Domino Effect of Building Fertilizer and Methanol Factory in Papua – Government will build a fertilizer and methanol factory in West Papua. A Ministry of State-Owned Enterprises (BUMN) and a Ministry of Investment/Investment Coordinating Agency (BKPM) are currently making preparations. SOE Minister Erick Thohir ensured that the ammonia-urea and methanol factories in Papua would have a domino effect in Eastern Indonesia, by absorbing large numbers of workers so as to equalize the economy in the West and East.

 “This also produces a domino effect, such as opening up employment opportunities and economic equality, especially in Eastern Indonesia,” Erick said through his Instagram account, Friday (8/4/2022).

 Not only that, the two factories are predicted to be able to suppress methanol imports and strengthen national food security. On this basis, President Joko Widodo (Jokowi) asked the Ministry of SOEs and the Ministry of Investment to immediately realize the construction of the factory.

 “In accordance with the direction of the President, this development can help the government reduce methanol imports and strengthen national food security,” said Erick.

Meanwhile, the beginning of the construction of a fertilizer and methanol factory in Papua was marked by the signing of a cooperation agreement between PT Pupuk Indonesia (Persero) and Genting Oil Kasuri Pte Ltd (GOKPL).

This agreement is also for the sale and purchase of natural gas from the Kasuri Block for the Ammonia-Urea and methanol plant in West Papua. The gas supply volume is for about 112.6 MMSCFD for the ammonia-urea plant, and 109.3 MMSCFD for the methanol plant.

In this cooperation, Pupuk Indonesia can get a guaranteed supply of natural gas to meet the needs of the ammonia-urea and methanol plant project in West Papua. In addition, it is also for the needs of the Pusri 3B fertilizer factory and also to meet the gas supply for the existing factory. The ammonia-urea and methanol plant will have a production capacity of 1.15 million tons of urea and 1 million tons of methanol. This project will be run by a subsidiary of Pupuk Indonesia, namely PT Pupuk Kaltim.

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