Karawang - Pupuk Kujang has entered into a Memorandum of Understanding (MoU) with Husky-CNOOC Madura Ltd (HCML). "This long-term gas supply will help us provide affordable fertilizer for Indonesian farmers, so we are taking steps to develop a new manufacturing unit,” stated Maryono, President Director of Pupuk Kujang, on Saturday, June 23, 2024.

“Kujang 1C is extra environmentally friendly compared to the outdated Kujang 1A manufacturing unit,” Maryono said.

Maryono explained that currently Pupuk Kujang has two factories, namely Kujang 1A, which has been operating since 1978, and Kujang 1B, which has been operating since 2006. With the assistance of PT Pupuk Indonesia (Persero), Pupuk Kujang plans to construct a brand new Kujang 1C manufacturing unit as a replacement for the outdated and relatively inefficient Kujang 1A unit. The Kujang 1C development plan will be outlined in the company’s Long-Term Plan.

Due to this, at the 2024 Natural Gas Forum, Pupuk Kujang entered into a memorandum of understanding concerning long-term gas supply with Husky-CNOOC Madura Ltd. (HCML) to support the development of the new Kujang 1C manufacturing unit. he MoU signing ceremony was held on Friday, June 2, 2024, in Bandung. The collaboration with HCML will be established with the support of the Ministry of Energy and Mineral Resources, SKK Migas, and PT Pupuk Indonesia (Persero).

Subsequently, HCML will provide 48 BBTUD of natural gas for 20 years using the Cisem (Cirebon-Semarang) gas pipeline. The development of the Cisem pipeline part II is a National Strategic Project (PSN) initiated by the government through the Ministry of Energy and Mineral Resources. Through this project, the gas supply systems in western and eastern Java Island will be connected, thereby increasing the reliability of gas supply on Java Island.

"With this governmental support for gas infrastructure, through secured HCML gas supply overseen by SKK Migas, and support from Pupuk Indonesia, Bismillah, Pupuk Kujang is prepared to strategize and implement the new Kujang-1C manufacturing unit construction project," said Maryono.

Moreover, Maryono highlighted that this synergy demonstrates how gas infrastructure development contributes not only to secure the energy supply but also bolster national food security. With assured long-term gas supply and the Kujang 1C manufacturing unit which eviromentally friendly, Pupuk Kujang will be able to produce high-quality fertilizer at a more affordable cost, benefiting farmers.. (hl/smg/KP)