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Brief Story

A Brief History of Pupuk Kaltim

PT Pupuk Kalimantan Timur (Pupuk Kaltim) is a subsidiary of PT Pupuk Indonesia (Persero). Initially, the Pupuk Kaltim project was managed by the state oil company Pertamina with a facility of a floating fertilizer plant or a plant on a ship. However, due to several technical considerations, the project was shifted to land in accordance with the Presidential Decree No. 43 of 1975 and later through the Presidential Decree No. 39 of 1976. With the issuance of the Presidential Decree, the management was handed over to the Ministry of Industry. Through the Minister of Industry at that time, a task was assigned to complete the construction of the largest fertilizer plant in Asia, namely Pupuk Kaltim, which was officially operated on December 7, 1977. A land area of 443 hectares in Bontang, East Kalimantan, was prepared for the construction of the project. Natural gas, which is the main raw material for the production of Ammonia and Urea, was channeled through a 60 km pipeline from Muara Badak, East Kalimantan.

 

The first project, which is the construction of Plant 1, started in 1979, while the construction of Plant 2 started in 1982. The two plants were inaugurated simultaneously on October 29, 1984. Subsequently, Plant 3 was built and inaugurated on April 4, 1989. In 1999, the first urea granule plant in Indonesia, namely the Kaltim Optimization Project (POPKA), was established. The plant was inaugurated on 6 July 2000 at the same time as the erection of the first pile of Plant 4. The Urea Unit of Plant 4 was inaugurated on July 3, 2002 while the Ammonia unit on June 28, 2004. In 2014 Pupuk Kaltim took over the Ammonia Plant of PT Kaltim Pasifik Ammonia (KPA), and currently the operation of the ex-KPA Plant is part of the Kaltim Optimization Project (POPKA) under the coordination of Plant 1A. Moreover, in order to support the National Food Sovereignty Program as well as to support the plantation sector and domestic industry, the Government through the Presidential Instruction No. 2 of 2010 decided to revitalize the national fertilizer industry through the replacement of a fertilizer plant that has gas consumption above 34 MMBTU per ton of Urea with a new technology plant that is more energy efficient and consumes less raw materials.

 

This revitalization was realized through the construction of Plant 5 which started in 2011 and was inaugurated by the President of the Republic of Indonesia Joko Widodo on November 19, 2015. In addition to being more efficient in raw materials, Plant 5 has the largest production capacity, compared to other Pupuk Kaltim’s plants. At present, the construction of these plants has become a petrochemical industrial complex consisting of five Ammonia plants, five Urea plants, three NPK Blending plants, two NPK Fusion plants, one Coal Boiler plant, bagging unit, and warehousing unit. Supported by reliable and experienced human resources, Pupuk Kaltim is ready to become a major player in a growing and sustainable world-class agrochemical-based industry.

 

VISION

"To become a growing and sustainable world-class Company in the fertilizer, chemical and Agrobusiness industry."

 

MISSION

  • Engaging in a business that deals with fertilizers and chemical products as well as investment portfolio in the chemical, agrobusiness, energy, trading, and plant services sectors with strong competitiveness;

  • Optimizing the Company's corporate values through the core business and developing new businesses to increase revenue and support the National Food Sovereignty program;

  • Optimizing the utilization of resources in the surrounding environment and the global market, supported by an internationally-oriented human resource by applying the most advanced technologies;

  • Providing optimal benefits to Shareholders, employees and the public while maintaining concern for the environment.

 


Corporate Culture

 

The employees and extended family of Pupuk Kaltim also apply the Corporate Values in their daily behavior which are summarized in AKHLAK as the Company`s new core values.

AMANAH/TRUST

Hold on to the trust given.

KOMPETEN/COMPETENT

Continue to learn and develop capabilities.

HARMONIS/HARMONIOUS

Care for each other and respect differences.

LOYAL/LOYAL

Dedicated and prioritize the interests of the Nation and the State.

ADAFTIF/ADAPTIVE

Continue to innovate and enthusiastic in driving or facing any changes.

KOLABORATIF/COLLABORATIVE

Build a synergistic collaboration,


Business Profile

  

LINE OF BUSINESS

The Company's business activities in accordance with the Articles of Association No. 25 dated January 19, 2011 paragraph 3 include

 

MANUFAKTURING

Processing certain raw materials into basic materials needed for the production of fertilizers, petrochemicals, agrochemicals, agroindustries, and other chemicals; and processing these basic materials into various types of fertilizers and other chemical products and their derivative products In addition to the production of fertilizer and Ammonia products, Pupuk Kaltim also produces plant utilities, such as steam, electricity, and demineralized water to meet the Company's industrial needs. In order to support business sustainability and strengthen its position in the manufacturing business, Pupuk Kaltim has a specific plan to expand its business in the field of methanol processing. This is marked with a blueprint for a new processing unit and industrial land preparation in Pupuk Kaltim industrial area.

