Jakarta, 15 June 2026 – Indonesia has achieved a major milestone in industrial self-sufficiency, with PT Kaltim Nitrate Indonesia (KNI) marking 25 years of operations as the country’s largest ammonium nitrate producer—effectively eliminating long-standing reliance on imports for one of the mining sector’s most critical inputs. 

Ammonium nitrate is a key raw material for industrial explosives that underpin Indonesia's mining industry. For decades prior to KNI’s establishment, domestic demand was met through imports, creating structural vulnerability across economic and strategic sectors. Over the past 25 years, KNI has transformed that position—strengthening domestic supply security and supporting national resilience.

Since commencing production in 2012, KNI has produced more than 3.9 million metric tonnes of ammonium nitrate and exported over 670 kilotonnes to international markets, helping position Indonesia as an emerging exporter of the product. The facility has an installed capacity of 366 kilotonnes per annum and is operated by a predominantly local workforce, with around 85% of employees based in Bontang.

Beyond production, KNI is a significant contributor to the East Kalimantan regional economy, sustaining local livelihoods through employment, procurement and community investment, and standing as one of the area's most established industrial operations. By securing a reliable, locally produced supply of the key input for mining explosives, KNI has removed the import lead times and supply risk that once constrained domestic blasting operations, helping mining customers achieve more consistent, efficient and predictable output. As a strategic material, ammonium nitrate also underpins sectors spanning mining, agriculture and defence, meaning KNI's domestic capability strengthens Indonesia's resilience across each.

PT Kaltim Nitrate Indonesia President Director, Twedy Nasution, said the milestone is a testament to Indonesian capability and the people behind KNI's operations:

"KNI demonstrates what Indonesia can achieve in a strategic industry, turning what was once an import dependency into a reliable domestic supply. None of it would have been possible without the skill and dedication of our people. After 25 years, I am proudest not of the metric tonnes we have produced, but of the Indonesian team in Bontang who made every one of them possible."

Established in 2001 through a strategic partnership between Indonesia’s Armindo Group and Orica of Australia, KNI has developed into a world-class operation aligned with global safety and operational standards. As it enters its next phase, the company is focused on supporting Indonesia’s growing mining sector while advancing sustainability and strengthening the country’s long-term industrial capability.

Armindo Group President Director, Winniarlita Irfaie, said KNI represents the realisation of a long-held vision to strengthen Indonesia's industrial independence:

“PT KNI was established more than two decades ago from a simple question: was Indonesia truly unable to fulfill its own ammonium nitrate needs? Driven by the belief that Indonesia must be able to stand on its own feet and reduce its dependence on imports of strategic materials, today PT KNI is no longer just an idea, but has become an important part in supporting the mining sector and strengthening national industrial capabilities. This journey demonstrates that Indonesia has the capacity to build strategic industries independently.”

Over its operating history, KNI has continued to strengthen performance through operational improvements, including extending maintenance cycles and increasing production efficiency. In 2024, the plant achieved its highest annual production of approximately 347 kilotonnes, reflecting sustained gains in productivity.

Orica Managing Director and CEO, Sanjeev Gandhi, said the milestone reflects the strength of long-term partnership in building local capability:

“Over 25 years, KNI has helped transform the resources industry in Indonesia from relying on imports to building a resilient, domestic supply of critical products and services for the mining industry. It highlights what can be achieved when global expertise is combined with strong local partnerships to support national development and industrial growth. Today our operation ranks among the safest and most reliable of its kind in the region, meeting the highest international quality and safety standards. For Orica, KNI is proof of how enduring industrial collaboration can strengthen an entire economy, and we are proud to have been part of that journey. We are committed to continue to invest in Indonesia to support the resources industry.”

KNI has also advanced sustainability performance, including the implementation of secondary abatement technology in 2023, reducing emissions by approximately 9.6%, equivalent to around 373 kilotonnes of CO₂-e annually.

PT Kaltim Nitrate Indonesia Director and Armindo Group Finance Director, Chrisna Deva, said KNI is well positioned for growth as it builds on 25 years of performance:

"As KNI enters its next phase, our ambition is to grow alongside Indonesia's industrial future, building on 25 years of performance. We see clear opportunity to expand our capability in support of the country's mining and downstreaming agenda. What gives me the greatest confidence is the strength of the team and the partnership behind KNI — that is what will carry this business into its future."

Orica Group Executive and President – Asia, Rajkumar Mathiravedu, said KNI has established itself as a regional benchmark built on partnership and trust:

"KNI has become a benchmark for industrial capability and resilience in Asia, showing how countries can build domestic supply strength while competing in international markets. But this milestone is, above all, a story of partnership and trust built in Indonesia over 25 years. The strength of KNI lies in its local leadership and people, and our role has been to support that for the long term."

As it enters its next phase, KNI is focused on supporting Indonesia’s growing mining sector and downstreaming agenda while continuing to improve environmental performance and strengthen long-term supply security for the domestic market.