JAKARTA (Yosefardi) – State fertilizer company PT Pupuk Indonesia is reportedly preparing bonds issue worth Rp3 trillion, scheduled for second half of this year, Bisnis.com reported.
The bond, the first time program, will be issued in three series.
Pupuk Indonesia’s revenue from subsidised fertiliser to the food sector was Rp10 trillion, forming 18% of its total revenue.
In 2013, the company received subsidies of Rp20 trillion, which accounted for 35% of its total revenue.
Fertiliser manufacturing also receives priority in gas allocation from Ministry of Natural Resources. This is particularly important because gas accounts for 50% of Pupuk Indonesia’s production cost and there is a tight supply of gas in the country.