PT Pupuk Indonesia Holding Company (PIHC), a state owned fertilizer company is planning to raise Rp10 trillion ($735.29 million) by issuing bonds in the first quarter of 2017. A part of proceeds will be used to refinance the company’s debts.
The other portion of the proceeds will be used to revitalise two of its fertilizer plants to increase their output in order to meet domestic demand, which is estimated to reach 9.55 million tons this year.
Pamoengkas added that Kaltim V needs $590 million while Pusri II fertilizer plant will need $580 million – of investment.
Pupuk Indonesia also plans to develop Amorea 2 plant in East Java with total investment of $500 million. Work for on all the plants are expected to be completed by 2017.
Currently, Pupuk Indonesia produces 14 million tons of fertilizers per annum and expects to raise this to 19 million tons per year by 2017. The company is hoping to post a net profit of Rp5 trillion and Rp80 trillion in revenues this year, compared to net profit of Rp3.3 trillion and revenues of Rp66 trillion in 2015.