KNI Produces 3.9 Million Tonnes of Ammonium Nitrate Through End of 2025
PT Kaltim Nitrate Indonesia (KNI) has recorded production of more than 3.9 million metric tonnes of ammonium nitrate and exported over 670 kilotonnes of the product to international markets from 2012 through the end of 2025. With an installed capacity of 366 kilotonnes per year, KNI is a major supplier of ammonium nitrate for the national mining industry while positioning Indonesia as an exporter of the product. The company also relies on local labour, with approximately 85 percent of its employees residing in Bontang, East Kalimantan.
President Director of PT Kaltim Nitrate Indonesia Twedy Nasution stated that KNI’s presence has helped reduce Indonesia’s dependence on ammonium nitrate imports, which is the primary raw material for manufacturing industrial explosives for the mining sector. ‘KNI demonstrates what Indonesia can achieve in strategic industrial sectors, transforming import dependency into reliable domestic supply,’ Twedy said in a statement in Jakarta on Monday. He emphasised that none of this would have been possible without the expertise and dedication of all KNI personnel. ‘After 25 years, my greatest pride is not the tonnage we have produced, but the Indonesian team in Bontang that made every tonne possible,’ he said.
Before KNI was established, national ammonium nitrate needs were met through imports for several decades, creating vulnerability in the supply of critical raw materials for mining activities and other strategic sectors. Founded in 2001 through a partnership between PT Armindo Prima and Australian company Orica, KNI has grown into a production facility that applies international safety and operational standards.
President Director of PT Armindo Prima Winniarlita Irfaie said KNI’s establishment stemmed from efforts to strengthen national industrial independence by fulfilling ammonium nitrate needs domestically. ‘This journey shows that Indonesia has the capability to build strategic industries independently,’ she said. Throughout its operations, KNI has continuously improved production efficiency and reliability. In 2024, the company recorded its highest annual production of approximately 347 kilotonnes, reflecting sustained productivity improvements.
Managing Director and CEO of Orica Sanjeev Gandhi said KNI is an example of successful long-term collaboration between local and global partners in building national industrial capacity. According to him, the facility has helped transform Indonesia’s ammonium nitrate supply from import-dependent to being supported by more resilient and reliable domestic production. Beyond strengthening production capacity, KNI has also enhanced its sustainability aspects. In 2023, the company implemented secondary abatement technology capable of reducing emissions by approximately 9.6 percent, equivalent to 373 kilotonnes of carbon dioxide equivalent per year.
KNI Director and Deputy Director of PT Armindo Prima Chrisna Deva said the company is now focused on supporting the growth of the mining sector and the national downstream processing agenda. ‘We see great opportunities to expand capabilities to support the national mining and downstream agenda,’ he said. Going forward, KNI aims to enhance national industrial competitiveness by strengthening domestic supply resilience, improving environmental performance, and supporting the evolving needs of the mining sector.