Stalled 4.5 years, Ministry of Investment Fully Support Planned Soda Ash Project in Gresik

Publication / Press Release / September 2021
Gresik, 10 September 2021 – Ministry of Investment/Indonesia Investment Coordinating Board (BKPM) Chairman Bahlil Lahadalia made a working visit to PT Petrokimia Gresik planned soda ash project or Natrium Carbonate (Na2CO3) this afternoon (10/9) as a show of support for PT Pupuk Indonesia (Persero) and its subsidiary, PT Petrokimia Gresik's development plans. The Minister of Investment and the Ministry of Investment board of directors was received personally by PT Pupuk Indonesia Vice President Director Nugroho Christijanto and President Director PT Petrokimia Gresik Dwi Satriyo Annurugo.

During his visit, Bahlil revealed his visit is a show of support for accelerating the construction of the first soda ash factory project in Indonesia by PT Petrokimia Gresik.

"We are executing the President's mandate of coming to the aid of State-Owned Enterprises (BUMN) and private national companies wishing to build industries for import substitute products, " revealed Bahlil during the visit to the planned project site.

Bahlil appreciates the great collaboration between the Ministry of Investment and PT Petrokimia Gresik and other related ministries in accommodating the licensing process and facilitating the acceleration of this investment project.

The Ministry of Investment will continue to monitor the construction process of the soda ash project, whose investment reaches IDR4,5 trillion and is targeted to finish construction in the next three years. Bahlil encourages BUMN to optimize all the potential of raw materials produced by upstream industries to be utilized and create added value. By doing so, BUMN will reap profits and increase the country's income, and the public can enjoy the results in the form of development.

"We will encourage, fully assist, with incentives and licensing. If a problem arises, please come to the Ministry of Investment and we will help facilitate," said Bahlil in closing during the afternoon press conference.

PT Petrokimia Gresik President Director Dwi Satriyo Annurogo explained that soda ash is a commodity with a demand reaching 1,000,000 tons per year and currently entirely imported. This soda ash project will fulfil the demands of the Indonesian market and become an import substitute product.

"We are grateful for the full support and aid from the Ministry of Investment for the execution of the soda ash factory construction on PT Petrokimia Gresik land," said Dwi during his address at the site of the planned project.

The soda ash project responds to the ever-increasing and growing up to 4% per year industry demand. The demand is boosted by the growth of other industries like glass and ceramic, soap, and detergent industries.

Soda ash production from PT Petrokimia Gresik factory is targeted at 300,000 tons per year to substitute for domestic/national import of soda ash reaching USD75 million per year. In addition, raw materials are produced by factories with proper infrastructure owned by PT Petrokimia Gresik. The factory is targeted to operate at the end of 2024.

PT Petrokimia Gresik was established officially on 10 July 1972. PT Petrokimia Gresik is a subsidiary of PT Pupuk Indonesia (Persero), Indonesia's most comprehensive fertilizer company located in Gresik Regency, East Java, with more than 450 hectares. PT Gresik owns 31 factories with total fertilizer and non-fertilizer production capacity reaching 8.9 million tons per year. (*)