This Is The Reason Jokowi Builds The Fertilizer Industry In Fakfak Papua

JAKARTA - President Joko Widodo accompanied by Minister of Energy and Mineral Resources Arifin Tasrif, Minister of State Secretary Pratikno, and Minister of Investment Bahlil Lahadalia, placed the first stone or groundbreaking for the National Strategic Project of the Pupuk Fakfak Industrial Estate in Arguni District, Fakfak Regency, West Papua on Thursday, November 23.

In his remarks, President Joko Widodo said that Indonesia already has 5 fertilizer industries that have been operating for 40 years and the majority are in the western region of Indonesia.

He explained that this fertilizer industry project is part of the downstreaming of the energy sector and other related sectors which aims to improve the regional economy and meet the needs of the domestic downstream industry.

"Therefore, after hearing that there is a plan to be executed immediately so that the eastern region has a fertilizer industry and the reason is built here is because it is close to the gas supply," said Jokowi.

In the future, he said, the gas supply for the Fakfak Fertilizer Industrial Estate will be supplied from the Smoked Gas Field, Kido, Merah (AKM) which will soon begin its development in the Bintuni Bay area, West Papua.

"The AKM project is the first supporter of petrochemical development in Eastern Indonesia with gas supply to Pupuk Kaltim in Fakfak," said Head of the Communications Bureau of Public Information Services and Cooperation of the Ministry of Energy and Mineral Resources Agus Cahyono Adi, quoted on Friday, November 24.

As you know, the AKM Project itself was operated by Genting Oil Kasuri Pte. Ltd. (GOKPL) as an operator in the Kasuri Working Area which obtained approval for the Revision of POD 1 on February 2023 to develop the AKM Field, with a gas reservoir of 2.6 TSCF. The AKM project itself will produce gas reserves (Gross) of 2,244.45 BSCF and condensate production of 5.4 MMSTB. The total investment value of this project is 3.37 billion US dollars.

The development of the AKM Field is expected to contribute directly to the National Production target of 1 million barrels by 2030 and the absorption of local workers in Teluk Bintuni and Fakfak Regencies during the construction period.