Pupuk Kaltim secures long-term gas deal with Pertamina to ensure fertiliser supply

Pupuk Kalimantan Timur (Pupuk Kaltim) has signed a gas sales agreement with state-owned oil and gas giant Pertamina to secure a stable gas supply for fertiliser production from 2022 to 2028. This agreement reinforces Pupuk Kaltim's role in maintaining national food security by ensuring the availability of essential agricultural inputs.

Pupuk Kaltim, a subsidiary of Pupuk Indonesia, is the largest urea fertiliser producer in Southeast Asia. With a vision to be a world-class, sustainable leader in the fertiliser, chemical, and agribusiness industries, Pupuk Kaltim operates 13 plants, including five ammonia plants, five urea plants, and three NPK plants.

The deal with Pertamina will help maintain operational efficiency in Pupuk Kaltim's production facilities, safeguarding continuous production to meet both domestic and international demand, the company said in a statement.

"Pupuk Kaltim is committed to continuously improving efficiency and innovation in the production process, as an effort to support government programmes in achieving food self-sufficiency and energy security in a sustainable manner. Our commitment is to continue to maintain the trust given by all stakeholders, to carry out our duties as a domestic fertiliser producer as well as possible," said Pupuk Kaltim president director Budi Wahju Soesilo.

Alongside its industrial commitments, Pupuk Kaltim continues to empower micro, small, and medium enterprises (MSMEs). One of its supported businesses, Abon Jaya Mandiri, recently made its export debut by shipping 400 packs of tuna floss to the Philippines.

Don't miss: Grab spotlights Indonesian SME Restu Mande at World Economic Forum

This milestone is part of a larger initiative, where 22,000 Indonesian MSME products were officially dispatched in a ceremony attended by deputy minister for MSMEs Helvi Yuni Moraza and special presidential envoy for youth development and creative workers, Raffi Ahmad.

According to Moraza, this MSME export initiative is the realisation of a 2024 capacity building programme, with the exported products including food, fashion, and crafts, supported by the Indonesia Eximbank. The total transaction value from this export initiative has reached nearly IDR 1 billion (US$61,400).

Acting VP of corporate social responsibility at Pupuk Kaltim, Anggono Wijaya, highlighted that this export success reflects the company's dedication to empowering local resources and equipping MSMEs with the capabilities to compete globally.

"This business focuses on producing seafood-based tuna floss and operates under the Bina Sukses Bontang Cooperative, which nurtures multiple Pupuk Kaltim-supported MSMEs with export potential," Wijaya explained.

Related articles:
Indonesia's Lippo Group, Pertamina Retail join forces to transform customer experience
Pertamina NRE to acquire 20% stake in PH's Citicore Renewable Energy
Lippo General Insurance launches telematics app MyGo+ for safer driving