Pupuk Kaltim: Soda Ash Project to Substitute Imports and Accelerate Downstreaming

Jakarta (ANTARA) - PT Pupuk Kalimantan Timur (Pupuk Kaltim/PKT) is confident that the development of the soda ash factory currently under construction represents a strategic step in reducing import dependency while accelerating the downstreaming of ammonia-based industries domestically. VP of Business Development at Pupuk Kaltim, Astri Agustina, in Jakarta on Wednesday, explained that the construction of the soda ash factory is driven by the high national demand that still relies on foreign supplies. Based on data from the Central Statistics Agency (BPS), Indonesia will continue to import around 1 million tonnes of soda ash per year until 2025. “To reduce Indonesia’s dependency on soda ash imports, this can be seen from BPS data showing that until 2025, Indonesia will still import about 1 million tonnes of soda ash from abroad. This is also part of the downstreaming of ammonia products that increases value added,” she said. She added that this project will enhance value added by utilising 105,000 tonnes of ammonia per year. In addition, the factory will support the company’s decarbonisation programme by absorbing carbon dioxide (CO2) emissions from existing plants, up to 174,000 tonnes per year, to be used as raw material for production. Not only will it produce soda ash, but the facility will also manufacture ammonium chloride, which can be used as a raw material for nitrogen fertiliser or applied directly as fertiliser. Furthermore, from a business perspective, the presence of this factory is expected to increase the company’s revenue through sales of soda ash and ammonium chloride, while expanding the product portfolio and new markets. Astri outlined that the production capacity of the soda ash and ammonium chloride factory is 300,000 tonnes per year each. The project is located in the Kaltim Industrial Estate (KIE) in Bontang, East Kalimantan, effective from June 2025, and targeted to commence commercial operations in March 2028. She further explained that this project will provide significant multiplier effects. From the government’s side, it has the potential to increase state revenues, drive economic growth through higher Domestic Component Levels (TKDN), and save foreign exchange through import substitution. Meanwhile, from a social perspective, the project is estimated to absorb up to 800 workers during construction and around 100 during operations. Additionally, this project will increase the utilisation of industrial salt to 350,000 tonnes per year. Besides this project, the company is also carrying out a revamp of Ammonia Plant 2 and preparing expansions in fertiliser production capacity to support future industrial needs.