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PT Pupuk Indonesia to produce competitive products

February 05 ,2016 Jakarta (ANTARA News) - State fertilizer company PT Pupuk Indonesia is making every effort to produce competitive products by revitalizing its old plants to improve efficiency in gas consumption.

Company President Director Aas Asikin Idat has stated that the use of gas in high quantities coupled with the strengthening of the dollar was becoming increasingly burdensome for the company.

"Therefore, the utilization of gas should be reduced through the implementation of new technology since the old plants used gas at an average rate of 35 million British thermal units (mmBtu) per ton of fertilizer, but following revitalization, gas utilization can be reduced to 24 mmBtu per ton," Asikin remarked in Palembang, South Sumatra, on Wednesday (3/2).

He noted that in future, the company will be left with no other option but to revitalize the old plants by using new technology to produce fertilizers at competitive prices.

According to Asikin, two fertilizer companies such as PT Pusri in Palembang will complete the revitalization of Pusri 2B this year similar to what PT Pupuk Kaltim had done last year.

"In 2016, PT Pusri has planned to make the Pusri 2B factory operational in March this year," Asikin remarked, adding that the revitalization of the old plants was aimed at maintaining the production capability as PT Pupuk Indonesia had made assurance to contribute to ensuring the nations food security.

In the meantime, PT Pusris Public Relations Manager, Sulfa Ghani, noted that the revitalization project of Pusri 2B, one of its four oldest factories, uses new technology that is environmentally friendly and is efficient in the use of gas.

Ghani stated in Palembang that the revitalization project of Pusri 2B has now been almost completed and will soon become operational.

He said the initial stage of operation has been going well, and if no significant obstacle is encountered, then Pusri 2B, the new urea factory, can be operated as soon as possible. Pusri 2B will replace the oldest Pusri 2, which was built in 1974.

Viewing the good progress of the construction activities, Ghani expressed optimism that the new Pusri 2B can become operational in March this year.

He pointed out that PT Pusri has four factories, with a total annual production capacity of 2,262 million tons of fertilizer in the past, but with time, their condition has deteriorated, and they have not been able to realize their full potential for the last several years.

He noted that the four factories on an average have been operational for over 35 years, whereas ideally, the maximum lifespan of a fertilizer factory is 20 years.

"All fertilizer plants of PT Pusri in Palembang are in an alarming state as they are very old. Pusri 1B, built in 1994, is relatively younger," he said, adding that to boost the production of urea and ammonia, the old plants will be gradually revitalized.

The companys President Director Musthofa recently stated in Palembang that the revitalization process was being carried out by a consortium of PT Rekayasa Industri and Toyo Engineering Corporation at a cost of Rp7.4 trillion.

Ghani explained that PT Pusri has continued to demonstrate its commitment to optimizing its Corporate Social Responsibility (CSR).

Established in the South Sumatra provincial city of Palembang on December 24, 1959, PT Pusri has succeeded in its business operations, with its main mission being to support the governments policies and programs related to the nations economy and development sector, particularly in the fertilizer industry and other agricultural products.

For 56 years, PT Pusri has rendered significant contribution for the development of the national fertilizer industry, food security, and prosperity.

Further, he remarked that the company has prepared three programs to optimize its CSR: to provide guidance to the public, to improve the environment, and to protect and preserve the environmental ecosystem in the business units of the company.

To execute and realize the programs, the company has formed a partnership with stakeholders, such as the employees, suppliers, distributors, customers, farmers, people in the neighborhood, and the government.

Ghani explained that the CSR programs will be implemented through a design based on the spirit of mutual progress between the company and all stakeholders.

"We believe that the companys contribution is all that we have dreamed about in the area of work and to evolve for mutually sustainable progress," he emphasized.

PT Pusri Production Director Johan Safri has said the new Pusri 2B factory will help enhance the companys production of urea fertilizer from 2.1 million tons to 2.8 million tons per year.

He said the production target would be reached in the first year of the new factory starting its operations.

"After Pusri 2B becomes fully operational, the production target of 2.8 million tons would be reached right away. An increase of 750 thousand tons in production will be achieved," Johan emphasized.

In 2014, Pusri had produced 2.10 million tons of urea fertilizer, and in 2015, the production target was set only slightly higher at 2.15 million tons.

"If the production is to be increased significantly, a new factory has to be built as the existing factories are already operating at full capacity," Johan pointed out.

He affirmed that Pusri 2B has been designed to have an installed production capacity of two thousand tons of ammonia per day and 2,750 tons of urea fertilizer per day.