Indonesian Political, Business & Finance News

Pertamina and Pupuk Indonesia Forge Collaboration to Bolster Energy and Food Security

| | Source: REPUBLIKA Translated from Indonesian | Business
Pertamina and Pupuk Indonesia Forge Collaboration to Bolster Energy and Food Security
Image: REPUBLIKA

PT Pertamina (Persero) and PT Pupuk Indonesia (Persero) signed a Memorandum of Understanding (MoU) on Wednesday (1/7/2026) to explore collaboration opportunities aimed at strengthening national energy security while supporting the sustainability of raw material supplies for the fertiliser industry and national food production.

Pertamina President Director Simon Aloysius Mantiri stated that this synergy embodies President Prabowo Subianto’s Asta Cita vision, particularly in building national self-reliance through energy and food self-sufficiency. “No nation is truly sovereign without energy. And no nation is truly strong without food. Therefore, the synergy between Pertamina and Pupuk Indonesia represents the two main foundations of Indonesia’s sovereignty: energy and food,” Simon said.

Simon explained that Pertamina is continuing its transformation through a Dual Growth Strategy by strengthening its core business to maintain national energy security while simultaneously developing low-carbon businesses through various innovations towards Net Zero Emission. Meanwhile, Pupuk Indonesia holds a strategic role in maintaining national agricultural productivity and strengthening Indonesia’s petrochemical industry. “When these two strengths are combined, I believe we are not just creating efficiency; we are building a strategic ecosystem that strengthens the industrial and economic foundation of the Indonesian nation,” Simon added.

Pupuk Indonesia President Director Rahmad Pribadi said Indonesia needs a strong energy sector to drive industry, and a strong industry to support food security and boost economic growth. “Pertamina and Pupuk Indonesia carry complementary mandates. When these two mandates are combined, what we build is not merely a relationship between companies, but a partnership that strengthens the national industrial ecosystem, enhances industrial competitiveness, and drives national economic growth,” Rahmad said.

Rahmad added that combining Pertamina’s competence in the energy sector with Pupuk Indonesia’s experience in the fertiliser and petrochemical sectors will create synergy that generates greater added value for both companies while delivering benefits for Indonesia. “Therefore, the synergy between Pertamina and Pupuk Indonesia is an important step to integrate the strengths of both companies in addressing challenges while capturing future growth opportunities,” Rahmad concluded.

This MoU serves as a foundation for Pertamina and Pupuk Indonesia to explore various cooperation opportunities that provide added value through the utilisation of each company’s competencies, strategic assets, and capabilities. The collaboration is also expected to strengthen the national industrial ecosystem, promote downstream processing, increase the added value of Indonesia’s natural resources, and bolster the competitiveness of domestic industry.

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