Jakarta. President Joko "Jokowi" Widodo inaugurated the Rp 1.2 trillion ($76.3 million) fertilizer plant of Kaltim Amonium Nitrat in Bontang, East Kalimantan, on Thursday, Feb. 29. The facility is expected to substantially decrease the country's dependence on imported ammonium nitrate.

During the inauguration ceremony, President Jokowi underscored the importance of food security for the nation's future. However, he acknowledged that certain raw material components, such as ammonium nitrate, are still being imported.

"I appreciate and value the establishment of this plant because 21 percent of our ammonium nitrate is still imported," President Jokowi said.

President Jokowi highlighted the global food crisis affecting 22 countries, causing increased trade protectionism. "Importing food like wheat and rice used to be easy for us, but now everyone is cautious, everyone is putting on the brakes [of food export]," he said.

Completing the construction of this plant, he explained, would reduce ammonium nitrate imports by 8 percent from the current 21 percent, with 13 percent remaining subject to import.

President Jokowi expressed optimism that the plant would boost raw material availability for fertilizer production in Indonesia, particularly NPK (nitrogen, phosphorus, and potassium) fertilizers.

"With the completion of this plant's construction, we hope to enhance our self-reliance and productivity in the food sector, ensuring that the invested Rp 1.2 trillion will not be in vain," he detailed.

Encouraging State-Owned Enterprises (BUMN) to emulate Kaltim Amonium's initiative in constructing plants supporting national food security, President Jokowi acknowledged the Rp 1.2 trillion investment might not be substantial for BUMN but emphasized its crucial role in achieving self-sufficiency.

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