Jakarta. Pupuk Kalimantan Timur (Kaltim), the subsidiary of state-owned fertilizer maker Pupuk Indonesia, will revamp its Ammonia-2 plant.

Pupuk Kaltim as well as Tripatra Engineers & Constructor signed Wednesday an ammonia plant-2 project EPC contract. 

“This revamping of ammonia plant-2 is crucial. We are aware of how the global challenges have forced us to be more efficient, competitive, and profitable. But at the same time, we have to be more environmentally-friendly and become less carbon society or economy,” Rachmad Pribadi, the president director at Pupuk Indonesia, was quoted as saying in a recent press statement.

“This can set an example of how we can enhance the efficiency of an existing facility that is no longer efficient, while also making it environmentally friendly,” Rachmad said.

According to Pupuk Kaltim president director Budi Wahju Soesilo, the revamping is set to finish by the end of 2025. The revamped ammonia plant will also use low-power technology. Budi Wahyu added: “This is Pupuk Kaltim’s oldest plant which dates back to 1984. By changing the technology, the plant will be more efficient in energy use. This will make Pupuk Kaltim’s urea products and ammonia more competitive so they can compete in the global market.”

The Pupuk Kaltim boss also said that the project aligned with the environment, social, and governance (ESG) principles.

“We are undertaking a number of initiatives to achieve the decarbonization target. Starting from establishing a soda ash plant, tree planting involving local communities, renewable energy use, among others, by exploring clean ammonia technology, as well as the revamping of an old plant to cut down energy consumption,” Budi Wahju said.

“These decarbonization efforts aim to cut carbon emissions by 32 percent in 2030 to support the government’s goal towards net zero emission,” he said.

Raymond Naldi Rasfuldi, the president director & chief executive officer at Tripatra Engineers & Constructors, also commented on the project,

“This is Indonesia’s success. To be able to fix and improve an existing plant to remain competitive and complement the emission reduction efforts that Indonesia is aiming for,” Raymond said.

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