Indonesian state-owned enterprise, PT Pupuk Indonesia (Persero), and Fertiglobe, the nitrogen fertilizer joint venture of Netherlands-based OCI NV and Abu Dhabi National Oil Co. (ADNOC), have signed a Memorandum of Understanding (MOU) that will allow Pupuk Indonesia to potentially utilize Fertiglobe’s global distribution business to facilitate the placement of its ammonia and urea in international markets, the Indonesian company said in a statement on its website.
The inking of the MOU took place on Oct. 31 at the opening event of Pupuk Indonesia’s representative office in Dubai, in the United Arab Emirates (UAE).
Pupuk Indonesia is one of Asia’s largest producers of ammonia and urea, with an export volume in 2021 of around 2 million mt of urea and 715,000 mt of ammonia, according to its statement. It also produces and exports other products, including NPKs.
The Indonesian company said its new representative office is aimed at expanding Pupuk Indonesia’s opportunities for trade cooperation in ammonia, fertilizers, and other products, and to gain broader access to the purchase of raw materials, especially for NPK fertilizer, and enable future collaborations with technology and manufacturing companies located in the UAE, which will support the Indonesian company’s trading businesses moving forward.
First Deputy Minister of Indonesia’s State-Owned Enterprises Pahala Nugraha Mansury said the opening of a representative office in Dubai is “a very strategic step” given three initiatives Pupuk Indonesia is developing.
The first of these is to ensure that Pupuk Indonesia has operational excellence, including supply chain efficiency. The second is related to food security and optimization, where he said fertilizer is one of the key success factors for having better food security.
“The third initiative is that Pupuk Indonesia believes it can also become one of the producers of products related to the green and circular economy, such as through green ammonia, green hydrogen, or in the medium term including blue ammonia and blue hydrogen,” said Pahala.