(photo source : Presidential Secretariat)

FAKFAK - PT Pupuk Indonesia (Persero), through its subsidiary, PT Pupuk Kalimantan Timur, has initiated the construction of the National Strategic Project (PSN) Fertilizer Industrial Area in the Fakfak Regency, West Papua. This was marked by a groundbreaking ceremony, or the laying of the first stone, by the President of the Republic of Indonesia (RI), Joko Widodo, on Thursday (23/11/2023). The construction of this fertilizer industrial area is the first in Indonesia in the last 40 years.

President Joko Widodo welcomed the plan for the development of the Fertilizer Industrial Area in Fakfak. This project is a significant national strategy in facing the threat of global food crises and realizing national food sovereignty. In the future, the fertilizer plant to be built will support the plan or program of the South Papua Province to become the national food barn.

"For 40 years, we have had five fertilizer industries, all of them located in the western region. In the eastern region, there is none at all. Therefore, when I heard about this plan, I immediately instructed it to be executed so that the eastern region also has a fertilizer industry. This is a big plan, mutually supportive, and we hope that the land of Papua will become more prosperous and prosperous," stated the President.

Meanwhile, the President Director of Pupuk Indonesia, Rahmad Pribadi, explained that the construction of the first fertilizer industrial area in Indonesia began in Palembang in 1959, followed by Gresik (1972), Cikampek (1975), and Bontang (1977). Meanwhile, Indonesia last built a fertilizer industry in 1982 in Aceh. This means that this project becomes a new fertilizer industrial area built domestically after four decades.In this area, a factory with a production capacity of 1,150,000 tons per year for Urea fertilizer and 825,000 tons per year for ammonia will be built.

"Pupuk Indonesia will continue to support the government in the national food resilience program, one of which is by increasing fertilizer production capacity through the Fakfak Fertilizer Industrial Area Project. Its existence will supply the fertilizer needs in Indonesia, especially for the agricultural sector," Rahmad emphasized.

With this additional capacity, Rahmad continued, the presence of the new fertilizer industrial area in West Papua will strengthen Pupuk Indonesia's position as the largest fertilizer provider in the Asia-Pacific, the Middle East, and North Africa. Furthermore, Rahmad also explained that this fertilizer industrial area will bring many benefits to the Eastern Indonesian people, the government, and the country. In addition to supporting the investment climate, this project will employ 10,000 people during the construction period and 400 people when operational.

The potential contribution to domestic economic growth through the use of Domestic Component Levels (TKDN) in the project is estimated to reach around IDR 10 trillion. Meanwhile, the contribution to regional income is estimated to reach IDR 15 billion per year.

"The existence of this fertilizer industrial area will have an impact on economic growth in Eastern Indonesia. This industrial area can also provide a positive contribution by encouraging the growth of supporting businesses in the surrounding area by around IDR 650 billion per year," Rahmad stated.

Finally, he revealed that the Urea fertilizer plant is targeted to start production in early 2028. The project is run by Pupuk Kalimantan Timur, which is one of the members of the Pupuk Indonesia holding.

"This plant is built through the ESG approach, which is the utilization of new, lower-carbon, and environmentally friendly technologies," Rahmad concluded.