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Bontang, May 24, 2022. The Ammonium Nitrate Plant owned by DAHANA – Pupuk Kaltim is currently in the construction stage. The plant, which has a production capacity of up to 75,000 tons of ammonium nitrate per year, is managed by PT Kaltim Ammonium Nitrate (KAN), a joint venture between PT DAHANA (Persero) and PT Pupuk Kalimantan Timur. The factory, located in Bontang, is targeted to be completed and will start production at the end of 2022.

This was informed during a working visit by the Board of Directors and Commissioners of PT DAHANA to the Bontang Ammonium Nitrate Plant. The group was led directly by President Director Wildan Widarman accompanied by Director of Technology & Development Suhendra Yusuf RPN along with members of the Board of Commissioners Wahyudi Hidayat, Rina Moreta and Rizky Olivia Nasution.

"We are optimistic that the Ammonium Nitrate Plant will be completed by the end of 2022," said Mr Widarman, President Director of PT DAHANA.

The presence of the Ammonium Nitrate Factory located in the PT KIE Bontang Industrial Estate, East Kalimantan will bring an impact on reducing imports of explosive raw materials and a cut on the country's foreign exchange allocated for import activities. Apart from that, the independent construction of the Ammonium Nitrate plant can develop and strengthen further efforts for the independent procurement of the Indonesian Main Weapon System Equipment (Alutsista).

 

Mr Widarman also stated that PT DAHANA and PT Pupuk Kaltim, with involvement of involving internationally reputable consultants had conducted comparative studies and made researches on various aspects such as technology selection, availability of raw materials, laws and regulations, and the market before prior to construction of the said plant.

"Based on the results of our study, this ammonium nitrate plant can save foreign exchange from AN imports, create added value for domestic products, and of course create jobs for the Indonesian people, especially the Bontang people," said Mr Widarman.

Meanwhile, DAHANA Commissioner Wahyudi Hidayat hoped that all parties would support this strategic defense industry project.

"We must support this project together to make sure it can be completed according to the set target. This is important for the national interest, both for the fulfillment of ammonium nitrate for commercial purposes and for defense purposes," explained Mr Hidayat.

Based on the results of the auction, the entire process of construction of the AN plant was carried out by a consortium of PT Wijaya Karya (Persero) - SEDIN Engineering on an area of ​​± 6 (six) hectares. The total investment for the construction of the AN plant amounted to ±1.1 trillion rupiahs, which was obtained from investment loans of state-owned banks and equity from each shareholder.

 

After going through various dynamics since the signing of the Memorandum of Understanding and the signing of the Master Agreement witnessed by the President of the Republic of Indonesia Joko Widodo in November 2015, the collaboration between PT DAHANA and PT Pupuk Kalimantan Timur has progressed further as marked by the signing of a Joint Venture Agreement (JVA) in 2019. After some interruption due to the Covid-19 outbreak, this project is running again with the Pile Load Test stage in September 2020 and is currently advancing to the construction stage.