INDUSTRY.co.id - Bontang, Amid the deficit of the trade balance, the chemical industry such as ammonium nitrate producers play an important role to substitute imports because its production capacity is able to meet the needs of the domestic market.

This was stated by the Minister of Industry Airlangga Hartarto during a working visit at PT Pupuk Kaltim, Bontang, East Kalimantan, Saturday (7/7/2018).

"We push domestic market more optimally, and continue to be encouraged for export," said Minister of Industry.

Moreover, Ministry of Industry actively spur the development of industrial sectors that have the potential to increase the value of national exports.

"The government has developed medium and long term solutions, namely through import and investment substitution, while the short term is like limiting import of ammonium nitrate, because the domestic industry is sufficient," he explained.

The Minister of Airlangga also revealed that the chemical industry cluster in Bontang still has great potential for the development of downstream products such as dimethyl ether which can be used as LPG replacement fuel source, ammonium nitrate based compound fertilizer, soda ash, and ammonium chloride fertilizer.

In addition, the area of ​​East Kalimantan also has prospects for palm oil plantation development as a source of raw materials for oleochemical based industry clusters as a solution to the significant decrease in palm oil prices in recent years in order to overcome the trade balance deficit.