PT Petrokimia Gresik (Persero), an Agroindustrial Solutions company and member of the PT Pupuk Indonesia (Persero) holding, alongside PT Rekayasa Industri (Rekind), have strengthened their synergy to drive green industry and national chemical industry self-reliance through the construction of a Soda Ash and Ammonium Chloride Plant with a total capacity of 600,000 tons per year. The project, to be built in Gresik, East Java, also forms part of efforts to utilize carbon dioxide (CO₂) as a value-added industrial raw material.
This strategic step was marked by the signing of an Engineering, Procurement, Construction, and Commissioning (EPCC) contract between Petrokimia Gresik and Rekind in Jakarta, Friday (30/10/2026), which simultaneously signals the start of the execution phase for the construction of the new production facility.
President Director of Pupuk Indonesia, Rahmad Pribadi, stated that the construction of the Soda Ash and Ammonium Chloride Plant is a strategic initiative aligned with directions from the President of the Republic of Indonesia, Prabowo Subianto, in reinforcing food security, encouraging downstreaming, and achieving national industrial self-reliance. The project simultaneously supports two main mandates of Pupuk Indonesia Group, namely strengthening food security through diversifying nitrogen sources for NPK fertilizer production and achieving industrial sovereignty through the development of domestic chemical raw materials, while maintaining a strong commitment to sustainability through CO₂ utilization.
“This is a project leading toward a green transition. It incorporates carbon capture, while also diversifying nitrogen sources for our NPK fertilizer production needs,” said Rahmad.
The plant is designed to have a production capacity of 300,000 tons per year of soda ash and 300,000 tons per year of ammonium chloride. The presence of this facility is expected to reinforce domestic industrial raw material supply while reducing dependence on imported products.
Soda ash is a basic chemical widely used in glass, detergent, paper, textile, and water treatment industries. Meanwhile, ammonium chloride can be utilized as a nitrogen source in NPK fertilizer production as well as for various other industrial needs. Thus, developing both products not only expands the business portfolio, but also supports the reinforcement of national industrial supply chains and the agricultural sector.
Meanwhile, President Director of Petrokimia Gresik, Daconi Khotob, stated that the signing of the EPCC contract marks an important milestone following a series of project preparation and discussion processes. According to him, the construction of this plant holds strategic value as it not only opens business development opportunities, but also supports company efforts to enhance resource utilization in a more sustainable manner.
“For Petrokimia Gresik, this is extremely important. Not only for the business aspect, but also for the environmental aspect due to significant CO₂ absorption,” Daconi stated.
In its production process, the plant will utilize CO₂ from Petrokimia Gresik's existing facilities as a raw material for soda ash manufacturing. This integration is expected to increase the added value of CO₂ utilization while supporting company efforts to reduce carbon emissions from industrial activities.
In addition to providing environmental benefits, the construction of this plant opens opportunities for Petrokimia Gresik to strengthen its chemical business through the provision of value-added products. Its location within the Gresik industrial estate is considered strategic due to its proximity to several end-user industries, thereby potentially enhancing distribution efficiency and product competitiveness in the domestic market.
Daconi emphasized that project success requires solid coordination and commitment from all parties, particularly Petrokimia Gresik as the project owner and Rekind as the EPCC contractor.
“For us, the success of this project is not merely about building a new production facility, but also ensuring that every phase proceeds according to plan. Therefore, synergy among all parties is vital so that the project can be completed on time, within budget, and meeting established quality standards,” Daconi emphasized.
From the execution perspective, President Director of Rekind, Triyani Utaminingsih, stated that Rekind's involvement in the construction of the Soda Ash and Ammonium Chloride Plant demonstrates the company's commitment to supporting the development of national strategic industrial facilities. As the EPCC contractor, Rekind will carry out work spanning engineering, procurement, construction, to commissioning, backed by technology partners in implementing soda ash production technology.
The project, which applies HOU technology, is targeted for completion within a timeframe of 34 months. Triyani emphasized that Rekind will prioritize quality, safety, and execution precision across every construction phase.
“We are committed to ensuring that project execution runs optimally by prioritizing quality, safety, timeliness, and the reliability of construction outcomes,” Triyani stated.
Through the synergy of Pupuk Indonesia, Petrokimia Gresik, and Rekind, the construction of the Soda Ash and Ammonium Chloride Plant is expected to serve as a concrete step in strengthening national chemical industry self-reliance while driving the transformation toward a more environmentally friendly industry. This project also forms part of Pupuk Indonesia Group's commitment to boosting domestic industrial competitiveness through the development of value-added products and sustainable resource utilization.
Attachments
| File | Type | Size | Download |
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| 75 Penandatangan Proyek Soda Ash FINAL docx | 144 KB | Download |
