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Wamen BUMN Pahala Mansury Dorong PT PIM Bangun Ketahanan Pangan Dan Energi Nasional

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Journalist Report, Reynas Abdila

JAKARTA – Deputy Minister of SOEs I Pahala Nugraha Mansury encouraged PT Pupuk Iskandar Muda (PT PIM) to participate in building food security and national energy security.

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Efforts have been made starting from the development of the NPK factory and the development of the Green Industry Cluster (GIC).

Pahala hopes that PT PIM, which is a subsidiary of PT Pupuk Indonesia (Persero) can increase its production capacity, among others through the construction of an NPK factory with a capacity of 500 thousand tons per year and reactivation of the PIM-1 urea plant.

“This NPK factory must be completed and commercialized in November or December this year,” said Pahala during his working visit, quoted on Friday (12/8/2022).

According to him, the addition of NPK production capacity is a big step for the future development of PT PIM.

“Alhamdulillah, I was reported by the Board of Directors of PT PP, the progress is quite good and the completion can be reached around November,” he added.

Furthermore, Pahala said that the current national demand for NPK fertilizer is around 8 million tons, while the production capacity of Pupuk Indonesia Group is 3.4 million tons.

“This additional production capacity of 500 thousand tons certainly contributes significantly to the fulfillment of national NPK fertilizer needs,” he said.

He also added that this NPK factory must later be supported by the fulfillment of good feedstock or raw materials, especially potash or potassium raw materials originating from Russia.

Apart from building a new NPK factory, Pahala also supports PT PIM’s efforts to reactivate the PIM-1 factory. This reactivation is also expected to increase PT PIM’s urea production capacity.

The challenge in carrying out this reactivation is that there are still gas supply constraints.

“Currently we are waiting on how to obtain gas supply for the reactivation of PIM-1, where we know the need is around 55 MMSCFD. So we are working on this by coordinating with the Pupuk Indonesia holding, as well as Pertamina and PGN,” said Pahala.

Furthermore, Pahala revealed that in the context of energy security, the Ministry of SOEs also has an initiative to develop Green Industry Clusters.

“Green Industry Cluster is an industrial area that uses green-based energy,” said Pahala.

And one of the commodities that have the potential to be developed at PT PIM is Blue and Green Ammonia.

“We hope that this industrial area can be realized soon. With the existence of a green industry cluster, PT PIM is not only a fertilizer company but also a company that can support food security and energy security,” explained Pahala.

Director of Portfolio and Business Development for Indonesian Fertilizers, Jamsaton Nababan, revealed that the development of this area is in accordance with the SOE Ministry’s house green industry cluster strategy which targets carbon reductions of up to 29 percent in 2030, and net-zero emissions by 2060.

The strategies carried out include, among others, the use of new and renewable energy, implementation of carbon capture technology, increasing efficiency, as well as developing environmentally friendly businesses and industries.

Regarding gas supply for the reactivation of PIM-1, he said that his party had submitted a request for support to the Ministry of Energy and Mineral Resources for LNG procurement, both through domestic and imported supplies.

“The Ministry of Energy and Mineral Resources has also responded and provided support for the LNG procurement,” said Jamsaton.

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