The Fertilizer Industry in Papua is a Grand Strategy to Strengthen National Food Sovereignty
The government under President Jokowi continues to be committed to advancing Papua through several sectors. Most recently, President Jokowi accompanied by a number of Ministers as well as the Main Director of PT Pupuk Indonesia and the Main Director of PT Pupuk Kaltim inaugurated the Groundbreaking for the construction of the National Strategic Project (PSN) for the Pupuk Industrial Area in Fakfak, West Papua. The first fertilizer industrial area in the last 40 years will produce 1,150,000 tons of urea fertilizer per year and 850,000 tons of ammonia per year. The construction of a fertilizer industrial area in Papua will further strengthen Indonesia’s position as the largest fertilizer provider in Asia Pacific, the Middle East and North Africa.
The inclusion of PSN certainly shows President Jokowi’s seriousness in improving the welfare of the people in Papua. This PSN will also be able to absorb local workers and drive the economy in the region. President Jokowi said that developing the fertilizer industry in the Papua region was part of Indonesia’s strategy to uphold food sovereignty. Food sovereignty must be achieved so that Indonesia can be independent in meeting domestic food needs and not depend on other countries where currently conflicts in the Middle East and Europe are disrupting national food and energy security.
President Jokowi explained that food matters are not only about meeting the need for rice, but also about increasing the productivity of the crops planted. Therefore, this is a very important part because fertilizer will increase the productivity of the plants we plant, be it rice, be it sugar cane, be it corn, all of them need fertilizer.
President Director of Pupuk Indonesia, Rahmad Pribadi said that the PSN, which was mandated by the government to Pupuk Indonesia, was a commitment from both parties to support agricultural productivity and maintain national resilience. This historic momentum is proof of our commitment to support the government’s PSN initiative. Pupuk Indonesia as the parent company consistently fully supports Pupuk Kaltim in making this PSN a success.
He explained that the Fakfak Integrated Industrial Zone is the sixth Fertilizer Industrial Zone in Indonesia and is the first to be built in the last 40 years. The West Papua Integrated Industrial Zone is an important part of creating a sustainable agricultural ecosystem throughout Indonesia, especially in Eastern Indonesia. Rahmad also said that his party was optimistic that the existence of this fertilizer factory would support food self-sufficiency and support farmers to prosper with Indonesia.
Meanwhile, the Main Director of Pupuk Kaltim, Budi Wahju Soesilo, said that the establishment of the Integrated Industrial Zone in Fakfak strengthens Pupuk Indonesia’s position as the largest fertilizer producer in Asia Pacific, the Middle East and North Africa. He continued that this establishment was also a strategic response to growing market demand, which is projected to reach 6-7 million tons by 2030.
According to him, with an investment value of more than US$ 1 billion, this project is expected to have a new factory production capacity per year, which can reach 1.15 million tons for urea fertilizer and 825 thousand tons for ammonia. It is also hoped that this project targets fulfilling around 70 to 80 percent or around 4.5 to 5 million tons of national needs when it is fully operational in 2028. Furthermore, Soesilo revealed that Pupuk Kaltim has prepared a number of facilities and infrastructure to start the process of developing an Integrated Industrial Area in Fakfak, West Papua.
Previously, Pupuk Kaltim had ensured a stable gas supply and had officially signed a Natural Gas Sales and Purchase Agreement (PJBG) with Genting Oil Kasuri Pte. Ltd. He also hopes that this PSN project can be completed and will start operating on Pupuk Kaltim’s 50th anniversary, in 2027.
The big concern of President Jokowi’s government in Papua is the new hope for equitable economic growth and realizing prosperity in the land of Cenderawasih. The start of PSN construction in Papua also indicates that investors are starting to look at the easternmost region of Indonesia. As a result, more job opportunities will open and local communities will be absorbed so that Papua’s economy will improve.
By involving the active participation of the Papuan people in the national development process, the government can ensure that Papua’s transformation not only creates economic growth but also builds a solid foundation for sustainability, justice and harmony in the region.
There are many strategic programs, whether at the national level or on a regional scale, which continue to be intensified and implemented with full commitment by the government. To be able to overcome the problem of disparities between regions, the government also has a strong commitment to accelerating development in the eastern part of Indonesia, namely Papua.