PT Pupuk Kaltim, a subsidiary of State-owned fertilizer holding company PT Pupuk Indonesia, has begun the construction of the first soda ash factory in Indonesiaaimed at reducing the country’s dependence on imports.

This soda ash factory will be built on a 16-hectare plot of land within PT Kaltim Industrial Estate area in East Kalimantan. With a production capacity of 300,000 tons of soda ash per year and 300,000 tons of ammonium chloride per year as a by-product, this factory is expected to be able to supply domestic soda ash needs which have so far relied on imports.

President Director of PT Pupuk Indonesia, Rahmad Pribadi, praises this project as it will support government programs for economic independence, food self-sufficiency, downstreaming, and transition to a green economy.

By utilizing CO2 as raw material, the soda ash factory is estimated to absorb up to 170,000 tons of CO2 per year.

"We are pleased to start this project, which will support government programs and reduce dependence on imports," Rahmad said, while addressing the signing of the Engineering, Procurement, and Construction (EPC) contract between Pupuk Kaltim and the consortium of PT TCC Indonesia Branch-PT Enviromate Technology International on Wednesday, January 22, 2025.

He cited that the construction of the Pupuk Kaltim soda ash factory is carried out at the right momentum in line with the government’s program to build three million houses annually for the community in need.

The 3-million house project, he said, is projected to require a lot of construction materials, such as glass and ceramics, which are primarily made of soda ash.

The Pupuk Kaltim soda ash factory is targeted to start operating in late 2027. In addition to Pupuk Kaltim, a similar soda ash factory will also be built by another subsidiary of Pupuk Indonesia, namely PT Petrokimia Gresik.