Raw Material and Plastic Prices Rise: How Pupuk Kaltim Survives

The surge in prices for raw materials, particularly plastic components for packaging, is beginning to affect the fertiliser industry. Pupuk Kaltim (PKT) acknowledges the cost pressures arising from intensifying global dynamics but has chosen to respond with efficiency strategies to keep business performance intact.

Company Secretary of PT Pupuk Kaltim, Anggono Wijaya, stated that the price increases are not limited to a single component but affect several operational aspects, including packaging costs.

“So there are price increases in several components, for example, as mentioned earlier, like packaging and so on. Actually, it’s probably the same, with the current global dynamics, not just PKT feeling it but I’m sure other companies will experience the same,” said Anggono during the Media Silaturahmi event in Jakarta on Wednesday (29/4/2026).

According to him, this situation is a result of escalating conditions in the Middle East, triggering rises in raw material prices. He also acknowledged that many companies are facing similar cost pressures.

Nevertheless, Pupuk Kaltim has not directly passed on these increases to its business. The company has opted to optimise efficiency across various operational lines.

“Indeed, the approach we’re taking is efficiency,” he said.

Anggono explained that Pupuk Kaltim is implementing an operational excellence programme to ensure all functions run optimally. This approach includes improvements in governance and strengthening risk management.

“So PKT has an operational excellence programme, how we ensure that operational functions are carried out well. Well, with proper governance, and also with strong risk management, so that the efficiency programmes implemented can alleviate the increases in costs elsewhere,” he clarified.

He emphasised that although there are cost increases in several components, the efficiency measures taken are able to maintain the overall stability of the company’s business.

“So yes, the point is there are increases, but we try to be efficient in other areas. Thus, overall, it doesn’t impact PKT’s business,” he concluded.