizer factory is purely carried out by engineers and national workers without any interference from foreign parties.

The construction of the NPK fertilizer factory has succeeded in optimizing the use of domestic products by contributing to TKDN by 85.30 percent. In addition, this NPK fertilizer factory has used the latest technology in the process of pocketing or packing using automatic bagging and palletizing.

Through the latest technology consisting of two automatic bagging and two semi auto-baging units, it can produce a fertilizer packaging production capacity of 1,200 bags per day.

The presence of this PIM NPK factory has a wide multiplier effect either through employment and other economic activities where this factory can absorb 1,189 project workers and 240 workers after the project or when operating from the surrounding environment.

During its construction period, there were 35 local companies that had synergized in the project. The presence of this fertilizer factory aims to meet the needs of NPK fertilizers in the West Sumatra and Indonesia.

In addition, the existence of this fertilizer factory not only supports national food security but also has an economic impact on people in Aceh Province.

PTPP President Director Novel Arsyad said his party was happy to be able to complete the construction of the NPK fertilizer factory PT Pupuk Iskandar Muda (NPK PIM) project amidst the impact of the COVID-19 pandemic that hit Indonesia and the rest of the world, resulting in paralysis and weakening of global economic conditions.

It didn't stop there, he said, another challenge in working on the project was the occurrence of global inflation due to the outbreak of war between Russia and Ukraine which resulted in the creep of rising production goods from both within and outside the country.

"However, under these various conditions, PTPP remains committed to completing the construction of the PIM NPK fertilizer factory. Not only that, PTPP also continues to present the best quality and benefit the Indonesian people. The presence of the PIM NPK factory in Aceh is specifically expected to improve the economy of the surrounding community. Lhoksuemawe," said Novel Arsyad.

In the future, Novel Arsyad said, PTPP will continue to synergize with the government and state-owned companies to jointly build infrastructure in Indonesia, including EPC projects.

"PTPP will also always prioritize and improve the quality of work results and on time in completion," he concluded.