Jakarta. State-owned fertilizer producer Pupuk Indonesia has begun construction of Indonesia’s first ammonium nitrate–based NPK fertilizer plant in West Java, a project aimed at cutting imports and strengthening domestic fertilizer supply.

The project is being developed by subsidiaries Pupuk Kujang Cikampek and Rekayasa Industri, with construction launched at the Kujang Cikampek industrial estate.

“The groundbreaking of this NPK nitrate plant marks an important milestone, as it will lay the foundation for a new chapter in the national fertilizer and agricultural industries. This is a sustained effort toward achieving food self-sufficiency,” Rahmad said in a press statement on Wednesday.

Built on a five-hectare site, the plant is scheduled to be fully operational in August 2027. It will have an annual production capacity of 100,000 metric tons, equivalent to about 25 percent of national demand for NPK nitrate fertilizer, which is currently met largely through imports.

Once operational, the facility is expected to save the country Rp 700 billion to Rp 1 trillion ($41.73 million–$59.63 million) annually in foreign exchange through import substitution. The project also strengthens integration within the group, with ammonium nitrate feedstock supplied by Pupuk Kujang subsidiary Multi Nitrotama Kimia, absorbing up to 25,000 tons per year to improve efficiency and competitiveness.

Rahmad said the NPK nitrate plant is one of seven facilities Pupuk Indonesia plans to build.

Pupuk Kujang President Director Budi Santoso Syarif said nitrate-based NPK fertilizer offers superior nutrient absorption efficiency and is more environmentally friendly, helping boost farm productivity while supporting sustainable agriculture. 

Trials conducted since early 2024 showed the fertilizer increased agricultural productivity, particularly in horticulture, by up to 11.5%, with nitrate-based nitrogen considered more stable and supportive of sustainable farming practices.

From an economic standpoint, the project is expected to create 130 jobs during construction and 125 jobs once operational. It will also carry a local content level of 25%, equivalent to Rp 140 billion, and is being overseen by the Financial and Development Supervisory Agency (BPKP) to ensure strong governance.

Looking ahead, Pupuk Indonesia reaffirmed its commitment to revitalizing the national fertilizer industry as mandated under Presidential Regulation No. 113/2025, including revamping existing plants and building new facilities to keep fertilizers affordable at home.