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Soda Ash Factory Indonesia Soda Ash Soda Ash Production pupuk kaltim Industrial Estate
Indonesia's First Soda Ash Factory to be Built in Bontang, Groundbreaking in 2025
SELASAR.CO, Bontang – Indonesia is set to establish its first soda ash factory in Bontang, East Kalimantan, marking a significant milestone for the country’s industrial sector. This development, as highlighted by Rifki Adi Nugroho, the project preparation team leader for Pupuk Kaltim's soda ash project, marks a strategic milestone in the country's pursuit of self-sufficiency in soda ash production.
"Currently, Indonesia does not have a local soda ash factory. This facility will be a crucial step in cutting down dependence on imports," Rifki said during a press conference on Monday (January 20, 2025).
He added that Indonesia still fully relies on imported soda ash (sodium carbonate) to meet domestic demand for products such as glass, detergents, textiles, batteries manufacturing, and so on.
The project is part of Pupuk Kaltim’s business diversification strategy. A key raw material will be ammonia produced by Pupuk Kaltim itself. "This initiative is expected to bring added value to the company and benefit both the national and local economies," he stated.
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The factory will utilize 174,000 tons of CO₂ annually from existing facilities, supporting government programs for decarbonization, reducing carbon emissions, and promoting sustainability in operations. "Additionally, the factory will produce ammonium chloride as a by-product, serving as a nitrogen-based fertilizer to strengthen national food security," Rifki explained.
The factory, to be located in the Industrial Estate area, will span 16 hectares and produce two main products: soda ash and ammonium chloride, each with an annual capacity of 300,000 tons. Environmental considerations are a priority, with the project having secured an environmental impact assessment (AMDAL) approval since 2022.
"We have appointed the contractors and insya Allah will sign the contract with the winning consortium, PT TCC Indonesia Branch and PT Enviromate Technology International (ETI), on Wednesday, January 22, 2025.
Groundbreaking is planned for the first quarter of 2025, with a project duration of 33 months. Commercial production is expected to commence by late of 2027," Rifki added.
Indonesia imports nearly 1 million tons of soda ash annually, primarily for glass production.
"With this factory, we aim to support the glass industry and the government's housing programs, as well as sectors like ceramics, textiles, and paper," Rifki explained.
According to data from Statistics Indonesia (BPS), soda ash imports reach 916,000 metric tons annually and are projected to increase to 1.2 million tons by 2030.
The factory will implement a circular economy model by utilizing ammonia and CO₂ from Pupuk Kaltim's existing facilities. In addition to soda ash, it will produce ammonium chloride fertilizer as a by-product, which can be used domestically and exported, if supply exceeds demand.
"The construction of this soda ash factory aligns with the government’s downstream industry programs. With an annual production capacity of 300,000 tons, the factory is expected to substitute up to 30% of the national soda ash demand. The primary market will be in West Java, East Java, and Sumatra," Rifki said.
The project is also anticipated to generate a multiplier effect for the national economy, including increased state revenue through the substitution of soda ash imports, the use of domestic construction materials, and fulfillment of domestic component level (DCL).
"For public the project will create 800 jobs during peak constructions and 86 positions during the operational phase. Additionally, it will increase the local industrial salt absorption by 17,000 tons per year once fully operational," Rifki concluded.
Penulis: Yoghy Irfan
Editor: Awan
