Petrokimia Gresik Celebrates 51 Years of Agricultural Prosperity with Record-Breaking Performance

Gresik, July 10, 2023 – Petrokimia Gresik, the Agroindustrial Solution company and a pivotal member of the Pupuk Indonesia holding, marks a significant milestone as it commemorates its 51st year of contributing to agricultural prosperity in Indonesia. The company, founded in 1972, has achieved its most outstanding performance to date, showcasing an unwavering commitment to innovation and dedication to advancing Indonesian agriculture.

Dwi Satriyo Annurogo, the CEO of Petrokimia Gresik, expressed pride in the company's achievements during the 51st-anniversary celebration held on Monday in Gresik, East Java. The notable success is attributed to the relentless commitment and innovative spirit of the Petrokimia Gresik team, aligning with the theme of the anniversary celebration, "Solution for National Prosperity."

"In the midst of 2022, Petrokimia Gresik navigated changes in subsidized fertilizer regulations through Minister of Agriculture Regulation No. 10 of 2022. Despite the reduction in the number of subsidized fertilizers and eligible commodities, our team, guided by Pupuk Indonesia, demonstrated exceptional synergy, enabling us to surpass our expectations for 2022," said Dwi Satriyo.

The pinnacle of Petrokimia Gresik's achievements in 2022 is underscored by a net profit of Rp3.23 trillion, approximately 285% of the Planned Corporate Work and Budget (RKAP) of Rp1.13 trillion. This profit stands as the highest recorded in Petrokimia Gresik's illustrious history of contributing to the nation's prosperity.

Additionally, the company health index achieved a score of 91, earning the predicate "Healthy AA," surpassing the RKAP score of 78 with a "Healthy A" predicate. The Key Performance Indicator for the company reached 106.11%, exceeding the RKAP of 100%.

The Petrokimia Gresik team introduced innovative initiatives throughout 2022, creating added value totaling Rp277 billion for the company. This achievement is the result of the collaborative efforts of 91% of the employees who continually strive for improvement.

"Petrokimia Gresik's innovations have not only made a significant impact on productivity and profitability but have also garnered international recognition. Five innovation clusters of the company were awarded the '4 Stars' rating, the highest category, at the 27th Asia Pacific Quality Organization (APQO) event, demonstrating our team's ability to inspire and achieve international acclaim," emphasized Dwi Satriyo.

Furthermore, the Prosper Program Petrokimia Gresik serves as a tangible solution for the company to contribute to national prosperity. The program, initiated by Pupuk Indonesia and subsequently becoming a platform for the Ministry of State-Owned Enterprises, successfully helped increase agricultural productivity, covering over 92,000 hectares or approximately 93% of the 2023 target of 99,000 hectares. Last year, the program achieved 116% of the target, covering an area of 98,598 hectares with a total fertilizer absorption of 63,779 tons.

The company's outstanding performance has garnered recognition from stakeholders, receiving 70 awards over the year, including the Propernas Emas, the highest rank from the Ministry of Environment and Forestry of the Republic of Indonesia (KLHK), and the Green Industry Level V (the highest level) from the Ministry of Industry.

"The success in achieving the company's best performance in 2022 is undoubtedly tied to the implementation of the AKHLAK values (Amanah, Kompeten, Harmonis, Loyal, Adaptif, and Kolaboratif) and the application of the Respectful Workplace Policy as one of the embodiments of AKHLAK," highlighted Dwi Satriyo.

Looking ahead, Petrokimia Gresik is prepared to address challenges such as changes in subsidized fertilizer regulations, specifically the Direct Subsidy to Farmers (SLP). The company has strategically positioned itself to transform these challenges into opportunities, including the implementation of the Smart Precision Farming program. This initiative reflects Petrokimia Gresik's commitment to supporting national food resilience through the use of modern technology and the Internet of Things (IoT), employing drones, and introducing new technology products for more effective, efficient, and precise cultivation towards modern farming.

A significant milestone for Petrokimia Gresik in 2023 is the introduction of the first nano-technology fertilizer produced in Indonesia, scheduled for launch soon. This technology allows optimal absorption of fertilizers through leaf stomata, making their usage more effective.

"To continue being a solution for Indonesian agriculture, the company is undertaking various business transformation efforts, including the development of factories and various supporting facilities. In 2023, Petrokimia Gresik is constructing the Phonska V Plant with a capacity of 600,000 tons and a Urea Warehouse with a capacity of 20,000 tons.

"The world is not only changing but is also facing challenges in the era of disruption. Old business models can suddenly become obsolete, and new business patterns take over. Therefore, adaptability and creativity are key in competition to ensure Petrokimia Gresik continues to excel in providing Agroindustrial Solutions to enrich the nation," concluded Dwi Satriyo.