PT Pupuk Kalimantan Timur (Pupuk Kaltim) will soon realize the construction of the first soda ash factory in Indonesia. With a production capacity of 300,000 metric tons per year, this factory is estimated to be able to meet 30% of domestic soda ash needs. Pupuk Kaltim Corporate Secretary, Teguh Ismartono stated that the construction of this soda ash factory is planned to begin in the first quarter of 2025 and will be operational at the end of 2027. The important stage begins with the signing of the Engineering, Procurement and Construction (EPC) contract which is scheduled to take place in Jakarta on January 22th 2025. The factory which will be built on 16 hectares of land in the PT Kaltim Industrial Estate area, in Bontang City, East Kalimantan, is part of the downstream strategy encouraged by the government.

Based on BPS data, during 2022 Indonesia imported 916,828 metric tons of soda ash for domestic needs. This need is expected to continue to increase to 1.2 million metric tons by 2030. Soda ash is the main raw material in several industries, such as glass, ceramics, textiles, paper, and batteries. Head of the Soda Ash Project Preparation Team Rifki Adi Nugroho added that the factory's production process when it operates will also apply the principles of a circular and environmentally friendly economy. The utilization of this CO2 in this production, the soda ash factory is estimated to be able to absorb up to 170,000 tons of CO2 per year. Conversely, the by-product of the soda ash factory in the form of Ammonium Chloride can also be used as a source of nitrogen to meet domestic and export fertilizer production needs. The existence of this factory will not only have a positive impact on the economy, but also on the environment and society.
Source:
https://industri.kontan.co.id/news/pupuk-kaltim-bangun-pabrik-soda-ash-berkapasitas-300-ribu-metrik-ton-rampung-2027