January 23, 2026 | 03:10 pm
TEMPO.CO, Jakarta - Seven new fertilizer production facilities will soon be built. The government plans to develop them to expand the manufacturing capacity of plants under the holding company Pupuk Indonesia, the state-owned enterprise that dominates Indonesia's fertilizer sector. Coordinating Minister for Food Affairs Zulkifli Hasan said the expansion projects were targeted for completion by 2029. "Within five years, Pupuk Indonesia can add seven new plants with a total investment of Rp50 trillion (about US$3 billion)," he said after a coordination meeting at his Jakarta office on Monday, January 12, 2026.
One of the new facilities is slated for the Fakfak Fertilizer Industrial Zone in West Papua, to be developed by Pupuk Kalimantan Timur (Pupuk Kaltim). The project has drawn scrutiny after an audit by the Supreme Audit Agency (BPK), released in December 2025, found the potential for state losses of at least Rp2.96 trillion (US$177 million) following the relocation of the plant to Fakfak Regency from its original site in Teluk Bintuni Regency, a major natural gas hub.
Additional facilities will be built at the Pupuk Sriwidjaja Palembang complex in South Sumatra; the Pupuk Iskandar Muda plant area in Aceh; a nitrogen phosphorus-potassium (NPK) plant in Cikampek, Karawang, West Java; the Petrokimia Gresik complex in East Java; and another site within the Pupuk Kaltim area. The government has prepared this plan since 2023. Going forward, it projects that urea production capacity can be maintained at 9.4 million tons and NPK output at around 1 million tons annually.
Such expansion would further strengthen Pupuk Indonesia's position as the dominant player in the national fertilizer market. The company currently operates five fertilizer plants with a total installed capacity of 14.65 million tons. The largest share comes from urea fertilizer, at 9.36 million tons, followed by NPK at around 4.52 million tons. The single largest urea producer is Pupuk Kaltim, with capacity reaching 3.43 million tons, while the largest NPK capacity belongs to Petrokimia Gresik, which can produce up to 3.12 million tons.
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