 

TRADING

Running the distribution and trading of urea, ammonia, fertilizer products, petrochemicals, agrochemicals, agroindustries, and chemicals both domestically and internationally including imports of raw materials, supporting materials, fertilizer production equipment, and chemicals. In addition, to ensure and guarantee the industrial cycle of goods production for consumers, Pupuk Kaltim runs pre-marketing activities in all marketing lines. Corporately, this policy makes trading of raw materials for fertilizers a part of corporate business activities.

 

SERVICES

Conducting research, education, development, engineering design, bagging stations, construction, manufacturing, plant operation management, repair, maintenance, consulting (except legal consulting), and other technical services in the fertilizer, petrochemical industries, agrochemical, agroindustry, and other chemical industries and services in agriculture and plantations sectors. In the service sector, Pupuk Kaltim does research and development consisting of the development of products, technology to plant maintenance services. The research on product development enables Pupuk Kaltim to develop new products that will be marketed through the retail market. In the field of plant maintenance services, Pupuk Kaltim continues to take part through the sale of services and equipment. The focus of Pupuk Kaltim's services business has grown with the implementation of precipalm, which is the management of smart farming solutions to improve agricultural efficiency and land productivity.

 

BUSINESS DEVELOPMENT

2015 : The Operation of Plant 5

Plant 5, which began construction in 2011, was inaugurated on November 19, 2015 by the President of the Republic of Indonesia, Joko Widodo. With the operation of this plant, Pupuk Kaltim has a production capacity of Urea Plant and Ammonia Plant of 3.435 million tons per year and 2.740 million tons per year, respectively. The spirit of high dedication continues to bring out the best work for this nation. Pupuk Kaltim owns five Urea plants, five Ammonia plants, three NPK Blending plants, one NPK Fusion plant, and one Coal Boiler plant.

 

2015 : The Construction of Coal Warehouse

In order to meet the needs and maintain the continuity of the steam supply for Plant 5 which has been operating since 2015, Pupuk Kaltim has built a coal warehouse with a capacity of 30,000 tons which began in 2015 and completed its construction in 2016. The construction of the Coal Warehouse is aimed to accommodate the needs of steam in several plants so that the reliability of coal boiler can be guaranteed properly.

 

2016 : The Construction of Rail Mounted Harbor Crane at Pier-4 (Tursina)

In order to support and speed up the loading and unloading rate process at Pier-4, Pupuk Kaltim has added a facility of Rail Mounted Harbor Crane (RMHC) with a capacity of 500 MTPH which was built from 2014 to 2016. The construction was carried out due to observing the Company's future development with several new plants so that the facilities to speed up the loading and unloading rate process at Pier-4 needed to be improved.

 

2017: The Construction of Urea Bulk Storage (UBS) VI

The construction of the Urea Bulk Storage (UBS) VI Warehouse with a capacity of 100,000 tons and equipped with conveyor system facilities had been carried out since 2015 and completed in 2017. The warehouse construction was built to meet the storage needs of Pupuk Kaltim urea fertilizer, especially due to additional production from Pupuk Kaltim's newest plant, namely Plant 5 which has a capacity of 2,740 million tons per year and was inaugurated by the President of the Republic of Indonesia in 2015.

 

2018-2020: Palm Oil Mill Construction Project

The development of new products and businesses was carried out by down-streaming products based on oil palm plants. The Company through its subsidiary PT Kalimantan Agro Nusantara (Kalianusa), which is a joint venture with PT Perkebunan Nusantara XIII, built a Palm Oil Mill with a capacity of 30 tons of fresh fruit bunches (FFB)/hour which produces crude palm oil (CPO) of 40,000 tons per year in Rantau Pulung District, East Kutai Regency which started in 2018 and was commercialized in 2020.

 

2020-2021: The Construction of NPK Bulk Raw Material Warehouse

In order to fulfill operational support and maintain the continuity of raw materials for the NPK Plant, the Company has currently been building a bulk raw material warehouse with a capacity of 45,000 tons for the storage of bulk KCL and bulk DAP raw materials equipped with conveyor facilities from the Pier to the Warehouse. The implementation of the warehouse project was effective on January 17, 2020 and is targeted to be completed in 2021.

 

2020-2022:  The Ammonium Nitrate Plant Development Project

The development of new products and businesses is carried out by diversifying natural gas-based products, namely ammonia into nitric acid and ammonium nitrate. The Company through its subsidiary PT Kaltim Ammonium Nitrate (KAN), which is a joint venture with PT Dahana Investama Corp (a subsidiary of Dahana), signed a contract on 18 December 2019 for the construction of a Nitric Acid Plant with a capacity of 60,000 MTPY and an Ammonium Nitrate plant with a capacity of 75,000 MTPY in the area of PT Kaltim Industrial Estate (KIE) which is targeted for completion in 2022.

  


Affiliates and Subsidiaries

AFILIASI


 

ANAK PERUSAHAAN



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