Indonesia NPK Nitrate plant construction has officially begun, marking a major milestone for the country’s fertilizer industry and its efforts to reduce dependence on imports. The project, led by Pupuk Indonesia Group, is targeted for completion in 2027 and represents the first NPK Nitrate fertilizer plant in the country.
The groundbreaking ceremony took place in Karawang, West Java, on December 23. The new facility aims to strengthen national fertilizer capacity while supporting long-term agricultural development.
Indonesia NPK Nitrate Plant to Replace Imports
Pupuk Indonesia President Director Rahmad Pribadi described the project as a historic step for Indonesia’s agriculture and fertilizer sector. He stated that the plant would serve as a new foundation for the future growth of domestic fertilizer production.
Currently, Indonesia meets its NPK Nitrate demand entirely through imports, which amount to around 450,000 tons per year. According to Rahmad, the new factory will act as the first concrete move toward import substitution.
In its initial phase, the Indonesia NPK Nitrate plant will have a production capacity of 100,000 tons per year at Pupuk Kujang. Over time, Pupuk Indonesia aims to supply most of the domestic market through local production.
Strong Revenue Potential with Farmer-Friendly Pricing
At current market prices ranging between IDR 13 million and IDR 15 million per ton, the plant offers significant revenue potential. Rahmad noted that annual revenue could reach up to IDR 1.5 trillion at full capacity.
However, he emphasised that profitability is not the sole objective. Pupuk Indonesia has committed to ensuring fertilizer affordability, particularly for farmers in the horticulture sector.
As part of the feasibility study, the company has adjusted the planned selling price of NPK Nitrate. This approach aims not only to replace imports but also to reduce overall agricultural production costs.
Investment, Timeline, and Safety Priorities
The Indonesia NPK Nitrate plant involves an investment of nearly IDR 600 billion. Construction is scheduled to be completed within 21 months, with commissioning targeted for 2027.
Rahmad stressed the importance of meeting project timelines while maintaining strict quality standards. He also highlighted the need for tight budget control and strong occupational safety practices, given that this will be Indonesia’s first domestically produced NPK Nitrate.
According to Pupuk Indonesia, the project is expected to enhance fertilizer self-sufficiency and strengthen national food security in the coming years.
