Business Transformation Makes Pupuk Indonesia's Profits Doubled

Sriwidjaja Palembang Fertilizer Factory, a subsidiary of Pupuk Indonesia. (Photo: ANTARA)

JAKARTA - The business transformation carried out by PT Pupuk Indonesia throughout 2021 has yielded results.

This is reflected in the significant improvement in various company performance indicators.

"The transformation launched by the Minister of SOEs Erick Thohir since 2020 has had a positive impact on the company's performance. Pupuk Indonesia's total profit in 2021 will reach Rp. 5.13 trillion, up 220 percent compared to Rp. 2.3 trillion in 2020," said President Director of PT Pupuk Indonesia Bakir Pasaman as quoted from Antara, Friday, June 17.

This transformation in all fields is marked by the centralization of a number of strategic areas aimed at generating value creation, or added value for holdings and subsidiaries.

Through the business transformation program, Pupuk Indonesia has transformed from a strategic holding to an activist holding.

"In addition, we can also take good advantage of the good price momentum in the international market, especially for ammonia and urea," said Bakir.

He explained that the positive performance achieved by the Pupuk Indonesia Group cannot be separated from the role of its subsidiaries.

"Profit of Pupuk Kaltim in 2021 has more than tripled compared to 2020. Likewise, the profit of PT Pusri, PT Pupuk Iskandar Muda (PIM) and Pupuk Kujang grew four times," said Bakir.

Meanwhile, Petrokimia Gresik's profit increased by 137 percent compared to 2020.

Overall, other subsidiaries such as Mega Eltra, Pupuk Indonesia Utilitas and Pupuk Indonesia Logistik also showed a positive trend.

Even so, there is a subsidiary, namely PT Rekind that has not yet made a profit, which is currently conducting a restructuring program to restore performance.

Pupuk Indonesia is currently preparing a number of projects and developments, including the urea, ammonia and methanol plant project in West Papua, the Pusri 3B project in Pusri Palembang.

Furthermore, the Red and White Catalyst project at Pupuk Kujang, the completion of the NPK project at Pupuk Iskandar Muda, to the Soda Ash factory project at Pupuk Kaltim and Petrokimia Gresik.