Abu Dhabi, April 23, 2024 - In an important step to maintain national and ASEAN regional food security, PT Pupuk Indonesia (Persero) initiated exploring the development of urea and ammonia with Brunei Fertilizer Industries Sdn Bhd (BFI), a BUMN (state-owned enterprise) from neighboring country, Brunei Darussalam.

Both state-owned enterprises from each country agreed to sign a preliminary agreement or Head of Agreement (HoA) regarding the development of urea and ammonia. This collaboration was signed directly by the President Director of Pupuk Indonesia, Rahmad Pribadi, and the Chief Executive Officer of BFI Sdn Bhd, Harri Kiiski, in Abu Dhabi, United Arab Emirates (UAE).

"Pupuk Indonesia welcomes the cooperation in the development of urea and ammonia with Brunei Fertilizer Industries, as the state-owned fertilizer company in Brunei Darussalam. This collaboration is in line with the mandate received by Pupuk Indonesia as a leader in supporting national food security. As a state-owned enterprise, Pupuk Indonesia, with innovation and best performance, continues to support the increase in agricultural productivity and drive the green transformation of Indonesia's fertilizer and petrochemical industry," said Rahmad.

Initiated by Pupuk Indonesia, this collaboration will be expanded by involving fertilizer producers from other ASEAN countries to promote food security at the regional level.

The core of this collaboration includes agreements by both parties to explore synergies in marketing, operational services and maintenance, collaboration on factory development projects, as well as procurement of essential equipment and emergency spare parts. Additionally, the two state-owned companies from the two neighboring countries will share learnings on health, safety, security, and environmental aspects (HSSE), as well as collaborate in knowledge sharing and training.

Furthermore, Rahmad explained that this collaboration is a joint effort between BFI and Pupuk Indonesia as the initial step to build a mutually beneficial ecosystem in the fertilizer industry in ASEAN, starting from Indonesia and Brunei. In the future, there are many areas for commitment and cooperation with BFI and other fertilizer producers in ASEAN.

"Pupuk Indonesia sees this collaboration will strengthen regional relations, especially in the ASEAN region. We, as fertilizer producers in the ASEAN region, together want to ensure no interruption in our activities, as fertilizer availability is directly related to food security. In this case, it also concerns regional food security," Rahmad explained.

After the signing process, Pupuk Indonesia and BFI will form a joint team consisting of representatives from both parties. Subsidiary companies may also be involved in further implementation based on the signed agreement.

At the same event, BFI's Chief Executive Officer, Harri Kiiski, welcomed the collaboration in the development of urea and ammonia with Pupuk Indonesia. "BFI welcomes this cooperation through the signing of this Head of Agreement. It is not only a company-to-company relationship but also an inter-country relationship at the ASEAN regional level. We believe this cooperation is a workable partnership that will benefit both BFI and Pupuk Indonesia," Harri explained.

With a production capacity of 1,365,000 metric tons of urea per year, BFI, established in 2013, is one of the largest fertilizer plants in the Southeast Asia region. As a BUMN, BFI is committed to progressively and dynamically supporting the downstream oil and gas industry in Brunei Darussalam.

Pupuk Indonesia, as the largest fertilizer company in the Asia Pacific, Middle East, and North Africa, currently has a urea fertilizer production capacity of 9.4 million tons and ammonia of 7 million tons. With this capacity, Pupuk Indonesia plays a crucial role in supporting national food security and significantly contributes to regional food security, especially in ASEAN.