INDOPOSCO.ID – Indonesia has reached an important milestone in industrial self-reliance as PT Kaltim Nitrate Indonesia (KNI) marks 25 years of operation as the country’s largest ammonium nitrate producer, ending a long-standing dependence on imports for one of the key raw materials supporting the national mining sector.
Ammonium nitrate is the primary raw material used in the production of industrial explosives that support mining activities across Indonesia. For decades before KNI was established, domestic demand was met through imports, creating structural vulnerabilities for both the economy and strategic industries. Over the past 25 years, KNI has helped transform this situation by strengthening domestic supply security and supporting national resilience.
Since commencing commercial production in 2012 through the end of 2025, KNI has produced more than 3.9 million metric tonnes of ammonium nitrate and exported more than 670 kilotonnes to international markets, positioning Indonesia as an exporter of the product. The facility has an installed production capacity of 366 kilotonnes per year and is operated by a workforce largely drawn from the local community, with approximately 85% of employees residing in Bontang.
Beyond its production contribution, KNI has also played a significant role in the economy of East Kalimantan through job creation, local procurement of goods and services, and community investment programs.
As one of the region’s established industries, KNI has ensured a reliable domestic supply of ammonium nitrate for the mining explosives sector, eliminating import lead times and supply disruption risks that previously constrained blasting operations.
As a strategic material, ammonium nitrate also supports the mining, agriculture, and defense sectors, making KNI’s domestic production capability an important contributor to Indonesia’s resilience across these industries.
PT Kaltim Nitrate Indonesia President Director Twedy Nasution said the achievement reflects Indonesia’s industrial capabilities and the dedication of KNI’s workforce.
“KNI demonstrates what Indonesia can achieve in strategic industries by transforming import dependence into a reliable domestic supply. This would not have been possible without the expertise and dedication of our people. After 25 years, my greatest source of pride is not the tonnage we have produced, but the Indonesian team in Bontang that has made every tonne possible,” he said.
Established in 2001 through a strategic partnership between Indonesia’s PT Armindo Prima and Australia’s Orica, KNI has developed into a world-class facility operating under international safety and operational standards. As it enters its next phase, the company is focused on supporting the growth of Indonesia’s mining sector while advancing sustainability and strengthening the long-term competitiveness of national industry.
PT Armindo Prima President Director Winniarlita Irfaie said KNI represents the realization of a long-term vision to strengthen Indonesia’s industrial independence.
“More than two decades ago, PT KNI was born from a simple question: Could Indonesia meet its own ammonium nitrate needs? Driven by the belief that Indonesia should stand on its own feet and reduce dependence on imported strategic materials, PT KNI has evolved from an idea into an important contributor to the mining sector and national industrial capability. This journey demonstrates Indonesia’s ability to build strategic industries independently,” she said.
Throughout its operational history, KNI has continuously improved performance through a range of operational enhancements, including extending maintenance cycles and increasing production efficiency. In 2024, the facility recorded its highest annual output of approximately 347 kilotonnes, reflecting sustained productivity improvements.
Orica Managing Director and Chief Executive Officer Sanjeev Gandhi said the milestone highlights the strength of long-term partnerships in building local capabilities.
“For more than 25 years, KNI has helped transform Indonesia’s resources industry from one reliant on imports to one supported by a resilient domestic supply of essential products and services for mining. This journey shows what can be achieved when global expertise is combined with strong local partnerships to support national development and industrial growth. Today, our operations are among the safest and most reliable in the region, meeting the highest international quality and safety standards. For Orica, KNI demonstrates how sustained industrial collaboration can strengthen the broader economy, and we are proud to have been part of that journey. We remain committed to investing in Indonesia to support the continued advancement of its natural resources industry,” he said.
KNI has also continued to improve its sustainability performance, including through the implementation of secondary abatement technology in 2023, which reduced emissions by approximately 9.6%, equivalent to around 373 kilotonnes of CO₂-equivalent annually.
PT Kaltim Nitrate Indonesia Director and PT Armindo Prima Deputy Director Chrisna Deva said the company is well positioned for future growth.
“As we enter the next phase, KNI’s ambition is to grow alongside the future of Indonesian industry by building on the achievements of the past 25 years. We see significant opportunities to expand our capabilities in support of the national mining and downstream processing agenda. What gives me the greatest confidence is the strength of the team and partnerships behind KNI, and that is what will carry the company into the future,” he said.
Orica Group Executive and President – Asia Rajkumar Mathiravedu said KNI has become a benchmark for industrial capability in Asia, built on partnership and trust.
“KNI has become a reference point for industrial capability and resilience in Asia, demonstrating how a country can strengthen its domestic supply while competing in international markets. Above all, however, this achievement is a story of partnership and trust built in Indonesia over the past 25 years. KNI’s strength lies in its leadership and people, while our role is to continue supporting that success over the long term,” he said.
As it enters its next phase, KNI will continue supporting the growth of Indonesia’s mining sector and downstream industrialization agenda, while improving environmental performance and strengthening long-term supply resilience for the domestic market. (srv)
