Phosphate company continues with expansion plans in Indonesia
AMMAN – The Jordan Phosphate Mines Company (JPMC) announced Saturday plans to set up a fertiliser plant in Indonesia as part of its expansion and marketing strategy.
The Jordan News Agency, Petra, said that JPMC and the Indonesian government have registered a joint venture company, Petro Kaltim Abadi, to establish a factory in Pantang.
The new project is the company’s second investment in Indonesia as last year it inaugurated a fertiliser factory, Petro Jordan Abadi, in Gersik city, East Java province. The project was JPMC’s first strategic venture abroad.
JPMC Chairman Amer Majali said establishing a new firm in Indonesia is part of the company’s new expansion strategy for production and marketing to new destinations, according to Petra.
Majali said the two sides also reached a preliminary agreement to set up a third company in the field of fertilisers production to cover the market needs of Indonesia, adding that the phosphate company will contribute to 40 per cent of the $10 million capital of the recently-registered Petro Kaltim Abadi, while the contribution of the Indonesian government will be 60 per cent.
The initial cost of the project, Majali said, is estimated at $300 million, 30 per cent of which will be covered by the two partners while remaining funding will be secured by soft loans from development banks owned by the Indonesian government.
The entire phosphoric acid and fertilisers production of the factory will be purchased by the Indonesian government, Majali said.