JAKARTA (TheInsiderStories) - President Joko Widodo (Jokowi) on Thursday morning inaugurated PT Pupuk Kaltim’s new fertilizer plant (Pupuk Kaltim 5) in Bontang, East Kalimantan with a total development cost of US$576 million. The plant was financed by national banks’ syndicated loans.
President Joko Widodo said the operation of the new plant will help the government’s drive to reach food security.
The new plant is built on 8.4 hectares of land and will start producing ammonia from Jan 12, 2015 and has a capacity to produce 825,000 tons of ammonia per annum and 1.15 million tons of fertilizer (urea) per year.
President Director of Pupuk Kaltim Aas Asikin Idat told reporters that the new plant uses KBR purifier technology, which enables the company to save save gas consumption of 14 MMBTU per tons or around Rp1.5 trillion per year.
Aas said Pupuk Kaltim also revamped its phosphoric acid plant with capacity of 200,000 tons per annum, which is used as raw materials for producing fertilizer (NPK).
In addition, Pupuk Kaltim is also revamping the phosphoric acid plant at the second plant of PT Petrokimia Gresik as well as developing other projects with combined investment of US$2.7 billion.
The President is accompanied by Minister for Industry Saleh Husin, Cabinet Secretary Pramono Anung, Minister for National Development Planning Sofyan Djalil and Head of Presidential Staff Teten Masuki, House members and local government officials. (*)