Decree for Fertilizer Revitalization Ready

VIVAnews - Fertilizer factor revitalization program will be further regulated in a Presidential Instruction (Inpres). The plan is one of Indonesia Unite Cabinet Part 2’s 100-day programs aside from the sugar factory revitalization program.

Industry Minister MS Hidayat said the draft of the instruction has been finalized by the Coordinating Ministry for the Economy.

“It just needs the President’s signature. It’ll be probably be signed on February 1,” the Minister said while attending Feed the World national seminar and exhibition at Balai Sidang Senayan in Jakarta on Friday, January 29.

The instruction will mostly govern gas supply warrant for fertilizer factories that will be revitalized and built. Fertilizer industry has been relying on gas supplies in conducting expansions.

Hidayat also said that until the end of the year, negotiations on gas supplies for four state-owned fertilizer factories will reach its end. The factories are Pupuk Sriwidjaja, Pupuk Kujang, Pupuk Iskandar Muda and Petrokimia Gresik.

The factories are also planning on building new plants and revitalizing the old ones. “Without the revitalization, we won’t be able to achieve food resistance,” he said.

Hidayat also suggested establishing 75 percent local content level requirement (TKDN) in machine procurement. There will also be 5 to 10 percent tolerance in imported and local machine price. “They will obey the rule because most of the companies in the program are state-owned enterprises (BUMN),” he said.

Besides overseeing gas supply warrant in fertilizer factory revitalization, the instruction will also govern gas supplies for ceramic industry. “Gas supplies for ceramic industry from the State Gas Company (PGN) will also be regulated,” Hidayat said.

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Translated by: Nataya Ermanti

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29 Maret 2024