Thursday, 13 May 2010

Indonesia Has to Import Fertilizer

Indonesian Industry Minister Fahmi Idris exlained why government imports  fertilizer. He said that the gas fuel shortage and  the aging national fertilizer industry has caused a reduction in national fertilizer production, hence the country needs to import it.

"Our fertilizer industry is old that they cannot supply enough fertilizer. The average age of Indonesian fertilizer factory is above 20 years old," said Idris at the House of Representative complex on Thursday, Feb. 12. The age factor and gas fuel shortage cause low production efficiency and capacity.

Fahmi explained that the fertilizer factory in East Kalimantan is already 40 years old. As for the three gas plants in Aceh, one AAF plant has been closed, PIM I is 20 years old and PIM II has been running for three years. If they are running production with optimal level, each will produce 600,000 to 1.2 million tons of fertilizer. "But in reality, the second production only reached 500,000 tons because there isn't any gas supply," said Idris

The condition of South Sumatra's fertilizer factories is three amongst four factories aged above 25 years old. Fahmi added that in Jawa, the Kujang I fertilizer factory is inefficient since it uses 35 to 36 mmbtu of gas while the normal capacity only needs 25 mmbtu to produce one ton of fertilizer. Gresik fertilizer factory's pipe has been damaged by mud thereby ceasing production for three months.

In addition, the use of fertilizer by farmers is no longer fit with the agriculture department's regulation. The regulation stated 200 kg of fertilizer per hectare but the farmers tend to use 500 kg per hectare. There is also a shortage in land fisheries, which adds the national rate of fertilizer shortage.

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