PKT to Boost Production for Global Demand and Food Security

Pupuk Kaltim, the Indonesian fertilizer company, is gearing up to increase its production in response to global market opportunities and to support national food security. As a subsidiary of the state-owned enterprise Pupuk Indonesia, the company aims to produce 2.76 million tons of ammonia, 3.39 million tons of urea, and 250 thousand tons of NPK by 2023.

According to Rahmad Pribadi, CEO of Pupuk Kaltim, this production goal aims to meet approximately 63% of the national demand for urea fertilizer. If achieved, this production output will position Pupuk Kaltim as the fourth-largest urea producer in the Asia-Pacific region.

To achieve this, Pupuk Kaltim's growth strategy focuses on operational and supply chain excellence, diversification, and geographical expansion. This includes reducing production costs, improving the quality and quantity of production, and distributing it efficiently through digitalization and good corporate governance.

With this system in place, Pupuk Kaltim aims to capture approximately 6% of the urea market share, 20% of the ammonia market, and 2% of the NPK market in Southeast Asia by 2030.

Despite the global economic slowdown caused by rising inflation in 2022, Pupuk Kaltim remains optimistic about market opportunities. According to the International Fertilizer Association (IFA), the global fertilizer market is expected to grow in 2023, with nitrogen-based fertilizer projected to grow by 2.2%, phosphate-based fertilizer by 4.4%, and potash-based fertilizer by 4.2%.

Additionally, the ongoing conflict between Russia and Ukraine has disrupted the global fertilizer market, creating an opportunity for Pupuk Kaltim to expand its operations globally.

"We are at our best momentum to continue growing. Opportunities in the global market and the government's trust in us to run national strategic projects will be our foundation to innovate, adapt, and improve performance. We will increase our production to respond to the global market and support national food security," said Rahmad.

As Pupuk Kaltim sets its sights on expanding into new markets, the company's commitment to sustainability and good corporate governance will undoubtedly play a key role in its success.