ROLE OF FERTILIZER
INDUSTRY
IN INDONESIA
Arifin Tasrif
President Director of PT Pupuk Indonesia Holding Company
Food Consumption in ASEAN
No
Country
Population – 2013
(Million Peoples)
Rice
Consumption
(kg/capita)
1
Indonesia
250
113
2
Philipines
98
100
3
Malaysia
30
80
4
Singapore
5
-
5
Thailand
67
90
6
Myanmar
53
190
7
Brunei
0,4
80
8
Vietnam
90
80
9
Laos
7
179
10
Kamboja
15
-
11
Timor Leste
1
-
2
Highlight Agriculture In Indonesia
 Agriculture is the most important livelihood for the majority of the Indonesia
people
 As staple food, rice is main agriculture product
 Major rice producer is Java due to the high productivity and harvested area
compared to the other islands
 Government is targetting surplus of rice production in 3 years ahead starting from
2015.
 More than 80 thousands ha agriculture land converted to non agriculture use per
year.
 In 2050, Indonesia population will be 321 million peoples and demand for food will
increase.
 Other agriculture production is maize, soybeans, and sugar
3
Food Production Enhancement Program
1. INTENSIFICATION PROGRAM
•
Providing land in forest areas with intercropping for food
•
Providing and distributing production facility and distributing
food
•
Procurement and management of government’s paddy or rice
reserves
•
Providing supervision for farmers
2. EXTENSIFICATION PROGRAM
Extensification of unutilized land and development of food estate in
East Indonesia (Papua).
4
Paddy Productivity by Province
INDONESIA PRODUCTIVITY : 5,13 TON/HA
Productivity:
: > 5.5 ton/ha
: > 5 – 5.5 ton/ha
: > 4.5 – 5 ton/ha
: > 4 – 4.5 ton/ha
: > 3.5 – 4 ton/ha
: > 3 – 3.5 ton/ha
: < 3 ton/ha
Harvested Area Total Production of Paddy : 13,77 million ha
: 70,6 million ton
5
Agriculture in Different Countries
Country
China
India
Japan
S. Korea
Taiwan
Thailand
Vietnam
Myanmar
Cambodia
Indonesia
Philippines
Malaysia
Production Number of Volume Number of Fertilizer GDP Per Capita Agricultural Harvested Area Productivity (Paddy base) Populations Consumption [2012, USD]
Holdings [million Ha]
[Ton/Ha]
[2013, [million people]
[kg/ha]
[million people]
thousand ton]
6,078
1,515
46,530
22,590
20,386
5,390
1,753
876
926
3,591
2,612
10,387
203,290
159,200
10,758
5,632
1,725
38,788
44,039
28,000
9,340
71,280
18,439
2,627
1,393.8
1,267.0
126.0
49.0
23.0
67.2
92.5
53.7
15.4
252.8
100.1
30.2
200.6
137.8
3.1
3.3
0.8
5.8
10.7
5.4
N/A
24.9
4.8
0.5
647.6
163.7
259.1
481.0
N/A
153.2
297.1
15.7
16.6
194.8
113.5
1,570.7
30.5
43.5
1.6
0.8
0.3
12.4
7.9
7.5
3.1
13.8
4.7
0.7
6.7
3.7
6.7
6.8
6.6
3.1
5.6
3.7
3.0
5.2
3.9
3.8
Source : FAO, IMF, Worldbank, USDA
6
The Influence of Fertilizer on Increasing Paddy Production (Yield)
72,000
5,000
70,000
4,500
68,000
4,000
66,000
3,500
64,000
3,000
62,000
2,500
60,000
2,000
58,000
1,500
56,000
54,000
1,000
52,000
500
50,000
0
2003
2004
2005
Paddy Production
Produksi
Padi
2006
2007
2008
Urea Consumption
Konsumsi
Urea
2009
2010
2011
NPK Consumption
Konsumsi
NPK
7
2012
2013
2014
Organic Consumption
Konsumsi
Organik
Konsumsi
Pupuk (000
Ton)
Fertilizer Consumption
(000
ton)
Paddy Production
(000 ton)
Produksi
Padi (000
Ton)
2.86 % pa
0.38 % pa
34.49 % pa
36.24 % pa
Distribution Facilities
Distribution Center
Warehouse, Distributor & Kiosk
PIHC’s Vessel
Rented Vessel
Voyage Charter
Container
Bagging Storage
Truck
: 7 units
: 8 units
: 238 trip
: 7.284 trip container
: 4 units
: 15.382 units
Distributor Kiosk
Plant Storage Capacity Distribution Center (14 units)
Line III Warehouses (555 unit)
Total Warehouse Capacity 8
: 2.350
: 50.178
: 491.100 ton
: 428.400 ton
: 2.348.280 ton
: 3.267.780 ton
Number of population
(million peoples)
Number of Rice, Corn & Soy Beans
(000 ton)
Population Growth & Food Demand
9
Fertilizer Demand
Million
According to IRRI’s research, the application of P & K increases yield by
17% on average.
