State fertilizer company PT Pupuk Indonesia has begun the construction of Indonesia’s first soda ash (sodium carbonate) plant, with a total investment of Rp5 trillion (US$299 million), financed by the company and national banks.

Pupuk Indonesia President Director, Rahmad Pribadi, said that efforts to build a soda ash facility have been envisioned for over three decades. The project’s realization marks part of President Prabowo Subianto’s “Astacita” vision, focusing on industrial downstreaming and strengthening national industrial resilience.

“The President’s directive was very clear − to continue advancing downstream industries and strengthen industrial resilience,” Rahmad said during the groundbreaking ceremony in Bontang, East Kalimantan, on Friday, October 31, 2025.

The new facility is designed to reduce Indonesia’s reliance on imported soda ash and to process 105,000 tons of ammonia annually as part of the country’s downstreaming initiative. It will also help lower carbon emissions by capturing and reusing 174,000 tons of excess CO₂ per year as a raw material for soda ash production.

In addition, the plant will support food security through the production of ammonium chloride, a component used in NPK (Nitrogen, Phosphorus, Potassium) fertilizers, while also increasing corporate revenue.

The project is targeted for completion by March 2028 and will have an annual production capacity of 300,000 metric tons each for soda ash and ammonium chloride, serving both domestic and export markets. It is expected to create 800 construction jobs and 86 operational positions.

Currently, Indonesia imports 100 percent of its soda ash and ammonium chloride needs, amounting to 801,670 tons of soda ash and 312,670 tons of ammonium chloride in 2024.

Rahmad emphasized that domestic production is essential to safeguard foreign exchange reserves:

“If Indonesia doesn’t start building its own soda ash industry, I can’t imagine how much foreign exchange we would continue to lose − especially since we already have all the resources needed to produce it ourselves,” he said.