INDOPOSCO.ID – Australian mining solutions provider Orica has reaffirmed its commitment to continued investment in Indonesia as PT Kaltim Nitrate Indonesia (KNI), its joint venture with PT Armindo Prima, marks its 25th anniversary. KNI is currently the largest producer of ammonium nitrate in Indonesia.
Over the past quarter century, KNI has played a significant role in reducing Indonesia’s dependence on imported ammonium nitrate, a key raw material used in the production of industrial explosives for the mining sector.
Established in 2001 through a strategic partnership between PT Armindo Prima and Orica, KNI has developed into a world-class production facility that supports domestic supply security while enhancing the competitiveness of Indonesia’s industrial sector.
Orica Managing Director and Chief Executive Officer Sanjeev Gandhi said the milestone reflects the success of combining global expertise with strong local partnerships to build Indonesia’s strategic industrial capabilities.
“For more than 25 years, KNI has helped transform Indonesia’s resources industry from one that relied on imports to one supported by a resilient domestic supply of essential products and services for the mining sector,” Gandhi said.
According to Gandhi, KNI’s journey demonstrates how sustainable industrial cooperation can strengthen the national economy while supporting growth in the natural resources sector.
“This journey shows what can be achieved when global expertise is combined with strong local partnerships to support national development and industrial growth. We remain committed to investing in Indonesia to support the advancement of its natural resources industry,” he said.
Since commencing commercial production in 2012 through the end of 2025, KNI has produced more than 3.9 million metric tons of ammonium nitrate and exported more than 670 kilotons to international markets.
The achievement has also positioned Indonesia as one of the region’s ammonium nitrate exporters.
KNI’s facility has an installed production capacity of 366 kilotons per year and employs a workforce largely drawn from East Kalimantan, with approximately 85 percent of employees residing in Bontang.
In addition to strengthening domestic supply for the mining explosives industry, KNI contributes to the regional economy through job creation, local procurement of goods and services, and various community development programs.
PT Kaltim Nitrate Indonesia President Director Twedy Nasution said the transformation was made possible through the dedication of KNI’s workforce in building Indonesia’s strategic industrial sector.
“KNI demonstrates what Indonesia can achieve in strategic industries by transforming dependence on imports into a reliable domestic supply. After 25 years, my greatest source of pride is not the volume we have produced, but the Indonesian team in Bontang that made every ton possible,” Nasution said.
Throughout its operations, KNI has continued to improve efficiency and productivity. In 2024, the company recorded its highest annual production level of approximately 347 kilotons, marking a record since the facility began operations.
On the sustainability front, KNI implemented secondary abatement technology in 2023, reducing emissions by approximately 9.6 percent, equivalent to around 373 kilotons of CO₂-equivalent emissions annually.
Meanwhile, Orica Group Executive and President–Asia Rajkumar Mathiravedu said KNI has evolved into a benchmark for industrial capability across Asia.
“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, this achievement is a story of partnership and trust built in Indonesia over the past 25 years,” he said.
Moving forward, Orica and its partners will continue supporting KNI’s development to help drive growth in Indonesia’s mining sector, support the national downstream industrialization agenda, and strengthen long-term supply security for strategic raw materials in the domestic market. (srv)
