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PT Kaltim Amonium Nitrate (KAN) held a socialization for the construction of the Ammonium Nitrate Plant in Bontang. The socialization to the public and related shareholders in Bontang took place Wednesday, January 8, 2020 at the Grand Equator Hotel. The socialization was also attended by representatives of the Bontang City Government.

PT Kaltim Amonium Nitrate (KAN) is a joint venture between PT DAHANA (Persero) and PT Pupuk Kalimantan Timur. In accordance with the results of the tender, the construction of the plant will be carried out by a consortium of PT Wijaya Karya (Persero)- SEDIN Engineering that will serve as the contractor for the construction of the Ammonium Nitrate Plant.

The six-hectare plant construction located in an industrial estate owned by PT Kaltim Industrial Estate (IEC) is planned to be completed in 30 months. This plant will have a production capacity of 75 thousand tons per year comprising of Ammonium Nitrate and Nitric Acid products. Total investment of the AN plant construction is approximately 1.1 trillion rupiahs under funding of the SOE’s Banking investment credit of each shareholder.

President Director of PT Kaltim Ammonium Nitrate Bimo Noesantoropoetro said that the Bontang AN plant is the a response to the domestic Ammonium Nitrate demand.

"It is expected that this plant can meet the needs of domestic ammonium nitrate as a raw material for high energy and its derivatives," he explained.

Indonesian people should be proud as they will have an Ammonium Nitrate Plant which will support economic independence in term of explosive industry which is independently managed and owned by state-owned companies. The said Ammonium Nitrate factory has become the nation's 30-year dream, owing to the fact that independence of the defense industry is very important for national sovereignty.

Meanwhile, President Director of PT DAHANA (Persero) Budi Antono said that his company along with PT Pupuk Kalimantan Timur had conducted related comparative studies and studies on various aspects such as markets, technology, legislation, availability of raw materials and so on. The studies were under assistance of independent consultants with international reputation.

"In order to obtain a reliable and proven AN production process technology, PT DAHANA (Persero) and PT Pupuk Kalimantan Timur have collaborated with BPPT to assist companies in assessment and review of various aspects related to AN technology selection and recommendation on the appropriate technology to be used in AN factories, "said Budi Antono.

Based on a carefully prepared studies, the Ammonium Nitrate Plant will be built in Bontang, East Kalimantan, with a capacity of up to 75,000 tons AN per year. This is expected to grow and develop other industrial derivatives, save foreign exchange from AN imports, create added value in domestic products, and last but not least create new jobs for the people of Indonesia, especially the Bontang people.