Bontang, East Kalimantan (ANTARA) - Indonesia’s state-owned fertilizer company, PT Pupuk Indonesia, has begun construction of the country’s first soda ash (sodium carbonate) factory in Bontang District, East Kalimantan.
During the groundbreaking ceremony on Friday, PT Pupuk Indonesia's President Director Rahmad Pribadi announced an investment of Rp5 trillion (approximately US$300 million) in the facility, a concept first proposed three decades ago.
Pribadi stated that the plant is designed to reduce Indonesia’s reliance on imported soda ash and enhance the value of 105 thousand tons of ammonia products annually through downstream processing.
He added that the facility will also utilize 174 thousand tons of excess carbon dioxide (CO₂) as a raw material, helping to lower emissions.
In addition to soda ash, the factory will produce ammonium chloride as a byproduct, which can be used directly as fertilizer or as a component in NPK fertilizer production—contributing to national food security goals.
Scheduled for completion in March 2028, the plant will have an annual production capacity of 300 thousand tons of soda ash and ammonium chloride.
It will be supported by bulk storage facilities for 20 thousand tons per product, 5,500 tons in bagged form, and 50 thousand tons of bulk sodium chloride.
The project is expected to generate approximately 800 jobs during construction and employ 86 workers once operational.
Pribadi noted that Indonesia currently depends entirely on imports to meet domestic demand for soda ash and ammonium chloride, with 801.67 thousand tons and 312.67 thousand tons imported respectively in 2024.
He emphasized the importance of domestic production to reduce foreign exchange losses and support key sectors such as palm oil agriculture.
“I can’t imagine the foreign exchange losses we would continue to incur if we don't start producing our own soda ash. In fact, we already possess all the necessary resources to manufacture this product ourselves,” he remarked.
