Kujang to Build Rp6.8 tln Fertilizer Plant

09 January, 2012 | Source: The Jakarta Post

Jakarta (ANTARA News) - State fertilizer company PT Pupuk Kujang is planning to build another unit of its plants called Kujang IC at a cost of Rp6.8 trillion (US$800 million), its president director said.

"The plant Kujang IC will replace the plant Kujang IA which is more than 30 years old," Achmad Tossin said on the sidelines of a function marking the signing of an agreement on refinancing Kujang`s debts to Japan Bank for International Cooperation (JBIC) here on Wednesday.

The plant IC is scheduled to start operating in 2017, he said.

The plant would have a production capacity of 900 thousand to 1 million tons, or higher than the combined production capacity of the plants Kujang IA and IB which reached 570 thousand tons per year, he said.

Feasibility and technical studies for the construction of the plant IC had been completed, he said adding the company was now waiting for the results of a financial study to determine the financing aspect of the project.

"Nearly 70 percent of the financing source will likely come from banking loans and the remaining 30 percent from the company`s internal cash," he said.

But he added that the financing of the project would depend on the company`s debt-to-equity ratio. Therefore, domestic banks` role in the development of the fertilizer industry was badly needed.

The plant IC would be built in Cepu, Central Java, so that it would be close to the Block Cepu gas source, he said.

"It is most likely the plant will be built in Cepu but it can also be built in Bojonegoro (East Java), depending on the decision of Pusri Holding because Kujang is a subsidiary of Pusri Holding," he said.

Kujang operations director Yuni Suryanri said once the construction of the plant IC was completed the company would have a combined production capacity of 1.1 million to 1.4 million tons per year. The plants IA and IB now have a production capacity of 570 thousand tons each.

 

President Joko Widodo (Jokowi) received a courtesy call from Hungarian Prime Minister Viktor Orban to discuss several areas of bilateral cooperation including the supply of clean water in several regions of Indonesia. "I appreciate the cooperation in clean water supply. The project was completed in December 2019 and was carried out in 36 regions of 12 provinces in Indonesia," President Jokowi said in his address during the bilateral meeting with Prime Minister Viktor Orban at the Merdeka Palace in Jakarta Thursday.
ASEAN’s top diplomats have reaffirmed the need to respect international law amid concerns over tensions in the South China Sea, where Chinese vessels have repeatedly violated other countries’ sovereign rights.
President Joko Widodo (Jokowi) will shed light on the topic of sustainable city in connection with the development of Indonesia′s new capital city in his key speech at the Abu Dhabi Sustainability Week (ADSW) 2020.
The Consumer Price Index (CPI) inflation in 2019 stood at 2.72 percent (yoy), which is within the Bank Indonesia′s target corridor for the last five consecutive years, the figure of which in 2019 is 3.5 percent ±1 percent.
The National Development Planning Ministry/National Development Planning Agency (Bappenas) highlighted numerous strategies to accomplish the average national economic growth of six percent in the National Medium-Term Development Plan 2020-2024.
The Asian Development Bank (ADB) decided to maintain its forecast for Indonesia′s economic growth at 5.1 percent in 2019 and 5.2 percent next year despite an expected slowdown in the Asian economy.
Address: 1068 Budapest, Városligeti fasor 26. | MAP |
Phone: (+36-1) 413 3800 Fax: (+36-1) 322 8669
E-mail: embassy@indonesianembassy.hu