Two Pupuk Factorys In Aceh Closed Because Of Gas Supply, Minister Of Energy And Mineral Resources Jamin Supply Is Safe

JAKARTA - President Joko Widodo revealed that the two fertilizer factories in Aceh were closed due to the absence of gas supply as one of the main ingredients for production. This was revealed by Jokowi when inaugurating the fertilizer factory PT Pupuk Iskandar Muda (PIM) on Friday 10 February.

Responding to this, Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said the problem of gas supply to fertilizer factories in Aceh had been resolved.

"It's finished. This year it's safe," he told the media quoted on Monday, February 13.

Arifin explained that one of the Liquefied Natural Gas (LNG) blocks in Aceh, namely the LNG Arun Block, has a gas supply that is starting to slow down. However, his party has defeated the supply from two other blocks to the fertilizer factory and gas stocks will certainly be safe throughout 2023.

"There is only Block A and Block B for one factory, the other factory is supported, while this is the LNG supply, which we have transferred its needs 4 times to 2023, has been secured," concluded Arifin.

Previously, when inaugurating the Pupuk PIM factory, in his remarks, President Joko Widodo said PIM was one of two fertilizer factories that had been closed in 2005 due to delays in domestic gas supply.

"In Aceh, there are two fertilizer factories that have stopped. Aceh Asian Fertilizer (AAF) and Pupuk Iskandar Muda. What is the problem? This has been the problem since 2005," said the President, quoted from the Youtube channel, Friday, February 10.

Jokowi also asked the Minister of State-Owned Enterprises (BUMN) Erick Thohir and PIM management to immediately seek gas supply so that domestic fertilizer needs are immediately met.

"I don't know for decades that we have let these assets go. I ask the SOE minister to run these two factories, it's okay to take just one first. There are still AFs that need to be seen and calculated. Gas needs are sought. How come we want this basic need to be left alone?" said the head of state.