PEFINDO has assigned PT Pupuk Kalimantan Timur (PPKT)’s rating at idAAA with stable outlook

(July 29, 2026)--The corporate rating is mainly driven by the very strong likelihood of support from PT Pupuk Indonesia (Persero) (PIHC, rated idAAA with a stable outlook) as the parent company. The Company's standalone credit profile reflects its very strong business position, secured gas supply and optimized operations as well as very strong financial profile, but is constrained by the Company’s exposure to the volatility of commodity prices.

The rating may be lowered if PPKT aggressively finances its expansion with substantially larger debt than projected without a corresponding improvement in business performance. Any unfavorable change in the subsidy scheme and the distribution area for subsidized fertilizer that represents lower support from PIHC, and significantly lower-than-anticipated global fertilizer prices will also put pressure on the Company’s rating. Any rating change of the Parent may also trigger a similar rating action to PPKT.

PPKT is considered one of the largest fertilizer producers in the country, with a focus on ammonia and urea. The Company operates several production facilities in Bontang, East Kalimantan, consisting of five ammonia and urea fertilizer plants with a total annual capacity of 2.7 and 3.4 million tons of ammonia and urea, respectively, and two Nitrogen-Phosphorus-Potassium (NPK) plants with a total annual capacity of 350,000 tons (150,000 tons of mechanical blending NPK and 200,000 tons of fusion NPK). The plants in Bontang are integrated with ports and warehouses, which facilitate product distribution to both domestic and export markets. As of March 31, 2026, PPKT’s major shareholder was PIHC, the state-owned holding company for the fertilizer sector, with 99.9% ownership. (ends)