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Indonesia Fertilizer Children Get IDR 9,3 T from 8 Banks

A subsidiary of PT Pupuk Indonesia (Persero), PT Pupuk Sriwidjaja Palembang (Pusri) is building the Pusri IIIB factory project through funding with a syndication mechanism consisting of 8 BUMN and the private sector. The value of the factory construction project is US$ 670,251,271 or the equivalent of Rp. 10.52 trillion.

The funding obtained from the 8 state-owned companies and the private sector was worth IDR 9.3 trillion. A number of banks involved in project funding include BNI, Bank Mandiri, Bank Central Asia (BCA), Bank Rakyat Indonesia (BRI), Bank Tabungan Negara (BTN), Bank Syariah Indonesia (BSI), Bank Jabar Banten (BJB), and Bank Sumsel Babel (BSB).

President Director of Pupuk Indonesia, Rahmad Pribadi said, Pusri appointed BNI & Bank Mandiri as Joint Mandated Lead Arranger & Bookrunner (JMLAB) to further act as coordinators in the formation of a syndicated credit facility for funding the project.

“The two banks are responsible for coordinating with other banks and acting as Mandated Lead Arranger (MLA) or as participants, providing data and information related to credit formation plans and Pusri’s conditions in general to other banks,” he said at Langham Jakarta, Friday ( 10/13).

JMLAB has also appointed BCA & BRI as Joint Mandated Lead Arranger (JMLA) for Pusri-IIIB Project Syndication Funding.

According to him, the company and its subsidiaries strive to support food security and the national economy. According to him, the revitalization of Pusri IIIB will utilize the latest production technology, so it is hoped that it can increase the reliability of fertilizer production.

“In this way, the old Pusri-III and IV factories will be replaced with the Pusri IIIB factory with new technology. This will increase operational excellence,” he said.

Meanwhile, Pusri Main Director Tri Wahyudi Salen said that the construction of the Pusri-IIIB factory will be built at the PT Pusri complex, in Palembang, with low energy technology which can help save natural gas consumption and is environmentally friendly.

The Pusri-IIIB factory revitalization project will have a positive impact on the regional and national economy. The reason is, this project will open up jobs, increase regional income, and open up other economic opportunities.

The production capacity of the Pusri IIIB Factory is planned to be 1,350 tons of ammonia per day or 445,500 tons per year and for urea fertilizer it will reach 2,750 tons per day or 907,500 tons per year. In terms of energy use, the Pusri IIIB Factory is more efficient because the energy ratio for producing urea is 21.97 MMBTU/ton while ammonia is 32.89 MMBTU/ton.

Source : CNBC