Abu Dhabi - The two SOEs from each country agreed to sign a preliminary agreement or Head of Agreement (HoA) on the development of urea and ammonia. The agreement was signed by Pupuk Indonesia President Director Rahmad Pribadi and BFI Sdn Bhd Chief Executive Officer Harri Kiiski in Abu Dhabi, United Arab Emirates (UAE).
"Pupuk Indonesia welcomes the cooperation in the development of urea and ammonia with Brunei Fertilizer Industries, as the state-owned fertilizer company of Brunei Darussalam. This cooperation is in line with the mandate received by Pupuk Indonesia as the leader in supporting national food security. As a state-owned enterprise, Pupuk Indonesia with the best innovation and performance continues to support increased agricultural productivity and encourage the green transformation of Indonesia's fertilizer and petrochemical industry," said Rahmad.
Initiated by Pupuk Indonesia, this cooperation will continue to be expanded by involving fertilizer producers from other ASEAN countries to encourage food security at the regional level.
The core of the cooperation includes an agreement by both parties to explore synergies in marketing, operations and maintenance services, collaboration on plant development projects, and procurement of critical equipment and emergency spare parts. In addition, the two state-owned companies from the two neighboring countries will share learning on health, safety, security, and environment (HSSE) aspects, as well as collaboration in knowledge sharing and training.
Rahmad further explained that this cooperation is a joint effort between BFI and Pupuk Indonesia as a first step to build a mutually constructive ecosystem in the fertilizer industry in ASEAN, starting with Indonesia and Brunei. Going forward, there are many areas for commitment and cooperation with BFI and other fertilizer producers in ASEAN.
"Pupuk Indonesia sees that this cooperation will strengthen regional relations, especially in the ASEAN region. We as fertilizer producers in the ASEAN region together want to ensure there are no process interruptions in our activities, because the availability of fertilizers is directly related to food security. In this case, it certainly also concerns regional food security," Rahmad explained.
After the signing process, Pupuk Indonesia and BFI will form a joint team consisting of representatives from both parties. Subsidiaries may also be involved in further implementation based on the signed agreement.
On the same occasion, BFI Chief Executive Officer Harri Kiiski welcomed the urea and ammonia development cooperation with Pupuk Indonesia.
"BFI welcomes the cooperation through the signing of this Head of Agreement. Not only as an inter-company relationship, but as an inter-state relationship at the ASEAN regional level. We believe this cooperation is a workable partnership that will benefit all parties, both BFI and Pupuk Indonesia," Harri explained.
With a production capacity of 1,365,000 metric tons of urea per year, BFI, which was established in 2013, is one of the largest fertilizer factories in Southeast Asia. As a state-owned enterprise, BFI has always been committed to supporting the downstream of Brunei Darussalam's oil and gas industry in a progressive and dynamic manner.
Pupuk Indonesia, as the largest fertilizer company in Asia Pacific, Middle East and North Africa, currently has a production capacity of 9.4 million tons of urea fertilizer and 7 million tons of ammonia. With this capacity, Pupuk Indonesia is one of the important pillars in sustaining national food security and plays a significant role in supporting regional food security, especially in ASEAN.