Press Statement of President of the Republic of Indonesia after the Inauguration of the Ammonium Nitrate Factory, in Bontang City, East Kalimantan Province, February 29, 2024
President of the Republic of Indonesia (Joko Widodo)
The ammonium nitrate factory will stimulate our fertilizer production sovereignty, so we don’t need to import excessive amounts of raw materials. Thus, whenever there is a problem in the supplier countries, there won’t be a problem here. Take the Ukraine war as an example, it has caused problems for every country, especially fertilizer producers. For that reason, once again I highly appreciate the development of ammonium nitrate industry in East Kalimantan. We hope it will make us more independent in domestically producing fertilizers.
Journalist
Sir, how optimistic are you that this will affect our agricultural production?
President of the Republic of Indonesia (Joko Widodo)
Well, when our fertilizer production increases, the distribution of it to farmers will also become more certain: how many tons will be sent to farmers, the ministry can also regulate the best time for farmers to use the fertilizer. So, the planting season is not delayed because of fertilizer. We hope that our production will not decrease because of the lack of fertilizer. PT Kaltim Ammonium Nitrate has produced 8 percent of our national demand, contributing to the previously 21 percent. The remaining 13 percent hopefully can be met, so that 100 percent of the raw material for NPK is produced domestically. This will ensure more certainty, ensuring that we completely produce fertilizer domestically.
Journalist
Sir, I’ve heard there will be additional subsidy for [farmers]?
President of the Republic of Indonesia (Joko Widodo)
The subsidy was only for 4.7 [million tons], and we will aim for 9.5 million tons, so there will be certainty that farmers will get subsidized fertilizer. We have discussed about it in the plenary cabinet meeting and we have agreed that it will be executed this year.
Journalist
Sir, about the crop failure in Demak, is it because of the broken embankment?
President of the Republic of Indonesia (Joko Widodo)
Crop failures occur every year, some are caused by flood, some are due to long dry season, some are because of pests. The most important thing is that it should never significantly reduce our annual production.
Journalist
Sir, about the defense sector, will this ammonium factory also contribute to the defense sector?
President of the Republic of Indonesia (Joko Widodo)
I forgot to mention that ammonium nitrate is also a raw material for our defense industry, especially for explosives. If we have the raw material, we don’t rely on other countries. We only need to manufacture propellants, to produce it domestically.
Journalist
Thank you, sir.
(AY/MMB)