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Reading: Pupuk Indonesia eyes South Sumatra fertilizer plant in early 2027
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MacroHerald > Latest News > Markets > Commodities > Pupuk Indonesia eyes South Sumatra fertilizer plant in early 2027
Commodities

Pupuk Indonesia eyes South Sumatra fertilizer plant in early 2027

Özge Adıgüzel
Last updated: 11 November 2026 14:24
Özge Adıgüzel - Editor
8 hours ago
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The plant is part of PT Pupuk Indonesia’s revitalization agenda.

Contents
  • Prices and allocations
  • Eight plants over five years

Prices and allocations

Pupuk Indonesia has cut subsidized fertilizer prices at customer level by 20 percent, Zulkifli said. The 2027 subsidized allocation is unchanged from 2026, at 9.55 million tonnes for agriculture.

Fisheries will receive 300 thousand tonnes, bringing the total 2027 subsidized allocation to 9.85 million tonnes. Zulkifli said the government had changed the scheme from cost-plus to marked-to-market. The change lets the state buy raw materials earlier, he said. “The money is already there, so we buy first.”

Eight plants over five years

Pupuk Indonesia plans to build and revitalize eight plants over the next five years. The program includes the Amurea Pusri IIIB revitalization, Amurea Papua Barat, Amurea PIM III and an NPK plant.

It also covers Steam Granulation in Gresik, soda ash in Bontang and Gresik, and gas downstream methanol projects in Lhokseumawe and Bontang. The company traces its industrialization to the PUSRI plant, built in 1959.

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Pupuk Indonesia’s president director, Rahmad Pribadi, said the transformation with Danantara Indonesia had strengthened the company’s performance and competitiveness. It gives the company room to reinvest, he said.

Source: Pupuk Indonesia

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TAGGED:agriculturefertilizerindonesiapupuk indonesiasouth sumatrasubsidy

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ByÖzge Adıgüzel
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Özge Adıgüzel is an editor at MacroHerald. She holds a degree in Economics from the Faculty of Economics and Administrative Sciences at Niğde Ömer Halisdemir University.
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