REPUBLIKA.CO.ID, GRESIK -- Indonesian government through PT Petrokimia Gresik and the Kingdom of Jordan who is represented by Jordan Posphate Mines Co, Plc inagurated a joint venture company, PT Petro Jordan Abadi (PJA).

This company is producing phosphate for fertilizer as well as a number of other chemical materials. Indonesia and Jordan hold 50 percent shares respectively.

President Director of PJA, Purnomo Tri Nusantoro said that the new company had a positive impact for both parties. PJA will reduce the dependence on imports of phosphoric acid as one of main raw materials for fertilizer. It could save 75 million USD of foreign exchanges per year.

"Jordan can increase its export of phosphate rocks as raw material for phosphoric acid," Nusantoro said recently.

PJA will have five products, namely phosphoric acid with a capacity of 200,000 metric tonnes (MT) per year as major product. Next, sulfuric acid (600,000 MT per year), gypsum granulate (550,000 MT per year), purified gymsum (550,000 MT per year) for cement industry and fluosilikat acid as raw material for aluminum fluoride.

The joint company spends an investment of 188.6 million USD from Petrokimia Gresik's equity fund and Jordan Phosphate Mines, as well as bank loans from syndicated loan of Bank Mandiri worth 129 million USD with debt of equity ratio of 70:30 percent. The construction of PJA plant will be carried out by the consortium of PT Rekayasa Industri and Wuhuan Engineering on area of 18.3 hectares started on Jan 10, 2012 up to Aug 31, 2014.

Minister of State Owned Enterprises, Dahlan Iskan in his opening speech said that it was a big achievement that would increase the cooperation between Indonesia and Jordan in economic sector. He came with Minister of Industry, Trade and Supply of the Hashemite Kingdom of Jordan, Hatem Al-Halawani, as well as Deputy Governor of east Java, Saifullah Yusuf.

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