Driving Innovation, Pupuk Indonesia Generates IDR 1.8 Trillion in Benefits
Palembang, September 5, 2024 – PT Pupuk Indonesia (Persero) has once again reinforced its commitment to addressing future challenges through various innovations. The main focus of Pupuk Indonesia is to prioritize innovations that lead to growth and sustainability in the industry.
Pupuk Indonesia’s President Director, Rahmad Pribadi, stated that innovation in the fertilizer industry is crucial given the strategic role of Pupuk Indonesia in supporting national food security, especially amidst global economic and geopolitical dynamics and climate change, which impact the global food supply chain.
“This is the innovation convention held by Pupuk Indonesia Group. Innovations are selected starting at the subsidiary level, then aggregated and re-competed at the holding level. This aggregation and competition process is designed to facilitate knowledge transfer between subsidiaries, enabling discoveries in one subsidiary to be applied elsewhere within the Pupuk Indonesia Group ecosystem,” explained Rahmad at the Pupuk Indonesia Quality & Innovation (PIQI) 2024 event in Palembang, Wednesday (4/9/2024).
Various innovations by Pupuk Indonesia have proven successful in enhancing operational performance, gaining recognition at both national and global levels. In 2024, Pupuk Indonesia was listed among the 100 best companies in Indonesia by Fortune Indonesia magazine and ranked among the 500 best companies in ASEAN by Fortune magazine.
To sustain positive performance, Pupuk Indonesia will further intensify its innovation culture through annual innovation conventions like PIQI 2024. The PIQI 2024 finalists have demonstrated their ability to meet business needs and challenges at Pupuk Indonesia, including improving operational reliability, reducing production costs, enhancing product competitiveness, and increasing organizational effectiveness.
One example is the innovation by Pupuk Sriwidjaja Palembang, which modified the hydraulic power unit to speed up the repair of hydraulic actuators—a vital component for controlling various equipment and machinery in Urea fertilizer plants. Before this innovation, the repair process took 336 hours and was outsourced. Now, repairs can be done in-house in just 16 hours, enhancing operational reliability, efficiency, and production optimization.
Similarly, Pupuk Kaltim’s innovation in optimizing the coal ratio in boilers has driven energy efficiency, positively impacting the company’s budget.
Another innovation is Petrokimia Gresik’s Phosgreen fertilizer product. This phosphate-based fertilizer features a modified raw material ratio, offering a more competitive price without compromising quality, thus increasing the affordability of non-subsidized fertilizers for farmers.
Pupuk Indonesia has also successfully developed an integrated digital application at the kiosk level (i-Pubers) to reduce correction values and accelerate the process of subsidized fertilizer billing. The application is currently used by over 27,000 kiosks, enhancing farmers' ease of accessing subsidized fertilizers.
This year, PIQI 2024 adopts the theme "Green Growth," focusing on innovations that drive business growth and environmental sustainability. A total of 4,684 innovations from 6,531 employees of Pupuk Indonesia and its subsidiaries were submitted, categorized into Growth, Digital, and Sustainability. These categories were determined based on their potential to support business operations and provide societal benefits.
“In its three years of implementation, the contribution of these innovations has reached IDR 1.8 trillion, a significant amount that demonstrates that the culture of innovation is deeply embedded in Pupuk Indonesia,” concluded Rahmad.