BONTANG, OCTOBER 3, 2022 – The construction of the Ammonium Nitrate plant belonging to State-owned Enterprise PT DAHANA and Pupuk Kaltim in Bontang in East Kalimantan is increasingly showing significant progress. This Ammonium Nitrate plant which is owned and managed by state-owned enterprises will be a support for economic independence in the explosives industry in the commercial (mining) and defense sectors.

This was stated by the Secretary General of the Indonesian Ministry of Defense and President Commissioner of PT DAHANA, Air Vice Marshal Donny Ermawan Taufanto, M.D.S on October 3, 2022. According to Mr Taufanto, the construction of the Ammonium Nitrate plant is Indonesia’s step to reduce dependence on imported products, particularly in terms of raw materials for the explosives industry. He also said that the plant construction was in line with the expectations conveyed by President Joko Widodo regarding the independence of the country’s industry.

“As directed by the President, we must lower the use of imported products. Therefore, the Ammonium nitrate plant is very strategic and we must collaboratively support the construction process so that it can be completed according to the target. This is important for the national interest, both for the fulfillment of ammonium nitrate for commercial explosives and defense purposes,” said Mr Taufanto.

Mr Taufanto added that owing to a production capacity of up to 75,000 tons per year, the Ammonium Nitrate plant is expected to cut down imports of explosive raw materials, create added value for domestic products, create jobs for the Indonesian people, especially the Bontang community, and strengthen the independence of Indonesia’s Main Equipment of Defence System (Alutsista).

“We ask for prayers and support to all parties for the successful construction of this Ammonium Nitrate plant. Hopefully the presence of the plant will bring blessings, both to the people of Bontang in particular, and to support the independence of Indonesia’s explosives,” he concluded.

As is known, PT DAHANA and PT Pupuk Kalimantan Timur jointly signed a Master Agreement and Memorandum of Understanding witnessed by President Jokowi in November 2015. After going through some dynamics, PT DAHANA and Pupuk Kaltim finally agreed to sign a Joint Venture Agreement in 2019.

The construction of the Ammonium nitrate plant is executed by a consortium work of PT Wijaya Karya (Persero) and SEDIN Engineering on an area of ​​± 6 (six) hectares. The total investment for the construction of the plant amounted to ±1.1 trillion Rupiah, funding which was obtained from investment loans from state-owned banks and equity from each shareholder. The construction is scheduled to be completed in early 2023. The plant will be managed by PT Kaltim Ammonium Nitrate (KAN), which is a joint venture between DAHANA and Pupuk Kaltim.

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Juli Jajuli

Senior Manager Legal & Corporate Communications


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