Jakarta, ThedailyID — PT Pupuk Kalimantan Timur (Pupuk Kaltim) expects major production cost savings after completing the revamp of its Ammonia Plant-2.
Pupuk Kaltim and Swiss-based technology company Casale SA signed a Joint Declaration on October 6, 2026. The declaration confirmed that the upgraded plant met the agreed performance targets.
The plant completed a 168-hour continuous performance test in August 2026. During the seven-day test, energy consumption fell by more than 10%.
At the same time, daily ammonia production capacity increased by 4.18%. The results exceeded the project’s minimum energy-efficiency target.
Energy consumption dropped from 39.28 to 35.25 MMBTU per ton of ammonia. That represents a reduction of 4.03 MMBTU per ton, above the 4.00 MMBTU target.
Based on the results, Pupuk Kaltim projects annual production cost efficiencies of up to US$14.3 million. The company estimates the figure at around Rp228 billion.
The revamp also increased average ammonia production to 1,841 tons per day. Previously, the plant produced around 1,767 tons per day.
Pupuk Kaltim President Director Rafli Yandra said the project shows the company’s focus on operational efficiency.
“A plant that has been operating since 1984 now uses less energy and produces more ammonia, in line with our agreed targets,” Rafli said.
He added that lower production costs and a more reliable ammonia supply could support fertilizer production and national food security.
The project upgraded the shift converter, ammonia converter and CO2 removal system. It also integrated a Distributed Control System (DCS) into the plant.
The revamp is also projected to reduce carbon dioxide emissions by around 110,000 tons per year. Pupuk Kaltim said the improvement will support its broader decarbonization efforts.
Casale CEO Federico Zardi said the company was proud to work with Pupuk Kaltim. He also described the project as the beginning of a stronger partnership.
The Ammonia Plant-2 has operated since 1984. Instead of building a new facility, the project modernized the existing plant through targeted technology and equipment upgrades.
Rafli said the next priority is maintaining reliable operations after the revamp. The company aims to keep fertilizer supplies available to farmers without interruption.
