Minister Bahlil conveyed that this support for Petrokimia Gresik’s soda ash factory was in accordance with an instruction from the President to support SOEs or national private companies that produce imported substitute products. Petrokimia Gresik’s soda ash factory will reduce dependence on imports.

“The national soda ash demand is 1 million tons per year and is met by imports. I have come here to ensure that this project proceeds,” said Bahlil.

He hopes that other SOEs can also optimize their industrial by-products to give added value, as Petrokimia Gresik has done through related diversified industry strategy. The soda ash factory will utilize the downstream product from the ammonia-urea factory in the form of CO_2, which is processed into soda ash. This effort wil increase the revenue of SOEs and its benefit will be felt by the community.

“Therefore, we will support the establishment of Petrokimia Gresik’s soda ash factory both in terms of fiscal incentive policy and official permission,” said Bahlil.

Petrokimia Gresik president director Dwi Satriyo Annurogo stated that during the preparation for the soda ash factory, Petrokimia Gresik always coordinated with the Investment Ministry for official permission and administration.

“Alhamdulillah [thank God], the Investment Ministry has always fully supported us, so that Insya Allah [God Willing] the investment project, which is planned to be built on 20 hectares area owned by ​​Petrokimia Gresik, can be completed,” said Dwi Satriyo.

The soda ash factory, which has a capacity of 300 thousand tons per year and is targeted to begin operating at the end of July 2024, is a way for Petrokimia Gresik to support the national economy, especially the chemical industry.

There is a considerable need for soda ash in the country as it is the main raw material for various products that we encounter every day, such as soaps, detergents, papers, textiles, ceramics, glass and their derivatives and other products.

“So the market share is very large, especially for the domestic market. However, it is not an impossibility that Petrokimia Gresik’s soda ash factory can serve the needs of the global market,” closed Dwi Satriyo.

Earlier, to successfully establish the soda ash factory, Petrokimia Gresik signed a memorandum of understanding (MoU) with PT Garam (Persero) and multinational company Unilever Asia Pte. Ltd. This MoU is aimed at ensuring the business ecosystem of the soda ash factory, where Petrokimia Gresik will purchase industrial salt as a raw material for soda ash as well as cooperate with Unilever Asia as off-taker that will absorb soda ash product.

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