Pupuk Indonesia Niaga Accelerates Non-Fertilizer Business

February 12, 2024, 08.26 PM  | Reporter: Diki Mardiansyah
Pupuk Indonesia Niaga Accelerates Non-Fertilizer Business

ILUSTRASI. Workers load bags of urea at the China XLX Fertiliser Ltd. plant in Xinxiang, Henan province, China, on Saturday, May 29, 2010. China XLX Fertiliser Ltd. manufactures urea and compound fertilizer from coal. The company also produces methanol. Photographer: Doug Kanter/Bloomberg

STATE OWNED ENTERPRISE - JAKARTA. PT Pupuk Indonesia Niaga or PI Niaga, a member of the PT Pupuk Indonesia (Persero) group, continues to push for non-fertilizer business diversification.

Commercial & Operations Director of PI Niaga, Trudo Nainggolan, said that business diversification, especially those that can support and provide added value, is one of the company's strategies.

"The latest business diversification is carried out in the non-fertilizer unit, PI Niaga is developing clay products, one of the important raw materials in the manufacture of NPK fertilizers," said Trudo in his official statement, on Friday (9/2).

He explained this material serves as an adhesive between the elements of nitrogen, phosphorus, and potassium which make up NPK fertilizer. The clay raw material traded by PI Niaga comes from domestic companies in the South Sumatra and East Java regions.

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PI Niaga began exploring the clay business in 2022 by participating in the procurement tender at PI Group which produces NPK. Since then, PI Niaga has several times supplied clay to several subsidiaries of Pupuk Indonesia.

In 2023, PI Niaga supplied clay to Pusri Palembang. In 2024, PI Niaga again won the tender and shipped 3,960 tons of clay to Pusri Palembang.

Furthermore, 3,150 tons of clay will be sent by PI Niaga to Petrokimia Gresik, starting delivery in February 2024.

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"We are optimistic that the clay business will increase in the future by taking advantage of opportunities in fertilizer producers," said Trudo.

He added, that in addition to contributing to the company's revenue, the procurement of this clay product also forms a synergy between PI Group members in supporting national food security.

Editor: Syamsul Azhar
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