The Industry Ministry revealed on Monday that the government would need about Rp 70.6 trillion (US$7.48 billion) to revitalize the country's sugar and fertilizer industries over the next five years in order to attain food sustainability.
"Rp 47.1 trillion would be used to finance the fertilizer industry's revitalization, while the rest would be spent on the sugar industry," Industry Minister MS. Hidayat told reporters during his official announcement on the Industry Ministry's 100-day program in Jakarta on Monday.
Hidayat explained that Rp 45.2 trillion would be used to finance revitalization of urea factories while Rp 1.9 trillion for NPK factories.
According to Hidayat, fertilizer constitutes an important material for the agriculture sector and demand for the product increases every year.
"However, several fertilizer factories are now in a poor condition and are no longer efficient,” he said, adding that the government predicted fertilizer production from those factories would not be enough to fulfill demand in the country.
Revitalization of the fertilizer industry is expected to help meet the domestic fertilizer consumption, which was projected to jump to 23.2 million tons by the year 2025 from only about 1.4 million tons per year in 2009.
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