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Pupuk Indonesia fulfills 100% mandate for subsidized fertilizer distribution

Published by , Editorial Assistant
World Fertilizer,

In celebration of its 12th anniversary, PT Pupuk Indonesia (Persero) reaffirms its commitment to enhancing agricultural productivity and ensuring food security through various innovations.

In line with this commitment, Pupuk Indonesia has successfully met the government's 100 % target by distributing 6.19 million t of subsidized fertilizer to farmers. This positive performance was achieved by the company amidst the complex global challenges in 2023, such as climate change and geopolitical conflicts affecting fertilizer commodity prices.

Rahmad Pribadi, President Director of Pupuk Indonesia, stated during an iftar event with the media in Jakarta on March 18, 2024, "Pupuk Indonesia not only survived but also thrived in 2023. This year, we will remain steadfast in our commitment to enhancing agricultural productivity and ensuring food security through innovation and best performance."

In 2023, Pupuk Indonesia realized a production output of 18.8 million t, consisting of 11.6 million t of fertilizer and 7.1 million t of non-fertilizer products. Various efforts were made to ensure the smooth and targeted distribution of fertilizer. This included the digitisation of the fertilizer redemption process using the I-Pubers (integrated subsidized fertilizer) application and collaboration with stakeholders.

The I-Pubers application is a result of collaboration between Pupuk Indonesia and the Ministry of Agriculture. This application is aimed at facilitating farmers in the subsidized fertilizer redemption process by implementing integrated data in distributor partners (kiosks) between the e-allocation subsidised recipient list and the fertilizer stock data available at Pupuk Indonesia. As of February 1, 2024, the implementation of I-Pubers has reached 100 % nationwide and is available at more than 27 000 kiosks across the country.

During this occasion, Rahmad also emphasised the importance of nitrogen-based gas fertilizers in increasing the productivity of food crops, as they can boost productivity by up to 56 %. Gas-based fertilizers such as Urea and NPK are the most needed by farmers, so the availability and affordability of natural gas prices will impact national food security. This year, as of March 11, 2024, Pupuk Indonesia has also prepared a stock of subsidised and non-subsidised fertilizers amounting to 1.78 million t.

"With the amount of subsidised and non-subsidised fertilizer stock that we have prepared, we hope to support Indonesian agricultural productivity and bolster national food security. We also continue to implement the MAKMUR programme, which has yielded outstanding results, covering an area of 358 885 hectares or 130 % of the target area of 275 000 hectares. The number of farmers involved has reached 107 642 farmers or 108 % of the target of 100 000 farmers. With great determination, we believe these efforts will help maintain national food security and build food self-sufficiency for our country," Rahmad explained.

He also revealed that Pupuk Indonesia plans to target the MAKMUR programme more extensively in the future to promote sustainable self-reliance for Indonesian farmers.

In terms of business development, Pupuk Indonesia has also implemented several strategic initiatives, including the inauguration of the NPK fertilizer plant at Pupuk Iskandar Muda (PIM), the construction of the Pupuk Industrial Zone in Fakfak to expand fertilizer coverage in East Indonesia, and the project to build the Pupuk Sriwidjaja (Pusri) 3B fertilizer plant aimed at replacing aging fertilizer plants.

In its business practices, Pupuk Indonesia continues to uphold ESG (environment, social, governance) principles. This is evident through its commitment to decarbonizing existing business and simultaneously developing new environmentally friendly businesses, such as clean ammonia. As a major player in ammonia production in the Asia-Pacific, Middle East, and North Africa regions, Pupuk Indonesia has the potential to become a center for Carbon Capture and Storage (CCS).

Through the development of the clean ammonia industry, Pupuk Indonesia strives to lead the transition towards more environmentally friendly practices in the fertilizer and petrochemical sectors. Last year, the company successfully reduced carbon emissions by 1.55 million t, surpassing the previously set target of 1.21 million t. Thus, Pupuk Indonesia continues to affirm its role as a pioneer in sustainable and environmentally friendly fertilizer industry.

"We will continue to strive to make a positive and sustainable impact on the fertilizer and petrochemical industries by developing the clean ammonia industry. God willing, these efforts will yield good results in creating a fertile and sustainable future for our nation," Rahmad concluded.

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