In 2050, Urea will be needed in 5,4 million tons and NPK 6,6 million tons
10
Revitalization Program
No.
Project Development
Investment
Amount
Constructed
Period
A. Urea
1.
Kaltim 5 (PKT)
US$ 720 Million
2011 - 2015
2.
Pusri II B (PSP)
US$ 657 Million
2013 - 2016
3.
Amurea II (PKG)
US$ 661 Million
2014 - 2017
4.
Kujang 1C (PKC)
US$ 909 Million
2016 - 2020
5.
Urea Bintuni, Papua
US$ 2,6 Billion
2016 - 2020
1.
NPK Fused (PSP)
US$ 12 Million
2013 – 2015
2.
NPK Granular II (PKC)
US$ 14,3 Million
2014 - 2015
3.
NPK Chemical Kalimantan (PKT)
US$ 164 Million
2015 - 2018
4.
NPK Chemical Sumatera (PSP/PIM)
US$ 125 Million
2015 - 2018
5.
Phonska V (PKG)
US$ 35 Million
2015 - 2017
6.
NPK Chemical Bintuni, Papua
US$ 213 Million
2016-2020
B. NPK
C. Phosphoric Acid
1.
Petro Jordan Abadi (PKG)
US$ 214 Million
2012 - 2014
2.
Revamp Phosphoric Acid (PKG)
US$ 203 Million
2012 - 2015
3.
Kaltim Jordan Abadi (PKT)
US$ 269 Million
2015 - 2018
4.
Aceh Jordan Abadi (PSP)
US$ 246 Million
2015 - 2018
5
PA/SA Bintuni, Papua
US$ 350 Million
2016 - 2020
11
Revitalization Program
• PT Aceh Jordan Abadi (“AJA”)
• KJA
Capacity: 200.000 MTPY (PA), 600.000 MTPY (SA) Project Value: $ 246 Million
Period: 2015‐2018
•• NPK Chemical
Capacity: NH3 : 825.000 MTPY
Urea : 1 .155.000 MTPY
Project Value: $ 720 Million
Deadline: April 2015
• NPK Chemical
Notes
• Revamp PIM II
• Revamp EnergiKaltim2
Urea/NPK Bintuni Project
2
4
23
21
10
18
• PusriIIB
• NPK Fused
Capacity: 100.000 MTPY
Project Value: $ 12 Million
Period: 2014‐2015
19
8
25
27
7
30
20
6
26
31
9
Revamp Amurea I
11
12
13
15
16
17
29
28
• KujangI C
• Revamp PusriIII/IV
Capacity: 100.000 MTPY
Project Value: Rp 172
billion
Period : 2014-2015
32
33
5
14
NPK Granular II
22
NH3 : 1.320.000 MTPY
Urea : 2.300.000 MTPY
NPK : 1.000.000 MTPY
24
3
Capacity: NH3 : 660.000MTPY
Urea : 907.500 MTPY Project Value: $ 657 Million
Period: 2013‐2016
:
Projects under construction
Projects under development
Project Plans
Capacity:
2 x 500.000 MTPY
Project Value: $ 164 Million
Period: 2015‐2018
Project Value: USD 124,7
Period: 2015‐2018 1
• Kaltim5
Capacity: 200.000 MTPY (PA), 600.000 MTPY (SA) Project Value: $ 269 Million
Period: 2015‐2018
• Revamp KujangIB
• NPK Granular III & IV
Capacity:
NH3: 660.000 MTPY
Urea: 1,155,000 MTPY
: $ 909 ProjectValue:
Million
Period : 2016‐2020
•
•
Future Food
Production
Amurea II
Capacity NH3 660.000 MTPY
Urea 570.000 MTPY
Project Value US$ 661 Million
Period 2014‐2017
Petro Jordan Abadi
Capacity PA : 200.000 MTPY, SA 600.000 MTPY
Project Value US$ 214 Million
Period: 2012‐2014
•
•
Revamp PA
Capacity PA : 200.000 MTPY, SA 600.000 MTPY
Project Value US$ 203 Million
Period 2012‐2015
Phonska V
Capacity 600.000 MTPY
Project Value: Rp 406 Billion
Period: 2015‐2017
Fertilizer Production Capacity
Product
Company
Location
