PIM Urea Production Falls Short of Target

Banda Aceh - PT Pupuk Iskandar Muda (PIM) in Krueng Geukuh, North Aceh, produced 532,070 tons of urea fertilizer falling short of its target of 570,000 tons last year. Eko Sunarko, the president of the state company said most of the production is sold to farmer at subsidized price in the provinces of Aceh, North Sumatra, West Sumatra, Riau and Riau Islands. PIM also produced 357,460 tons of ammonia or 90.27 percent of its target. PIM faces difficulties in securing gas basic material after supply from the Arun gas field has been stopped. It has to rely on supply from other areas such as Bontang in Kalimantan. Eko said in 2012, PIM had only seven cargoes of liquefied natural gas (LNG) enough to feed one of its factories. A cargo is around 55,000 tons. This year, PIM hopes to receive eight cargoes of LNG from BP Tangguh, which operates an LNG plant in Tangguh, Papua, Eko said. He said this year PIM plans to produce NPK fertilizer with a production capacity of 2 million tons a year. He also said PIM plans to use coal for fuel as it is cheaper than gas to reduce its production cost. (*)