PT Pupuk Indonesia (Persero) and PETRONAS Chemicals Group Berhad (PCG) have strengthened their strategic partnership through the signing of a renewed Memorandum of Understanding (MoU), opening broader collaboration opportunities to support both national and regional food security, as well as to advance the downstream development of Indonesia’s fertilizer and petrochemical industries.

This cooperation includes the exploration of potential synergies in urea and ammonia supply, technical and operational knowledge transfer, and the strengthening of corporate governance in the fields of Health, Safety, and Environment (HSE). The collaboration is expected to serve as a catalyst for the development of a more sustainable, efficient, and resilient national fertilizer and petrochemical industry capable of meeting regional food demands, while ensuring compliance with all applicable laws and regulations.

The partnership also demonstrates Pupuk Indonesia's commitment to supporting regional food security by strengthening the fertilizer supply chain across Southeast Asia.

“This collaboration expands our scope of synergy, not only in product supply but also in capacity building, technology transfer, and downstream project exploration. It is a strategic move to bolster the national downstream industry and enhance the operational reliability of our fertilizer plants,” said Rahmad Pribadi, President Director of Pupuk Indonesia, during the MoU signing ceremony held in Jakarta on Thursday, July 31, 2025.

In addition, the two companies also agreed to a Joint Feasibility Study Agreement for the development of methanol plant technology to further support the downstream development of Indonesia’s petrochemical industry. Methanol is a high-value commodity with a broad market and serves as a strategic component in Pupuk Indonesia’s ongoing non-fertilizer business expansion and diversification. Domestic methanol development is expected to reduce import dependency and promote national energy self-sufficiency.

Moreover, this partnership marks a strategic step to enhance the competitiveness of Pupuk Indonesia as a leading player in the fertilizer and petrochemical industry in Southeast Asia. Through this collaboration, Pupuk Indonesia has the potential to expand its partnership network to better navigate increasingly complex industry challenges.

The partnership also includes technology transfer, technical knowledge exchange, and cooperation in the field of Health, Safety, and Environment (HSE), which will strengthen the operational reliability of both companies.

“This strategic partnership is a concrete manifestation of our commitment to building a national fertilizer industry that is efficient, competitive, and sustainable. We believe that such collaboration will strengthen Indonesia’s position in facing global challenges, while also realizing more robust regional food security,” Rahmad concluded.