The project, valued at up to US$500 million, will offer integrated infrastructure for ammonia production, bunkering, distribution and trading, serving both domestic and international markets. With Indonesia’s gas supply contract with Singapore set to expire in 2028, Pupuk Indonesia is looking at gas supplies from the Natuna region and Grissik.

On Nov. 2, Pupuk Indonesia president director Rahmad Pribadi and his team held initial discussions with the Batam Free Trade Zone Authority (BP Batam), led by its head Amsakar Achmad, at the authority’s offices in Batam, Riau Islands.

“President Prabowo Subianto has emphasized that natural resources are the lifeblood of our economy and must be used to strengthen it. Energy and Mineral Resources Minister Bahlil Lahadalia has similarly underscored the priority of meeting domestic needs in natural gas utilization,” Rahmad said.

“As a company that relies on gas as a core feedstock for ammonia, Pupuk Indonesia has a significant role to play.”

Rahmad cited Singapore’s five-decade development of oil refining and maritime services, which established it as the world’s largest bunkering hub.

As global shipping transitions to lower-carbon fuels, he said, Indonesia has an opportunity to build comparable capabilities from its own gas resources, including ammonia bunkering.

This shift is driven by the International Maritime Organization’s Net-Zero Framework, which promotes the adoption of low- and zero-emission fuels such as ammonia. In the Asia-Pacific region, Australia, Singapore and South Korea are already progressing with ammonia technologies and infrastructure, including bunkering facilities.

Pupuk Indonesia says it is well positioned to enter the market with its ammonia production capacity of approximately 7.1 million tonnes, ranking among the largest producers in the Asia-Pacific and Middle East and North Africa (MENA) region.

“This is not about resource nationalism, but resource industrialization. We remain open to collaboration. What matters is that added value is created and retained in Indonesia,” Rahmad said.

BP Batam deputy for investment Fary Djemy Francis welcomed the proposal, pledging support for licensing and land allocation once an agreement is reached. When the project is ready for investment, he continued, BP Batam will form a joint team with Pupuk Indonesia to advance its development.

"We will also help accelerate the subsequent processes, including licensing once an agreement has been reached, as well as land allocation arrangements. More importantly, once the project reaches the ready-to-invest stage, BP Batam will establish a joint team with Pupuk Indonesia to facilitate its progress," Fary said, adding that the proposal aligns with President Prabowo’s vision of Batam as a model for growth anchored in regional strengths.

Popular

Ten years lost in two

Troops descend on Jakarta amid wiretapping scandal

PLN Batam provides compensation for blackout, reshuffles management