Pupuk Kaltim Invests Rp 900 Billion in Factory Revamp, Saving 16% on Gas

JAKARTA - PT Pupuk Kalimantan Timur (Kaltim) states that the Rp 900 billion revamping project for Ammonia Plant-2 is funded entirely from the company’s internal resources.

Pupuk Kaltim’s Corporate Secretary, Anggono Wijaya, explained that the project does not utilise the State Revenue and Expenditure Budget (APBN) at all.

“The funding for this revamping is purely from the company’s internal costs or PKT (Pupuk Kaltim), through annual investments,” said Anggono during a press conference on the First Quarter Report for 2026 in Menteng, Jakarta, on Wednesday (29/4/2026).

With this revamping, natural gas usage decreases by 4 Million Metric British Thermal Units (MMBTu) per tonne, equivalent to about 10 to 16 percent compared to previous levels.

“So, with the factory rejuvenation, the plant becomes more efficient,” Anggono stated.

Complementing Anggono, Pupuk Kaltim’s Vice President of Corporate Development, Astri Agustina, noted that the revamping project employs two financing schemes.

She explained that the Ammonia Plant-2 revamp is driven by the plant’s 40-year age.

The ageing machinery condition results in high energy consumption, necessitating reduction efforts.

In addition to the 4 MMBTu per tonne drop in gas consumption, the revamp also reduces carbon dioxide emissions by up to 110,000 tonnes per year.

Referring to data from the Ministry of Agriculture, the revamping could save the company up to Rp 200 billion annually.

Agriculture Minister Andi Amran Sulaiman stated that the factory rejuvenation is expected to boost domestic fertiliser productivity.

“This, if I’m not mistaken, saves 16 percent. On behalf of Indonesia’s 160 million farmers, we thank Pupuk Indonesia so that our production jumps and a delta is created. Additional profit of Rp 132 trillion in 2025. That’s the addition,” said Amran in Bontang, East Kalimantan, on Thursday (29/1/2026).