Pusri demands protection from Chinese imports

Direksi memberikan keterangan pers, Jumat (5/2/10)






Pusri demands protection from Chinese imports

Nani Afrida , The Jakarta Post , Jakarta | Sat, 02/06/2010 1:02 PM | Business

State fertilizer producer PT Pusri said the company will be able to withstand competition from Chinese companies in the domestic market as long the government maintains its current policy on raw materials, particularly gas.
Pusri president director Dadang Kodri said the full implementation of the free trade agreement with China would not hurt the company for at least another three years as the government had already set the price of gas for the given period.
"What happens after the next three years is uncertain. If the government increases the price of raw material, Chinese products will dominate the domestic market because they have a stable price for raw materials," Dadang said.
The company is highly dependent on gas supply as it needed about 793 million standard cubic feet of gas per day (mmscfd) in 2010. The company is set to produce 7 million tons of urea fertilizer this year, 3 percent more than the 6.8 million tons produced in 2009.
"Our production capacity is 8 million tons annually. But PT Pupuk Iskandar Muda *PIM* is still being revitalized after a gas shortage," Dadang said, referring to the company's subsidiary.
Other subsidiaries include PT Petrokimia Gresik in Gresik, East Java, PT Pupuk Kujang in West Java, PT Pupuk Kaltim in East Kalimantan and PIM in Nangroe Aceh Darussalam.
Pusri is also optimistic its production of NPK fertilizer would grow by 70 percent to 2.2 million tons this year, up from 1.3 million tons in 2009.
Domestic fertilizer consumption currently stands at 1.4 million tons per year. The government predicts that in 2025, Indonesia will need about 23.2 million tons.
Dadang said the holding company of state fertilizer producers succeeded in increasing net profits from Rp 800 billion in 2004 to Rp 2.1 trillion in 2009. The sales also rose to Rp 36 trillion in 2009 from Rp 13 trillion in 2004.
"We have had significant financial growth," Dadang said.
The government is mulling a plan to improve the performance of all five state fertilizers company through redesigning the structure of the holding company.

http://www.thejakartapost.com/news/2010/02/06/pusri-demands-protection-chinese-imports.html