President Joko “Jokowi” Widodo inaugurated PT Kaltim Amonium Nitrat (KAN), an ammonium nitrate plant operating through a joint venture between PT Pupuk Kaltim and PT Dahana in the Industrial Estate Area (KIE) of Bontang, East Kalimantan on Thursday, February 29, 2024.

This significant milestone marks the completion of a project requiring a substantial investment of Rp1.2 trillion (US$76.4 million), aimed at bolstering Indonesia's domestic production capabilities in the field of explosive materials.

The newly inaugurated plant boasts an annual production capacity of 75,000 tons, with an impressive domestic content level reaching 93.7 percent. President Jokowi, speaking at the inauguration ceremony, emphasized the strategic importance of this industrial endeavor in enhancing Indonesia's self-sufficiency and productivity in the agricultural sector.

"With the establishment of the Kaltim Amonium Nitrate industry, we anticipate greater self-reliance and productivity in the agricultural sector, and the Rp1.2 trillion investment will not be in vain," President Jokowi said during the inauguration event in Bontang.

The establishment of the ammonium nitrate plant represents a significant step towards reducing Indonesia's dependence on imported products, particularly in the areas of industrial raw materials and explosives. The domestic demand for ammonium nitrate stands at 560,000 tons, while the current production capacity is at 300,000 tons, indicating a substantial portion still reliant on imports. By ramping up domestic production, the newly inaugurated plant is poised to significantly reduce the nation's reliance on imports in various sectors, including mining, defense, and fertilizer industries.

President Jokowi expressed optimism regarding the plant's potential to create added value for domestic products and generate employment opportunities for Indonesian citizens, particularly those residing in Bontang region. Furthermore, Minister of State-Owned Enterprises Erick Thohir underscored the importance of balancing self-sufficiency in the fertilizer industry with the development of domestic petrochemical industries.

The successful inauguration of the Kaltim Amonium Nitrate plant not only signifies a significant milestone in Indonesia's journey towards industrial self-reliance but also highlights the government's commitment to fostering strategic partnerships and investments aimed at driving sustainable economic growth. The plant's operations are expected to contribute substantially to Indonesia's industrial landscape, bolstering key sectors and supporting the nation's long-term economic development objectives.