Support Energy And Sustainability Efficiency, Pupuk Kaltim Starts The Revamping Process Of The Oldest Factory

Photo: Doc. Pupuk Kaltim

PT Pupuk Kalimantan Timur (Pupuk Kaltim) has started the process of revamping its oldest factory by installing the first stake in Bontang, East Kalimantan, today, Friday, May 3.

Revamping of this factory is a form of commitment and initiative of Pupuk Kaltim in leading the green transformation of Indonesia's fertilizer and petrochemical industries. The oldest factory of Pupuk Kaltim, which has been operating since 1984, will be updated in order to increase energy efficiency in factory operations, create more competitive products, and contribute to government decarbonization programs.

For the project that is targeted to be completed by the end of 2025, Pupuk Kaltim collaborates with PT Tripatra Engineers & Constructioners as the contractor of Engineering, Procurement and Construction (EPC). The revamping process began with the signing of the contract on November 1, 2023, then continued with the first election and the signing of the safety commitment today.

President Director of Pupuk Kaltim Budi Wahju Soesilo said that the First Piling and Safety Commitment Ceremony process is a very important moment in determining the success of the project.

"As the stakepole in this first election will support the structure or equipment above it, our commitment to safety must also be the foundation for our joint efforts. For Pupuk Kaltim, safety is not just a requirement, but is a fundamental value that we uphold. This is the basis of operations that guide every decision and action that we will take. Both as owners, contractors, subcontractors or workers in the field, all have a shared responsibility to prioritize safety above all else," he said.

As a form of revamping activity, Pupuk Kaltim will also add tools and updates or modifications to existing tools. This effort is expected to increase the competitiveness of ammonia products and the existing urea of Pupuk Kaltim so that it can not only produce quality products to support national food security, but also be able to compete in the global market.

If it is fully operational after revamping, the Factory 2 is expected to increase production efficiency and reduce gas consumption which has an impact on reducing CO2 emissions. Later, Factory 2 can also reduce energy consumption by 4 MMBtu/tonne ammonia, thus reducing CO2 emissions equivalent to reducing emissions by 110,000 tons of CO2 per year.

In addition to revamping Factory 2, Pupuk Kaltim continues to aggressively encourage various initiatives to support the achievement of decarbonization targets through several programs. Starting from the construction of a soda ash factory, community forest (tree planting programs by involving the community and government), to utilizing renewable energy sources, one of which is by exploring clean ammonia technology.

This decarbonization effort targets 32 percent reduction in carbon emissions by 2030 as a form of government program support to achieve Net Zero Emission.

"Hopefully this first election and safety commitment ceremony will mark not only the beginning of efforts to build this revamping project, but also the beginning of our firm commitment to aspects of safety and sustainability. We ask for prayers and support so that the entire development process runs smoothly and safely, so that in the future, Pupuk Kaltim can continue to innovate and produce quality and sustainable products, in line with our role as pioneers of industrial green transformation in Indonesia," concluded Soesilo.