PETROKIMIA GRESIK RE-EXPORTS NPS FERTILISER TO INDIA

Event : -

Place : Gresik

Day / Date : Wednesday, October 31^st, 2018

PT Petrokimia Gresik (PG) re-exports the NPS fertiliser (20-20-13) as much 26.493 tonnes to India today, Wednesday (31/10). As of October 2018, PG recorded to export NPK and NPS fertilizers with various formulas to India and the Philippines amounting to 137.702 tonnes.

Marketing Director of PG, Meinu Sadariyo, stated that in 2018 the company had exported NPS fertilisers to India for two buyers, which are Quantum Fertilisers Limited and Agrifield DMCC.

"But for today's loading, we serve DMCC Agrifields. Previously, we also exported NPS fertilisers to Agrifields DMCC in April and May 2018, each of 24.195 and 22.499 tonnes", Meinu explained.

While Quantum Fertilizers Limited, continued Meinu, the company had realised the exports of 25.294 tonnes of NPS fertilizer (20-20-13) in January 2018.

Furthermore, for NPK fertiliser (14-14-14), PG had done the exports for two buyers in Philippines, namely Agrotech Corporation and Universal Harvester Inc.

"Exports were carried out four times, twice in January and twice in October 2018. The total quantum of NPK exports to Philippines reached 39.219 tons," Meinu added.

Meinu further stated that, this action of fertiliser exporting is in line with the policy of PT Pupuk Indonesia (Persero) Holding Company, where companies are encouraged to be able to contribute in supporting the national economic growth. Since exports will contribute to the foreign exchange, as well as help to strengthen rupiah exchange rate against US dollar (US).

"The weakening of rupiah exchange rate against US Dollar, cannot be separated from the global crisis due to the policy of the US Central Bank to raise interest rates. As a result, US Dollar returns to its country. Therefore, it weakens several world currencies, including Rupiah. By exporting, we hope to be able to help overcome these problems", Meinu explained.

Fertiliser exports, Meinu continued, is a form of recognition by world business people on this company’s existence. Given that, currently, PG is known as the most complete and largest compound fertiliser producer in Indonesia with NPK production capacity reaching 2.7 million tons per year.

Besides its huge capacity, PG also has the capability to produce NPK and NPS fertilisers with various formulas as consumers’ demand. Until 2018, PG recorded to have made more than 40 NPK and NPS fertiliser formulations for various commodities to many companies, both domestic and foreign.

"This effort is a company strategic action in making itself as a fertiliser producer which is able to answer consumer needs and provide solutions for the agro-industry sectors", Meinu explained.

Separately, the President Director of PT Pupuk Indonesia (Persero), Aas Asikin Idat, appreciated this action. The export realisation confirms that the products of PT Pupuk Indonesia's subsidiaries are demanded by foreign agricultural and plantation markets.

Aas said that, in the past five years, PG had exported several products to various countries, especially NPK, with total quantum of more than 500 thousand tonnes. This amount excluded the realisation of fertilizer exports from other PT Pupuk Indonesia subsidiaries.

"Hopefully in the following years, the export by Petrokimia Gresik can be increased even more. But of course, without ignoring its main obligation to produce and maintain the availability of subsidised fertilisers”, he stated.

PT Petrokimia Gresik

Yusuf Wibisono

Company Secretary

For further information, kindly contact:

Corporate Secretary : Yusuf Wibisono

Office : (031) 3981811

Ext. 2218

Mobile : 0811 378 571

Email : wibisono@petrokimia-gresik.com

yusufwibie@gmail.com