PKT TO PRODUCE 2.2 MILLION TONS OF FERTILIZER IN 2009

Jakarta, Aug 11 (ANTARA) - Fertilizer company PT Pupuk Kaltim (PKT) is ready to produce 2.2 million tons of urea fertilizer in 2009, its president director, Hidayat Nyakman, said here on Thursday.

He said the company could produce up to 2.5 million tons next year if gas -- the main feedstock -- was abundantly available.

"Our plan to produce such a big amount of urea fertilizer is to overcome the subsidized fertilizer scarcities," Hidayat said at a discussion on the national fertilizer industry organized by the Business Competition Monitoring Commission (KPPU).

He said, under the national plan to produce 7 million tons of fertilizer next year, PT Kaltim would turn out 6.5 million tons but 4 million tons of the total would be marketed as subsidized fertilizer.

According to Hidayat, PT Pupuk Kaltim in Bontang, East Kalimantan, was currently supplying fertilizer to 28 districts in East Java, Kalimantan, Sulawesi, Bali, and West Nusa Tenggara.

Commenting on the fertilizer distribution system applied by his company, Hidayat said it was a closed Definitive Plan for Group Demand (RDKK) system because it was considered to be an effective one.

Hidayat added that 90 percent of subsidized fertilizer distributors in East Java were applying the RDKK system, while in Bali it had been applied for three years.

"To date, RDKK is one of the best solutions for subsidized fertilizer distribution," Hidayat said.

But he added non-subsidized fertilizer was distributed in many ways and directly to consumers.

However, Hidayat said that non-subsidized fertilizer distribution was done under the supervision of Sucofindo to anticipate illegal export.