BOD Petrokimia Gresik Encourages Execution of Business Strategies in Facing Challenges in the Golden Age

09 April 2022 14:58 / Corcom of PG / 3958x viewed

Gresik, 07 April 2022 Petrokimia Gresik (PG) presented six strategies for acing the biggest challenges to come in 2022 in the Town Hall Meeting held at SOR Tri Dharma Petrokimia Gresik. The reason is, in July 2022 to coincide with PG's Golden Anniversary, the government has determined that the allocation of subsidized fertilizers s only intended for two types of fertilizers, namely Urea and NPK. Where previously, four other types of fertilizers were also included in the subsidized fertilizer scheme; namely SP-36, ZA, Petroganic Granule Organic Fertilizer, and Liquid Organic Fertilizer or POC.

President Director of PG, Dwi Satriyo Annurogo said that PG's sales achievement throughout 2021 was IDR 28.5 trillion. Of this figure, 74% of them were obtained from the sale of subsidies, which was IDR 20.9 trillion. Only 26% or IDR 7.5 trillion was obtained from commercial sales.

It should be noted and underlined that of the total number of subsidized fertilizer sales, as much as IDR 5.3 trillion was obtained from the sale of SP-36, ZA, Petroganic, and POC fertilizers which will no longer be supported by the government starting at the beginning of the second semester of 2022.

"Now is no longer the time to create a program, but it is time for proof to overcome challenges. If the previous subsidy changes were only discourse, starting in July 2022, it has been implemented," said the President Director in front of thousands of PG personnel.

In every challenge, there will always be another way to go through it. The President Director also revealed that if PG can increase non-subsidized sales, there will be an increase in sales margins. So that the potential profit lost from subsidized products that will be abolished, can be closed with even greater gains.

"It is time for a business transformation program. To make it happen, support from all Petrokimia Gresik Personnel is needed so that the strategy that has been prepared provides optimal results," said the President Director.

There are six strategies presented by the President Director in facing the challenges at this year's Gold Anniversary so that PG no longer relies on subsidized fertilizers, and a large wave of changes in subsidy schemes This year did not become a tsunami that hit the company's sustainability.

First, creating a new market, or creating a new market. When it comes to subsidized fertilizers, so far PG is not marketing products but is only limited to distributing or delivering products. Some of the programs that can be run include collaborating with central and local government programs, food estate programs, expanding the Makmur program, urban farming, and others. Looking for alternative uses of fertilizers or chemical products to create new markets.

Second, it presents new product innovations. PG has just released SP-26, Phonska Alam, Petro Niphos, and Green Surfactant in 2021 which currently has a lot of demand from the oil and gas (oil and gas) industry. Meanwhile, in 2022, PG will give birth to ZA Plus products, Kebomas Petro Cane (NPK products for sugarcane commodities), Kebomas Sipedas (NPK chili), and NPK Kebomas.

"This new product must adjust to the demand or needs of the market. So that the product is sought after by the market," said the President Director.

Third, the optimization of the plant. That is to convert the SP-36 plant (PF I) into Phonska V. Then build a Soda Ash plant that will have a positive impact, namely having new products and having CO2 production that PG needs for the production of other products, as well as the construction of Urea warehouses.

Fourth, continue to improve cost efficiency. In this case, every PG person is expected to contribute to cost efficiency.

"No matter how small the efficiency made by individuals in Petrokimia Gresik, it will certainly have a big impact on the company. This efficiency will strengthen product competitiveness and profit for the company," said the President Director.

Fifth is operational effectiveness. As a manufacturing company, PG must run effectively. Among them are digitalization, maintenance excellence, and captive power programs.

The last program is HR empowerment. Among them are increasing employee competence through matrix assignments, position rotations, and learning tasks. Then realize agile organization by building matrix organizations in the form of project managers and senior project managers.

"I don't want there to be a presumption that Petrokimia Gresik is big because of subsidies, but big because Petrokimia Gresik’s peers are superior. If at the age of the first 50 years we have succeeded in making a major contribution to national food security and agriculture in Indonesia, what will be the next fate? " concluded the President Director.