PT Pupuk Indonesia (Persero) has signed two Memorandums of Understanding (MoUs) related to strategic plans for the supply of natural gas and the utilization of carbon dioxide (CO₂) with two subsidiaries of PT Energi Mega Persada (EMP) Tbk. The signing of these MoUs marks an important step in securing the supply of raw materials for fertilizer production while accelerating the energy transition to ensure the sustainability of Indonesia’s fertilizer industry in support of national food security.

“Through these two strategic MoUs, Pupuk Indonesia is not only strengthening the availability of raw materials but also becoming an enabler of the clean energy transition to realize food self-sufficiency and a more resilient, efficient, and sustainable fertilizer industry,” said Rahmad Pribadi, President Director of Pupuk Indonesia, during the MoU signing ceremony in Jakarta, Thursday (July 10, 2025).

The first MoU was signed between Pupuk Indonesia and EMP Gebang Limited, the operator of the Gebang Working Area. Through this agreement, Pupuk Indonesia and EMP Gebang Limited will conduct studies, evaluations, and exchange information on the potential for cooperation in utilizing the natural gas supply from the Gebang Working Area in North Sumatra. Under the MoU, Pupuk Indonesia is exploring the possibility of utilizing EMP Gebang's gas, with an estimated daily delivery of approximately 100 BBTUD.

Rahmad stated that the Gebang Working Area is a promising source of long-term domestic gas supply that is highly relevant and aligned with the development or revitalization of fertilizer plants in Northern Sumatra. Gas supply from the Gebang Working Area is expected to support operations and revitalization plans at PT Pupuk Iskandar Muda (PIM).

“Through this MoU, we will receive gas supply support from one of EMP’s blocks. God willing, with this additional supply, we can do a lot at PIM, including revitalization,” said Rahmad.

He emphasized that the availability of gas, as the main raw material, is a crucial factor in meeting national fertilizer needs. He added that the planned revitalization of PIM's plant heavily depends on the certainty of gas supply to ensure operational sustainability, increase production capacity, and drive efficiency.

“To be able to revitalize the plant, we need long-term gas supply support,” he stated.

Meanwhile, the second MoU was signed between Pupuk Indonesia and PT Pema Global Energi (PGE) concerning the utilization of carbon dioxide (CO₂) emissions. Through this MoU, Pupuk Indonesia and Pema Global Energi will explore potential cooperation in the development of Carbon Capture and Storage (CCS) and Carbon Capture Utilization and Storage (CCUS) in PGE’s Working Area, particularly in the Arun Gas Field, Lhokseumawe, Aceh, for the production of blue ammonia.

Rahmad explained that the Arun Special Economic Zone (SEZ) was selected as the location for CCS and CCUS development due to its strong potential as a center of economic growth in Aceh. With this potential, he hopes that Aceh will become a global hub for clean ammonia trade.

Moreover, Pupuk Indonesia is also collaborating with a Japanese company to develop hybrid green ammonia in Aceh. Rahmad revealed that negotiations are underway to relocate the planned ammonia bunkering facility from Singapore to Aceh.

“So we will not only produce clean ammonia but also turn Aceh into a global trading hub. We ask for your prayers and support,” he said.

Rahmad further stated that the signing of these two MoUs is a tangible form of Pupuk Indonesia’s support for the government’s Asta Cita vision to achieve food self-sufficiency and build a green economy, while also working toward the Net Zero Emission (NZE) 2060 target. Additionally, the project is expected to create job opportunities for local communities and drive economic growth in Pupuk Indonesia’s operational areas.

“We believe that this initiative will not only impact the environment and industry to achieve national food security but will also strengthen Indonesia’s position in the global clean energy value chain,” Rahmad concluded.

On the same occasion, President Director & CEO of EMP, Syailendra S. Bakrie, welcomed the initiation of cooperation in CO₂ emission utilization and natural gas supply with Pupuk Indonesia. He hopes that the development of CCS and CCUS facilities with Pupuk Indonesia will support the government’s target of achieving NZE by 2060.

“With the development of CCS and CCUS facilities in the PGE Working Area, we hope to support the government’s plan to reach Net Zero Emission by 2060. In the first quarter of this year, the PGE Working Area produced around 45 million cubic feet of gas per day and 1,033 barrels of oil per day. The block also has proven and measurable reserves of 159 billion cubic feet of gas and 10.8 million barrels of oil,” said Syailendra.

EMP Deputy CEO & CFO, Edoardus Ardianto, stated that EMP Gebang Limited is committed to supporting the fertilizer industry’s raw material needs by ensuring gas supply for Pupuk Indonesia. He emphasized that the company will accelerate production to meet Pupuk Indonesia’s critical gas demand.

“From previous discussions, we understand that Pupuk Indonesia needs around 100 million cubic feet of gas per day to operate its plants. Gebang is expected to begin gas production at around 40 million cubic feet per day in 2027. This is projected to increase to 100 million cubic feet per day by 2030. Pupuk Indonesia is one of the target markets for the gas produced by Gebang in the future,” he said.