JAKARTA – Commemorating its 11th Anniversary, PT Pupuk Indonesia (Persero) continues to contribute to the country through the achievement of a number of important targets set by shareholders. This achievement can be seen in the company's management report with an operational performance record (audited) in 2022.  

President Director of Pupuk Indonesia, Bakir Pasaman, stated that this performance achievement also strengthens the company's position to always have an economic and social impact on the community, nation and state. 

For example, an increase in EBITDA of IDR 30.78 trillion in 2022 or 224% of the RKAP 2022 of IDR 13.74 trillion. One of the contributions to EBITDA is obtained through transformation programs that have a positive impact on the company. Total EBITDA uplift from the transformation program in 2022 reached IDR 1.94 trillion. This figure increased compared to the previous year of Rp1.03 trillion.

"This EBITDA uplift comes from efforts to increase the availability of non-subsidized fertilizers to improve services, farm productivity, and farmers' incomes. Both through the Retail Management program, the development of commercial kiosks, to the expansion of the Agrosolution and Makmur programs," said Bakir in Jakarta, Monday (3/4/2023).

Furthermore, Bakir said that the increase in EBITDA also came from the supply chain optimization process. Starting from the aspects of joint procurement, centralization of sales and marketing, the application of digitalization, to the optimization of Pupuk Indonesia Group assets.

In 2022, Pupuk Indonesia also achieved production realization of 18.94 million tons, consisting of 11.80 million tons of fertilizer and 7.14 million tons of non-fertilizer. Pupuk Indonesia posted a sales volume of 13.02 million tons consisting of subsidized fertilizers of 7.41 million tons, non-subsidized fertilizers of 4.11 million tons, non-fertilizer products of 1.45 million tons, and trading fertilizer sales of 49,163 tons.

From these sales, Bakir said that Pupuk Indonesia managed to record an audited net profit of IDR 18.51 trillion, up from 2022's profit of IDR 5.13 trillion. The net profit was successfully obtained after Pupuk Indonesia realized revenue of IDR 103.86 trillion or 134.99 percent of the 2022 RKAP of IDR 76.94 trillion.

The achievement of 2022 performance is certainly supported by a number of strategic programs. Such as the retail non-subsidized fertilizer sales program or Retail Management which succeeded in selling 547 thousand tons of non-subsidized fertilizer or 105% of the 2022 RKAP target. 

Then the Agrosolution and Makmur programs were realized on an area of 271 thousand hectares or 109% of the target of 250 thousand hectares. In this program, the company also succeeded in selling retail urea non-subsidized fertilizers of 36.45 thousand tons and non-urea of 75.39 thousand tons.

Efforts to increase the availability of non-subsidized fertilizers also continue to be carried out through the development of commercial kiosks or Pe-i Shops. In 2022, Toko Pe-i has established 350 stalls in various regions. The company will continue to develop it until it reaches the target of 1,000 kiosks by 2023.

"In addition to increasing the coverage area of the group's PI kiosks, the above program also aims to increase farmers' access to non-subsidized or commercial fertilizers. This also aims to fill the gap in fertilizer needs that have not been accommodated in subsidies," explained Bakir.

In addition, the company's performance is also supported by a number of other strategic programs. Such as supply chain optimization, factory production and maintenance, implementation of data science, cost-reduction programs, strategic strengthening in the field of human capital, and so on, as well as the application of digitalization in almost all business lines and company operations.

Regarding the assignment of subsidized fertilizers, Pupuk Indonesia continues to support the government's efforts in improving the governance of subsidized fertilizer distribution through digitalization. In this case, Pupuk Indonesia applies the Distribution Planning & Control System (DPCS) and Track & Trace to monitor fertilizer distribution in real time. At the kiosk level, Pupuk Indonesia also conducted a trial of the Retail Management System or REKAN digital application in Bali and Aceh Provinces. This application aims to facilitate the process of redeeming subsidized fertilizers by farmers. 

Pupuk Indonesia Go Global

According to the direction of SOE Minister Erick Thohir, Pupuk Indonesia is encouraged to be able to Go Global and become a player at the world level. This is because Pupuk Indonesia is one of the largest producers of ammonia and urea fertilizer in the world.

One of the strategic efforts made by Pupuk Indonesia in 2022 is to open a representative office in Dubai, United Arab Emirates (UAE). This representative office aims to facilitate the company in access to fertilizer raw materials, as well as other industrial development. In addition, it also has the potential to expand opportunities for trade cooperation in ammonia, urea, NPK, and other products, with global suppliers and partners.

The global expansion of Pupuk Indonesia is becoming increasingly relevant because the company has plans to develop low-carbon and clean ammonia, through blue ammonia and green ammonia. Where these two types of ammonia will be one of the world's future clean energy sources. In addition, of course, it is in line with the Indonesian government's Net Zero Emission (NZE) target by 2060.  

Not only that, Pupuk Indonesia also continues to encourage the clean energy ecosystem in Indonesia by developing a Green Industry Cluster (KIH) located in the Arun Special Economic Zone (SEZ) in Lhokseumawe, Aceh. This 2,600-hectare area will later develop blue ammonia, green ammonia, biomethane, and become an LNG Hub that utilizes gas potential from the Andaman Block.

"We support President Joko Widodo's idea to make Aceh a future energy hub in Indonesia. The form of support for Pupuk Indonesia is by entering as a member of the consortium formed by the Ministry of SOEs," explained Bakir.