MIND ID and Pupuk Indonesia Cooperating in Potash Offtake to Support Food Security

Jakarta, 31 January 2022 – MIND ID or Mining Industry Indonesia, the Holding State-Owned Enterprise for the Mining Industry, with members PT Aneka Tambang Tbk, PT Bukit Asam Tbk, PT Freeport Indonesia, PT Inalum (Persero) dan PT Timah Tbk, is cooperating with PT Pupuk Indonesia (Persero) (PIHC) to offtake potash as one of the main raw materials for fertilizers.  The Memorandum of Understanding was signed by MIND ID’s Director of Business Development Dilo Seno Widagdo and PIHC Production Director Bob Indiarto, witnessed by Vice Minister of SOE I, Pahala Nugraha Mansury, in Jakarta, 31 January 2022.

The national fertilizer industry supports Indonesia as an agrarian country, producing and exporting various agricultural products.  To produce fertilizer, Indonesia imports about two to three million tons of potash each year.  While PIHC imports nearly 1 million tons of potash each year.  Imports are necessary as Indonesia lacks potash resources. MIND ID, therefore, is seeking the potential and opportunity of acquiring shares in mining companies overseas.

Vice Minister of SOE I, Pahala Nugraha Mansury, said that “This initiative is one of the Strategic Projects of SDU 88 which is the focus of the Ministry of State Enterprises. The 95% of potash processed material required by the fertilizer industry indicates the extent of domestic potash needs.  The inorganic initiative to go global is expected to fulfill such need.  The Ministry of State Enterprises is also encouraging the sustainability aspect from this cooperation.”

MIND ID’s Director of Business Development Dilo Seno Widagdo said that “MIND ID is continually opening opportunities to forge strategic alliances to boost the down streaming efforts of the industry.  The company is committed to enter into strategic partnerships with experienced entities in the related industry, specifically potash, to support the fertilizer industry and fortify national food security.

PIHC Vice President Director Nugroho Christijanto said that “We are convinced that this cooperation will guarantee raw material supply for our existing or new NPK plants, in future.  The assurance of supply and competitive prices will impact greatly on the domestic fertilizer supply in the context of the national food security and maintain the buying power of Indonesian farmers.  Pupuk Indonesia is currently embarking on a business transformation program in which one of the pillars, as mandated by the Minister of State Enterprises, is Feedstock Security and Optimization, or the assurance and optimization of raw materials, whether gas or non-gas supply.

This strategic cooperation initiative is expected to guarantee potash supply for Indonesia in the long term, which will fortify the fertilizer industry in its efforts to support national food security.  This strategic cooperation is also a manifestation of the Government’s mandate to MIND ID, namely to manage strategic resources and to become a world class company.  The opportunities to acquire a stake in an overseas potash mining company will accelerate the Company’s portfolio globally.

On MIND ID

The Mining Industry Holding was officially formed on 27 November 2017, with PT Indonesia Asahan Aluminium (Persero) as the holding company with majority shares in four largest mining companies in Indonesia, PT Aneka Tambang Tbk, PT Bukit Asam Tbk, PT Timah Tbk and PT Freeport Indonesia.

On 17 August 2019, the Mining Industry Holding was transformed into MIND ID (Mining Industry Indonesia) to differentiate the functions of INALUM as Holding and as Operational company.

For more information, please contact:

Heri Yusuf

SVP Corporate Secretary
PT Inalum (Persero) Holding Industri Pertambangan

Email: heri.yusuf@mind.id

www.mind.id