Pupuk Kaltim boosts community economy with mushroom cultivation program

PT Pupuk Kalimantan Timur (Pupuk Kaltim) is strengthening its community empowerment programs by developing circular economy-based businesses, with mushroom cultivation being a key focus. The initiative aims to foster economic independence through integrated mushroom farming and enhanced community capacity.

Rezha Abdillah, VP of TJSL at Pupuk Kaltim, stated the company strives to create shared value through empowerment programs that deliver both economic and social benefits. "This is expected to strengthen inclusive economic and social development," Rezha said in a written statement. This commitment was recognized with Pupuk Kaltim receiving the Asia Responsible Enterprise Awards (AREA) 2026 in the Social Empowerment category in Malaysia, their seventh award since 2019 for community empowerment.

This year, Pupuk Kaltim is implementing the "Cendawan Juara" (Mushroom Champion) program in Guntung Village, Bontang City. The program focuses on building community economic independence through mushroom cultivation combined with human resource capacity building. Rezha explained that the initiative aligns with the company's commitment to supporting the SDGs, particularly poverty alleviation, community welfare, decent job creation, responsible consumption and production, and strengthening development partnerships.

The Cendawan Juara program employs a circular economy approach, utilizing mushroom baglog waste as compost and developing mushroom-based processed products. Mentorship is provided from 2025 to 2029 to ensure mentored groups can develop their businesses independently and sustainably. The program involves 29 residents, mostly seniors, who receive training in cultivation techniques, group management, business development, and processing harvested mushrooms into value-added products.

Rezha highlighted that the program's activities, including mushroom cultivation, compost production from waste, and processed food creation, are designed to be integrated. This approach optimizes resource use and reduces waste, aiming to broaden economic benefits for the surrounding community. An innovation includes a mushroom drum capable of holding 30-35 baglogs. Through Cendawan Juara, Pupuk Kaltim aims to demonstrate how social innovations developed with the community can provide real solutions for improving welfare, strengthening local economic resilience, and promoting sustainable development.