Gresik, July 10, 2024 – Pupuk Indonesia Group has inaugurated the operation of a 20,000-ton capacity urea bulk warehouse located in the PT Petrokimia Gresik area. This milestone demonstrates Pupuk Indonesia Group's dedication to preparing infrastructure for optimizing fertilizer supply chains to support national food security.

Rahmad Pribadi, President Director of PT Pupuk Indonesia (Persero), stated that the construction of this urea bulk warehouse is a strategic and progressive step by Pupuk Indonesia through its subsidiary, Petrokimia Gresik, to enhance product storage capacity and operational cost efficiency.

"This warehouse facility is a crucial part of the company's supply chain management. I believe this warehouse will assist Pupuk Indonesia Group in supporting national food security and aid Petrokimia Gresik's future growth," Rahmad explained.

The addition of this urea bulk warehouse increases Pupuk Indonesia's total warehouse capacity to 2.84 million tons and strengthens Pupuk Indonesia Group's supply chain facilities, which currently include 129 sea routes, 1,160 land distribution routes, and 3 railway routes.

Furthermore, it was elaborated that this bulk warehouse is a strategic move by Petrokimia Gresik, which aims to become a dominant global player in integrated agro solutions and industrial chemicals. The presence of this urea bulk warehouse is expected to contribute significantly to the fertilizer and chemical industry not only at the national level but also globally.

Rahmad also welcomed the strategic steps taken by Petrokimia Gresik in supporting national food security, including the preparation of the Phonska V Plant and the Soda Ash Plant. As the patent holder of the NPK process, Petrokimia Gresik has achieved savings of over IDR 50 billion on the Phonska V development project, which uses a self-management scheme from the total project value of IDR 507 billion.

The Soda Ash Plant produces soda ash, a raw material for various everyday products such as soap, detergents, paper, textiles, ceramics, glass, and their derivatives. The demand for soda ash in Indonesia is high, yet the supply is currently 100% met through imports. In addition to Petrokimia Gresik, Pupuk Indonesia will also develop a soda ash plant at Pupuk Kaltim.

Petrokimia Gresik's ability to produce green surfactants and soda ash is expected to boost the Domestic Component Level (TKDN) for the national industry, in line with directives from the President of Indonesia.

"Congratulations to the entire Petrokimia Gresik family for successfully executing this project. It sets an example for Pupuk Indonesia Group on managing warehouses with less carbon using electrification and loaders, reducing losses. We hope this warehouse will benefit and support Petrokimia Gresik's operational and financial performance," Rahmad concluded.

The inauguration of the 20,000-ton capacity urea bulk warehouse was conducted by Rahmad Pribadi, President Director of Pupuk Indonesia, along with Dwi Satriyo Annurogo, President Director of Petrokimia Gresik. This inauguration is part of the "52nd Anniversary Celebration of Petrokimia Gresik" event in Gresik, East Java.