Indonesian President Joko Widodo inaugurated the Ammonium Nitrate Plant owned by PT DAHANA – PT Pupuk Kaltim in Bontang on February 29, 2024. Ammonium nitrate is the main raw material required in the production of explosives, especially for use in the mining sector.

“The explosives produced by DAHANA use ammonium nitrate as the raw material such as cartridge emulsion and bulk emulsion explosives which are widely used in the mining sector,” said Wildan Widarman, President Director of PT DAHANA in Jakarta (06/03).

DAHANA’s explosive products and blasting services are used in a daily basis by various industries in Indonesia ranging from the general mining sector, both metals, minerals and coal; quarry sectors such as the cement industry and andesite quarrying; construction projects such as dams, tunnels, irrigation, demolition of old buildings, deepening of ports; oil and gas sector for seismic operations; and also military operations.

The presence of the Ammonium Nitrate Plant with a production capacity of 75,000 MT/year, will certainly bring a breath of fresh air to DAHANA and the blasting industry in the country. This is due to the fact that, to cover the current need for ammonium nitrate, Indonesia still depends on imported supplies.

“The domestic need for ammonium nitrate is 580,000 tons per year. Meanwhile, 79% of the total supply comes from local producers and 21% from imports,” said Mr Widarman.

This plant is the first ammonium nitrate factory owned and managed by an SOE to support energy and industrial independence, especially for national explosives, benefitting from domestic products with high local content, and to reduce dependence on imports.

The Ammonium Nitrate Plant is expected to help increase DAHANA’s competitive advantage in a market where competition is increasingly fierce.

“Limited domestic supply and high market demand for ammonium nitrate make the existence of this Ammonium Nitrate Plant very important for DAHANA’s business growth,” concluded Mr Widarman.