Entering 54th Year, State-Owned Fertiliser Firm Strengthens Business Foundation to Support Sustainable Growth
PT Petrokimia Gresik, an agro-industry solutions company and member of the Pupuk Indonesia holding, has recorded a positive operational performance amidst national and global fertiliser industry challenges. An increase in fertiliser production and various business transformation measures serve as capital for the company to strengthen competitiveness while supporting the national food self-sufficiency programme.
President Director of Petrokimia Gresik, Daconi Khotob, stated that these achievements align with the theme of the company’s 54th Anniversary, ‘Growing the Future’, which affirms the company’s commitment to building a foundation for sustainable growth for Indonesia’s agricultural sector.
‘The positive performance and the company’s journey over more than five decades cannot be separated from the ability to continuously adapt to changes and answer various challenges. This ability is an important provision for Petrokimia Gresik to continue supporting national food self-sufficiency while advancing Indonesia’s agricultural sector,’ Daconi said while leading the 54th Anniversary ceremony of Petrokimia Gresik in Gresik on Friday (10/7).
The company’s performance is reflected in the realisation of fertiliser production throughout 2025, which reached 4,683,477 tonnes, an increase of approximately 5% compared to 2024 production of 4,474,914 tonnes. This positive trend continued into the first half of 2026. Up to June 2026, Petrokimia Gresik’s fertiliser production reached 2,716,141 tonnes, higher than the same period the previous year which reached 2,431,506 tonnes. This increase is important capital to meet the 2026 production target set at 106% of the previous year’s target.
According to Daconi, this achievement was attained amidst various challenges, ranging from geopolitical dynamics and climate change to fluctuations in energy and raw material prices that still affect the fertiliser industry. ‘Amidst geopolitical dynamics, climate change, and fluctuations in energy and raw material prices that still overshadow the fertiliser industry, Petrokimia Gresik continues to strengthen the company’s foundation to grow sustainably, increase competitiveness, and provide increasingly broad benefits for Indonesian agriculture,’ he said. He emphasised that the current positive performance must be a stepping stone to create sustainable growth.
As part of the company’s transformation, Petrokimia Gresik is undertaking several reinforcements in the production and infrastructure sectors. One of these is modifying the Phosphate I Factory into the Phonska V Factory with Flex-Phos technology. This technology allows one facility to produce several types of fertilisers, such as NPK Phonska, NPK Solid Granulation, and phosphate fertilisers. With this flexibility, the company can more quickly adjust production to market needs while strengthening the resilience of the national fertiliser industry.
On the raw material side, the company is also building two sulphuric acid storage tanks with a total capacity of 40,000 tonnes. After the project is completed, Petrokimia Gresik’s sulphuric acid storage capacity will increase to 100,000 tonnes, thereby strengthening the reliability of raw material supply. Reinforcement is also being carried out in the logistics sector through the construction of Wharf A, which is capable of serving ships with a capacity of up to 60,000 deadweight tonnage (DWT) with a loading and unloading capability of up to 4 million tonnes per year. This infrastructure is expected to increase distribution efficiency while maintaining wharf occupancy at an optimal level.
Meanwhile, to ensure long-term energy supply, Petrokimia Gresik has established a gas supply cooperation from the MDA-MBH Field in the Madura Strait and the Ketapang Working Area in the North Waters of Madura Island. This cooperation is projected to add a gas supply of 30-35 million standard cubic feet per day (MMSCFD), which can sustain the company’s operations until 2035.
‘Transformation for us is not only about how the company becomes bigger, but how Petrokimia Gresik becomes more adaptive, efficient, and resilient in answering future needs. Therefore, we continue to strengthen production capabilities, reliability of raw material and energy supply, and carry out industrial transformation so that the company remains sustainable,’ said Daconi.
In addition to strengthening the business foundation, the company is also increasing its commitment to sustainability aspects. In 2025, Petrokimia Gresik was appointed by the Ministry of Industry as a pilot project for the application of Carbon Capture and Utilisation (CCU) technology. This programme is part of the company’s decarbonisation roadmap for the 2025-2030 period.
Daconi affirmed that all transformations being carried out aim not only to increase the company’s competitiveness but also to strengthen its contribution to agriculture, industry, society, and national development. ‘The 54-year journey is valuable capital for us to step towards the future. With the support of all stakeholders, we are optimistic that Petrokimia Gresik will continue to grow, become more competitive, and make a real contribution to the advancement of agriculture and maintaining the sustainability of national food self-sufficiency,’ he concluded.