AAF fertilizer plant to be relocated to East Java

The assets and production facilities of the Aceh-based Asean Aceh Ferilizer (AAF) plant which has been closed down due to the lack of gas supply has been taken over by state owned PT Petrokimia Gresik, according to a senior official at the ministry of industry.

Director General of Agro and Chemical Industries, Benny Wahyudi said in Jakarta on Thursday that Petrokimia Gresik would relocate the AAF fertilizer factory to its industrial complex in Gresik, East Java.

"The relocation of the AAF factory will enable the company to increase its capability to meet the fertilizer demand in the province," he was quoted as saying by Kompas. He said that Petrokimia produced about 460,000 tons of fertilizer a year, far below the province's demand which reached about 1.2 million tons a year.

The Indonesian government decided to close down the operation of AAF plant last year due to the lack of gas supply. AAF was established in early 1980s as part of cooperation programs among members of the Association of Southeast Asian countries (ASEAN). (*)