Rising Production Costs Do Not Impact Kaltim Fertiliser Business

JAKARTA, KOMPAS.com - PT Pupuk Kalimantan Timur (Kaltim) or PKT states that the increase in costs for several production components does not impact the company’s business. Pupuk Kaltim is a subsidiary of the state-owned enterprise (BUMN) PT Pupuk Indonesia (Persero). Company Secretary of Pupuk Kaltim, Anggono Wijaya, acknowledges that several production components have experienced increases due to the escalation of conflict in West Asia (Middle East). “So there is an increase in prices for some components of raw materials,” said Anggono after reporting Pupuk Kaltim’s Operational Performance for the First Quarter of 2026 in Menteng, Jakarta, on Wednesday (29/4/2026). Among these pressures are energy costs and the price of plastic or sacks for packaging products. To address this issue, Pupuk Kaltim has implemented efficiency through the Operational Excellence programme. This programme ensures that operational activities continue to run well and correctly, accompanied by strong risk management. “Thus, the efficiency programme being implemented can alleviate the increases in costs mentioned earlier,” stated Anggono. He emphasised that this internal efficiency allows Pupuk Kaltim to continue running its business as usual. “Overall, it does not impact PKT’s business,” said Anggono. Pupuk Kaltim has three main products: urea, NPK, and ammonia. “Total production is around. This is the total amount, 2.14 million tonnes,” said Anggono. The breakdown is 1,164,435 tonnes or 33.65 percent urea; 104,318 tonnes or 32.49 percent NPK, and 874,644 tonnes or 31.91 percent ammonia.