Business Profile

PRIMARY BUSINESS

Pupuk Kaltim is a subsidiary of PT Pupuk Indonesia Holding Company (Persero), and currently has a production capacity of 2.98 million tons of Urea per year, 1.85 million tons of ammonia per year and 350 thousand tons of NPK per year. Pupuk Kaltim also produces organic fertilizer with a capacity of 45 thousand tons per year. The company was officially established on December 7, 1977 and is located in Bontang, East Kalimantan.

The Company’s main business is to produce and sell Ammonia, Urea and NPK Fertilizer with domestic and foreign market segments. For subsidized fertilizer distribution in domestic market, Pupuk Kaltim is responsible to fulfill the demand of 2/3 of the Indonesian territory of Eastern Indonesia to Papua and most of East Java and Kalimantan, except West Kalimantan. The area is determined by letter of President Director of PT Pupuk Indonesia (Persero) Number U-1308/A00000.UM/2012 dated October 8, 2012 on Assignment of Regional Responsibility for Procurement and Distribution of Subsidized Fertilizer for Agricultural Sector. As for foreign market, Pupuk Kaltim exports its products to countries in the Asia Pacific region, the United States, South America and so forth.

Purpose of Establishment

To operate integrated business activities from industry, trade and distribution to services in the field of fertilizers, petrochemicals, and other chemicals, and to capitalize on the Company’s resources to produce high quality goods and services that have high quality, highly competitive and ready to support National Food Security.

Core Business Activity

Industry
Processing certain raw materials into basic materials needed for producing fertilizer, petrochemical, agrochemical, agro industry, and other chemical materials, as well as processing the basic materials into various types of Fertilizer and other chemical results and their derivative products.
Trade
Conduct distribution and trading activities, both inside and outside the country that are associated with the products mentioned above and other products related to fertilizer, petrochemicals, agrochemicals, agro industry, and other chemicals, as well as the import activity in the form of raw materials, supplementary materials, fertilizer production equipments and other chemicals.
Service
Conduct research studies, education, development, design and engineering, bagging station, construction, manufacturing, management, plant operations, repair, maintenance, consulting (other than law consulting) and other technical services in fertilizer industry, petrochemicals, agrochemical, agro industry and other chemical industry sectors as well as services in agricultural and plantation field.

BUSINESS DEVELOPMENT

NPK Chemical Plant Development Project
In order to support the Strategic Plan of the Ministry of Agriculture in terms of intensification of agricultural land and plantations to maintain food sovereignty, and also the government encouragement to convert the use of single fertilizer into compound fertilizer, Pupuk Kaltim plans to build a NPK Chemical Plant with a capacity of 500,000 MTPY.
Phosphoric Acid and Sulfuric Acid Plant Development Project
The development of Phosphoric Acid Plant and Sulfuric Acid was executed to meet the need of raw materials from NPK Chemical factory. The construction of the plant is done through Joint Venture Company (JVC) scheme of PT Kaltim Jordan Abadi as a form of Pupuk Kaltim cooperation with JPMC. The capacity of Phosphoric Acid Factory is 200,000 tons per year and the capacity of Sulfuric Acid Factory is 300,000 tons per year.
Ammonium Nitrate Plant Development Project
At present, Pupuk Kaltim has ammonia excess of 700,000 tons per year. Therefore, to increase the added value of ammonia, Pupuk Kaltim plans to build ammonium nitrate factory with a capacity of 150,000 tons per year. The construction of the ammonium nitrate plant is executed by PT Kaltim Amonium Nitrat (KAN), which is a joint venture between Pupuk Kaltim and PT Dahana.
Industrial Land Preparation
In accordance with the long-term plan and to ensure the company’s sustainability, Pupuk Kaltim needs to continually develop its business. To support the company's plan, it is considered necessary to prepare an industrial land that covers the North Land Industrial Estate, South Kaltim-5 land and East Tursina land.