Jakarta (ANTARA News) - The government has set up a parent holding company for five state fertilizer makers -- PT Pusri, PT Pupuk Kalimantan Timur, PT Pupuk Kujang, PT Petro Kimia Gresik and PT Pupuk Iskandar Muda.
"The parent holding company called PT Agro Kimia Indonesia will officially be operational next week pending the general meetings of the state fertilizer companies` shareholders," Secretary of the State Enterprises Minister Said Didu said on Monday.
The setting up of the parent holding company was one of the government`s steps to solve the problems facing the fertilizer industry including gas supplies to fertilizer makers, he said.
"In the future, the parent holding company will focus on such issues as investment, production, marketing and distribution particularly within the frame of the government`s programs on subsidized fertilizers," he said.
In addition, the parent holding company would also try to turn the state fertilizer makers into world-class companies and support the country`s food security program, he said.
"A lack of synergy among state fertilizer makers in producing and distributing fertilizers is to blame for fertilizer shortages in a number of areas in the country," he said.
In the first phase of its operations, the parent holding company would be tasked with seeking funds to revitalize four fertilizer plants aged more than 30 years, three of them owned by PT Pusri and one by PT Pupuk Kaltim, he said.
"The four fertilizer plants must be revitalized right now so we need an investment strategy which will involve synergy from the state fertilizer companies," he said. (*)