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One Indian company which is under the fertilizer association of India, India Fertilizer Companies will explore investments in the form of urea fertilizer plant in Indonesia.
JAKARTA - One of India enterprise under the fertilizer association of India, India Fertilizer Companies will explore investments in the form of urea fertilizer plant in Indonesia.
Head of Investment Coordinating Board (BKPM) Gita Wirjawan, said he had a meeting with directors of Indian companies in Jakarta on Tuesday (14/12/2010).
"Problem fertilizer with India, we emphasize to local interests. I asked them for their investment priority to the domestic supply of fertilizer farmers. And, they will listen," says Gita.
However, the Gita has not been able to ensure the value of the investment and when the plant will be realized. However, he said, for a total of one million tonne capacity needed funds amounting to $ 1 billion. "I am sure they must have thought of (investment). They also saw the consumption of fertilizer in here," says Gita.
The Director General of the Ministry of Industry-Based Manufacturing Panggah Susanto said the plan is still in the exploratory stage. According to him, investment in fertilizer sector has opened opportunities.
"Fertilizer is exploring India. I propose, if you want a discussion, conducted in bussiness to bussiness. They seem to want government to government (g to g)," explained Panggah.
Ministry of Agriculture noted, the need for urea fertilizer reached 6.69 million tons in 2010, an increase compared to 2009 that as many as 6.31 million tons. Meanwhile, production capacity of approximately 5.35 million tons in 2010.
Meanwhile, Gita added, at present, central India investors showed great interest in investing in Indonesia. "From the beginning they just want to buy bauxite and coal, Indian investors are now willing to spend big money in Indonesia for the smelter projects, Kerta fire, and the port," said Gita.
Chairman of the Council of Indonesian Fertilizer (DPI) Zaenal Sudjais previously been said, to build a new plant with a capacity of 570 thousand tons per year, can cost approximately USD300 million. Meanwhile, to build a new plant with a capacity of 1.2 million tons of approximately $ 600 million needed funds.
Infrastructure Director General Ministry of Agriculture Gatot Irianto also said, at present, there was competition between domestic production of fertilizers and other countries, because formulas and product quality varied, quality stability, uniformity of shape and size, and fertilizer prices.
According to Billy, single and compound fertilizer containing nitrogen (N) requires natural gas raw material availability is increasingly limited and not renewable. "But not yet discovered the technology to use it directly because it requires high technology," said Billy. (Eden)
By rani, okezone.com, Updated: 12/14/2010 5:57 AM
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