JAKARTA (rambuenergy) – PT Petrokimia Gresik (PKG) has secured loan worth Rp1.5 trillion from PT Bank Sumitomo Mitsui Indonesia, which will be used to build an ammonia plant. The loan agreement was signed on Dec. 23, 2014.
The loan is part of funds needed by the company to build the ammonia plant which is estimated to requirement investment of Rp8.1 trillion. The value is based on an exchange rate of Rp12,200 per one US dollar.
Petrokimia Gresik said about 70 percent of the funds need or Rp5.6 trillion will come from bank loan, while 30 percent or Rp2.5 trillion will come from internal cash flow of Petrokimia Gresik.
The company needs ammonia of 850,000 tons per year. The product is raw material to produce various types of fertilizers. Currently, the company’s capacity reaches only 445,000 tons per year, therefore the company imported the remaining 400,000 tons/year of ammonia.(*)