February 9, 2010

Indonesian fertiliser producer PT Pupuk Sriwijaya is hoping that the government could impose national standards so as to control the amount and quality of imported fertilisers.

Pupuk Sriwijaya boasted lower selling price compared to those produced by China, but nonetheless suggested a few measures to push the selling price of imported fertilisers.

Chief Director Dadang Heru Kodri said on Friday (Feb 5) his company and its four subsidiaries sell their products at around US$270 per tonne and "the price could remain until 2012."

However, Dadang said the government could limit the access of fertilisers to one port, for example Belawan Port in Medan to increase unload cost. Dadang also said another way to limit the amount of import is to impose national standards which would also maintain the quality level of imported fertilisers.

China could produce up to 134 million tonnes of fertiliser per year according to Pupuk Sriwijaya, far below the combined production capacity of the company and its subsidiaries of 2.1 million tonnes.