INDUSTRY.co.id - Jakarta, Indonesia's journey to industrial independence again carved an important milestone. PT Kaltim Nitrate Indonesia (KNI) marks 25 years as the largest ammonium nitrate producer in Indonesia, an achievement that has also changed the face of the national strategic industrial supply chain from import dependence to independent and sustainable domestic production capabilities.
For many years, the national demand for ammonium nitrate — the main raw material for the manufacture of industrial explosives for the mining sector was met through imports. These conditions make national supplies vulnerable to various external disturbances.
The presence of KNI became a turning point that strengthened the resilience of domestic supply while supporting the sustainability of the mining industry as one of the main drivers of the Indonesian economy.
Since commencing commercial production in 2012 until the end of 2025, KNI has produced more than 3.9 million metric tons of ammonium nitrate. Of these, more than 670 kilotons have been exported to various international markets, placing Indonesia as one of the players in the global trade of these products.
With an installed capacity of 366 kilotons per year, the KNI facility in Bontang is also an example of the successful development of local human resource-based industries, where around 85 percent of its employees are residents living in the area.
The contribution of KNI is not only reflected in production figures. For a quarter of a century, this company has also been the driving force of the East Kalimantan economy through job creation, strengthening local supply chains, and various community social investments.
The existence of ammonium nitrate production facilities in the country has cut the waiting time for imports and reduced the risk of supply disruptions that could previously affect the operations of the mining blasting industry.
As a strategic commodity, ammonium nitrate has an important role not only for the mining sector, but also agriculture and defense. Therefore, KNI's domestic production capabilities are considered to have also strengthened national resilience in these various sectors.
President Director of PT East Kalimantan Nitrate Indonesia, Twedy Nasution, asserted that this 25-year achievement is the result of the ability and dedication of Indonesian human resources.
“KNI demonstrates what Indonesia is capable of achieving in the strategic industrial sector, by converting its dependence on imports into a reliable domestic supply. After 25 years, our greatest pride is not only the amount of production produced, but the Indonesian team in Bontang that allows all these achievements to be realized," he said.
Established in 2001 through a strategic partnership between PT Armindo Prima and Orica Australia, KNI developed into a world-class facility that implements international safety and operational standards.
Entering the next phase of growth, the company is committed to supporting the development of the national mining sector while strengthening the competitiveness of Indonesian industry in a sustainable manner.
President Director of PT Armindo Prima, Winniarlita Irfaie, called KNI a manifestation of a long vision to build national industrial independence.
“More than two decades ago, we started with a simple question: why should Indonesia rely on ammonium nitrate imports? Today, KNI has become proof that Indonesia is able to build and manage its own strategic industries to support national development," he said.
Throughout its operating history, KNI continues to make various performance and efficiency improvements. One notable achievement occurred in 2024 when the company recorded the highest annual production in history, reaching around 347 kilotons. These achievements reflect a consistent increase in productivity as well as increasingly reliable operational capabilities.
Managing Director and CEO Orica, Sanjeev Gandhi, rated the success of KNI as tangible evidence of the power of long-term collaboration between global expertise and local partnerships.
“For more than 25 years, KNI has helped transform Indonesia's resource industry from one that relies on imports to one that has a resilient domestic supply. KNI shows how sustainable collaboration can support national development while strengthening industrial growth," he said.
On the sustainability side, KNI also recorded significant progress. The implementation of secondary abatement technology in 2023 succeeded in reducing emissions by about 9.6 percent or equivalent to 373 kilotons ofCO ₂ -equivalent per year.
This step is part of the company's efforts to improve environmental performance along with business growth.
Director of PT Kaltim Nitrate Indonesia and Deputy Director of PT Armindo Prima, Chrisna Deva, said that the foundation that has been built for 25 years provides a strong space for the company to continue to grow.
“We see a great opportunity to expand capabilities to support the national mining and downstreamisation agenda. The greatest strength of KNI lies in the teams and partnerships that have been built over the years, and that is what will take the company into the future,” he said.
A similar view was expressed by Group Executive and President of Asia Orica, Rajkumar Mathiravedu. According to him, KNI has become a benchmark for industrial capabilities in the Asian region as well as showing how strengthening domestic supply can go hand in hand with global competitiveness.
“This achievement is essentially a story of partnership and trust built over 25 years. KNI's strength lies in its leadership and human resources, while we are committed to continue supporting the long-term growth of Indonesian companies and industries,” he said.
Entering the next round, KNI affirms its commitment to continue to support the growth of the mining sector and the national downstream agenda, while improving environmental performance and strengthening domestic supply resilience in the long term.
