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Dok/PT Pupuk Indonesia
Pupuk Indonesia Generates Benefits Of IDR 1.8 Trillion, Boosts Innovation Efforts
Friday, 06 Sep 2024
PT Pupuk Indonesia (Persero) is once again reaffirming its commitment to tackle future challenges through a variety of innovative projects. The main focus for Pupuk Indonesia is to prioritize innovations that drive growth and sustainability in the industry. Rahmad Pribadi, the CEO of Pupuk Indonesia, emphasized that innovation in the fertilizer industry is vital, especially given Pupuk Indonesia's strategic role in supporting national food security. This is particularly important amid the shifting global economy, geopolitical changes, and climate change that impact the global food supply chain. "This is an innovation convention event organized by the Pupuk Indonesia Group. Innovations are selected starting from the subsidiary level, then aggregated and competed again at the holding level. This aggregation and competition process is designed to facilitate knowledge transfer among subsidiaries, allowing discoveries from one subsidiary to be applied elsewhere within the Pupuk Indonesia Group ecosystem," Rahmad explained during the Pupuk Indonesia Quality & Innovation (PIQI) 2024 event in Palembang on Wednesday (September 4, 2024). The various innovations from Pupuk Indonesia have proven to enhance operational performance positively. This success has been recognized both nationally and globally, with Pupuk Indonesia making it onto the list of the top 100 companies in Indonesia according to Fortune Indonesia magazine, and ranking among the top 500 companies in ASEAN as per Fortune magazine in 2024. To maintain this positive performance, Pupuk Indonesia plans to further promote an innovation culture, including through annual innovation conventions like PIQI 2024. The finalists of PIQI 2024 have shown they can meet the business needs and challenges at Pupuk Indonesia, addressing aspects like operational reliability, cost reduction, product competitiveness, and organizational effectiveness.
For example, Pupuk Sriwidjaja Palembang has come up with an innovative tweak to their hydraulic power unit, which speeds up the repair time for hydraulic actuators—essential components for controlling various equipment and machines in the Urea fertilizer plant. Before this innovation, fixing a hydraulic actuator took a whopping 336 hours and required third-party help. Now, repairs can be done in-house and only take 16 hours, boosting operational reliability, efficiency, and production optimization. Similarly, Pupuk Kaltim has pushed for energy efficiency by optimizing the coal ratio in their boiler, leading to positive impacts on the company's budget efficiency. Another cool innovation is the Phosgreen fertilizer from Petrokimia Gresik. This phosphate-based fertilizer has a modified raw material ratio, allowing it to offer competitive pricing while maintaining quality, making non-subsidized fertilizer more affordable for farmers. Meanwhile, Pupuk Indonesia has successfully developed an integrated digital application at the kiosk level (i-Pubers) to reduce correction values and speed up the subsidy billing process. This app is already in use at over 27,000 kiosks, making it easier for farmers to redeem subsidized fertilizer. This year, PIQI 2024 is themed “Green Growth,” focusing on innovations that foster business growth while being environmentally friendly. There are at least 4,684 innovative works from 6,531 employees of Pupuk Indonesia and its subsidiaries. The innovations collected for PIQI 2024 are categorized into three groups: Growth, Digital, and Sustainability, based on their operational business needs and societal benefits. Over the three years of this initiative, the recorded benefit contribution has reached a significant 1.8 trillion.
