Riffrag Business & Finance Report

State Enterprises Minister, Mustafa Abubakar (left), witnessed the signing of the cooperation between the CEO Jordan Phospate Mines Co.. Ltd. (JPMC), Walid Kurdi (right), and Managing Director of PT Petrokimia Gresik (PKG), Arifin Tasrif (center) in Jakarta. (AFP / Ujang Zaelani)
Jakarta (ANTARA News) – The PT Petrokimia Gresik (PKG) and Jordan Phospate Mines Co.. Ltd. (JPMC) agreed to build a phosphoric acid plant in Gresik capacity of 200,000 tons per year with an investment of 200 million U.S. dollars.

The signing of cooperation carried out in the Office of the Ministry of State Owned Enterprises, Jakarta, Monday, Minister of SOEs directly viewed Mustafa Abubakar, CEO of JPMC Walid Abdul Khodri, and Director of fertilizer SOEs.

Mutafa According to Abubakar, the two parties form a joint venture subsidiary of Eternal Petro Jordan, with the composition of their respective shares of 50 percent, while the factory to be built from the end of the first semester of this year.

PKG produces phosphate-based fertilizers (SP-36) and NPK fertilizer (Phonska and Kebomas), in addition to producing urea and ZA as well as organic fertilizer.

In 2012 PKG hope 2,840,000 tons has a capacity of 500,000 tons of NPK and Phospate (SP-36), in addition to producing urea and ZA as well as organic fertilizer.

PKG CEO said Arifin Tasrif phosphate raw material will be met from Jordan, which now has reserves of up to 2 billion metric tons.

He explained that the national needs of NPK fertilizer until 2015 to reach 7 million tons, while production capacity in 2012 new PKG can be increased to 2.2 million tons.

“In the year 2012 NPK Petro became the largest producer in Asia,” said Arifin.

So far, companies still need additional phosphoric acid material which partially met from imports.

Meanwhile, Mustafa Abubakar explained, the process of forming this joint venture has been made since 2007 and in line with the completion of the study, the joint venture is operating at the end of 2012.