BONTANG - Fertiliser producer PT Pupuk Kalimantan Timur or Pupuk Kaltim and state-owned explosives maker PT Dahana (Persero) have officially established a joint venture (JV) called PT Kaltim Amonium Nitrat (KAN).
The JV is part of Pupuk Kaltim's natural gas-based downstreaming program. On Tuesday (22/9) both companies launched a pile load test to mark the start of the development of KAN's ammonium nitrate plant in the Kaltim Industrial Estate (KIE) Industrial Area, Bontang, East Kalimantan which was attended by Bontang Mayor Neni Moerniani.
According to Pupuk Kaltim CEO Rahmat Pribadi, the ammonium nitrate plant is expected to support national food security, contribute to the economy, and create jobs for people in Bontang.
"Pupuk Kaltim is enthusiastic and confident that the natural gas-based downstreaming programme through PT KAN can support the economy, particularly for the people of Bontang," said Mr Pribadi in an official statement on the Ministry of State-owned Enterprises' website, Thursday (24/9).
KAN's plant, said Dahana CEO Budi Antono, is expected to commence operation in 2022 and will have a production capacity of 75,000 tonnes per year.
"With a production capacity of 75,000 tonnes per year, Dahana will no longer import ammonium nitrat, which means it can save foreign exchange reserves. As for the people of Bontang, PT KAN is committed to create jobs and opportunities as widely as possible," Mr Antono explained. (MS)