PT Petrokimia Gresik
Gresik, East Java
PT Pupuk Kujang
Cikampek, West Java
PT Pupuk Kalimantan Timur Bontang, East Kalimantan
Urea
PT Pupuk Iskandar Muda Lhokseumawe, NAD
PT Pupuk Sriwidjaja Palembang Palembang, South Sumatera
PT PI Teluk Bintuni
Bintuni, Papua
Total Production Capacity for Urea
SP‐36 PT Petrokimia Gresik
Gresik, East Java
PT Petrokimia Gresik
Gresik, East Java
PT Pupuk Kujang
Cikampek, West Java
PT Pupuk Kalimantan Timur
Bontang, East Kalimantan
NPK
Palembang, South Sumatera
PT Pupuk Sriwidjaja Palembang
Lhokseumawe, NAD
PT PI Teluk Bintuni
Bintuni, Papua
Total Production Capacity for NPK
Total Production Capacity PT Pupuk Indonesia (Persero)
Production Capacity (Ton/Year)
After Current (2014)
Revitalization
460,000 1,030,000 1,140,000 1,725,000 2,980,000 3,430,000 1,140,000 1,140,000 2,262,000 2,617,500 2,300,000 7,982,000 12,242,500 500,000 ‐ 2,620,000 3,220,000 100,000 400,000 200,000 1,200,000 ‐ 100,000 ‐ 1,000,000 ‐ 1,000,000 2,920,000 6,920,000 11,402,000 19,162,500 13
World Fertilizer Producer’s Revenue
No
Company
Location
Revenue
(USD Million)
Canada
16,686
Norwegia
14,063
AS
11,107
Canada
7,927
1
Agrium
2
Yara International ASA
3
Mosaic
4
Potashcorp
5
Sinofert
China
6,728
6
Israel Chemicals
Israel
6,672
7
EuroChem Mineral Chemical Co.
Rusia
5,174
8
PIHC Group
Indonesia
4,459
9
Uralkali
Rusia
3,949
10
Tata Chemicals
India
2,130
Annual Report 2012
14
14
Fertilizer Market Export
INDONESIA
15
Joint Venture Experiences with Other Countries
 Joint Venture with Jordan Phospate Mining Co. Ltd provide phosporic
acid to fulfill raw material need for compund fertilizer. The plant will be
constructed in Gresik (PJA), East Kalimantan (KJA) and Aceh (AJA) with
the capacity production 200.000 ton per year.
 Asean Aceh Fertilizer (AAF) Founded on 12 April 1979, the Company is
Located In Lhoseumawe, Nangroe Aceh Darussalam. The design capacity
of Plant is 600.000 tons of urea per year. AAF is owned by PT Pupuk
Indonesia (Persero) representing Indonesia, Petronas representing
Malaysia, National Fertilizer Corporation of Philipines, The Ministry of
Finance of Kingdom of Thailand, Temasek Holding (Pte) Ltd. of
Singapores
 Asean Bintulu Fertilizer (ABF) was established on December 6, 1980
Located in Sarawak, Bintulu. It has capacity of 600.000 ton per annum
urea. The company is a joint venture of five Asean countries namely
Malaysia, Thailand, Indonesia, Philippines and Singapores.
16
Cooperation between Asia Africa Countries
 Food is very important to our lives, as basic human needs is
strongly related to demand due to increasing population
 Strategic cooperation amongst Asia Africa countries is very
important
to
strengthen
the
agriculture
sector.
The
cooperation amongst Asia Africa countries is intended to
unify resources, expertise and market.
17
18