JAKARTA, July 12 (Xinhua) -- Embracing Jordanian Phospates Mines Corp (JPMC), Indonesian state-run fertilizer firm, Pusri Hodings, planned to construct five fertilizer plants in Indonesia, local media reported here on Monday. The plans would be materialized in jointly-operated plants, worth at least 100 million U.S. dollars.
Each of those five NPK (Nitrogen, Phosphate, Calium) fertilizer plants would produce 230,000 - 300,000 tons per annum, makes total production capacity of those plants reaches 1.25 - 1.5 million tons a year.
In the joint operation document, the Jordanian counterpart agrees to supply raw materials that consist of rock and phosporic acid for a long term.
Three of those plants will be erected in Palembang, South Sumatra, to be jointly operated by Pusri's Palembang-based PT Pupuk Sriwijaya.
The remaining two plants will be erected in Bontang, East Kalimantan. Those plants will be jointly-operated by Pusri's PT Pupuk Kaltim and PT Pupuk Kujang Cikampek.
"Their long-term raw material supply is expected to last up to 20 years period. Our Jordan counterpart had agreed with cooperation scheme we offered earlier. They already regarded us as their in-laws relatives," Pusri Holdings Director Dadang Heru Kodri was quoted by the Bisnis Indonesia as saying on the sidelines of MoU signing with JPMC recently.
He said that the plant construction is expected to commence this year.
According to Dadang, Pusri has allocated 600 billion rupiah ( about 66.3 million U.S. dollars) of contribution in its cooperation with JPMC, expecting to control more share than its Jordanian counterpart in the business.
He said that Indonesia suffers from fertilizer deficit at 4.5 million tons per year as total production of the country's fertilizer plants now reaches 3.5 million tons per year, while the demand has reached 8 million tons per year.
Each of those five NPK (Nitrogen, Phosphate, Calium) fertilizer plants would produce 230,000 - 300,000 tons per annum, makes total production capacity of those plants reaches 1.25 - 1.5 million tons a year.
In the joint operation document, the Jordanian counterpart agrees to supply raw materials that consist of rock and phosporic acid for a long term.
Three of those plants will be erected in Palembang, South Sumatra, to be jointly operated by Pusri's Palembang-based PT Pupuk Sriwijaya.
The remaining two plants will be erected in Bontang, East Kalimantan. Those plants will be jointly-operated by Pusri's PT Pupuk Kaltim and PT Pupuk Kujang Cikampek.
"Their long-term raw material supply is expected to last up to 20 years period. Our Jordan counterpart had agreed with cooperation scheme we offered earlier. They already regarded us as their in-laws relatives," Pusri Holdings Director Dadang Heru Kodri was quoted by the Bisnis Indonesia as saying on the sidelines of MoU signing with JPMC recently.
He said that the plant construction is expected to commence this year.
According to Dadang, Pusri has allocated 600 billion rupiah ( about 66.3 million U.S. dollars) of contribution in its cooperation with JPMC, expecting to control more share than its Jordanian counterpart in the business.
He said that Indonesia suffers from fertilizer deficit at 4.5 million tons per year as total production of the country's fertilizer plants now reaches 3.5 million tons per year, while the demand has reached 8 million tons per year.
