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Jakarta (ANTARA News) - PT Pupuk Sriwijaya (Pusri) is set to produce 7 million tons of urea fertilizer this year or three percent more than 6.8 million tons in 2009.

"Supported by efforts to increase our market share and price , and compensation paid by the government through its fertilizer subsidy program, PT Pusri hopes to be able to produce seven million tons of urea this year," the company`s president director, Dadang Heru Kodri, said here on Monday.

Dadang made the statement after witnessing the signing of a memorandum of understanding by PT Petrokimia Gresik (PGK) and Jordan Phosphate Mines Co. Ltd (JPMC) at the State Enterprises Ministry office.

PT Pusri was also optimistic that its production of NPK fertilizer would grow by 70 percent or 2.2 million tons from 1.3 million tons at present.

Dadang said availability of abundant gas supplies would support the increase in PT Pusri`s production capacity this year.

Meanwhile, PT Petrokimia Gresik (PGK) and Jordan Phosphate Mines Co. Ltd (JPMC) have reached an agreement to build a phosphate acid plant with a capacity of 200,000 tons per year in Gresik, East Java.

The memorandum of understanding on the project to cost US$200 million was signed in the presence of State Enterprises Minister Mustafa Abubakar and JPMC CEO Abdul Walid Khodri in Jakarta on Monday.

According to State Enterprises Minister Mustafa Abubakar, PT Petrokimia Gresik and JPMC had established a joint subsidiary, called Petro Jordan Abadi with each side controlling 50 percent of the shares.

PKG is a producer of phosphate-based fertilizers SP-36 and NPK, urea, ZA, and organic fertilizer.

The phosphate acid plant will be built in the first semester of this year. In 2012 PGK was expected to have a capacity to produce 2,840,000 tons of NPK and 500,000 tons of phosphate (SP-36), besides urea, ZA and organic fertilizer.

Meanwhile, PKG president director Arifin Tasrif said phosphate as a raw material would be imported from Jordan which has phosphate deposits of 2 billion metric tons.

He said national demand for NPK fertilizer until 2015 would reach 7 million tons while the production capacity of PT Petrokimia Gresik by 2012 would only be 2.2 million tons.

"In 2012, PT Petrokimia Gresik will be the biggest NPK producesr in Asia," Arifin Tasrif said, adding that to meet its maximum production capacity, part of of its need for phosphate was obtained from import.

State Enterprises Minister Mustafa Abubakar said the process to establish PGK and JPMC`s joint subsidiary company had happened since 2007, and following the conclusion of a feasibility study, the joint phosphate acid plant was expected to be in operation at the end of 2012.(*)

Editor: Jafar M Sidik

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