Through the initiative, the company aims to position Indonesia as an ammonia bunkering hub in the Asia-Pacific.

Pupuk Indonesia president director Rahmad Pribadi noted that while ammonia had traditionally been known as raw material for the fertilizer industry, the chemical compound possessed promising characteristics as a fuel of the future, particularly for the shipping sector.

"The initial narrative surrounding ammonia centers on its role in food production. However, the next chapter involves utilizing ammonia as an energy source. This represents a massive opportunity, as demand is projected to continue growing," said Rahmad.

Pupuk Indonesia plans to develop an ammonia bunkering hub in Batam, a highly strategic location near the Strait of Malacca and major international shipping lanes in close proximity to Singapore, the world’s largest bunkering port.

"Indonesia’s geography is both a strength and a climate asset. Batam is particularly attractive due to its proximity to one of the world’s busiest bunkering hubs,” he said.

“We see an opportunity to develop an ammonia refueling facility there, allowing vessels passing through the region to utilize ammonia as an alternative fuel."

Beyond Batam, Pupuk Indonesia sees potential for developing an ammonia ecosystem through production facilities operated by its subsidiary PT Pupuk Iskandar Muda (PIM) in Lhokseumawe, Aceh. The city’s position at the northern gateway to the Strait of Malacca serves as a strategic advantage for supplying ammonia to international shipping routes.

The company is also exploring the possibility of developing an ammonia bunkering facility in Bontang, East Kalimantan, to be integrated with the ammonia production facilities of regional subsidiary PT Pupuk Kaltim (PKT). These facilities and port infrastructure offer a foundation for expanding the national ammonia ecosystem.

As one of the largest ammonia producers in the Asia-Pacific, Middle East and North Africa (APAC-MENA) region with an annual ammonia production capacity of 7.1 million tonnes, Pupuk Indonesia is well-positioned to capitalize on the opportunity.

"In the past, we used ammonia to meet the public's food security needs. Moving forward, ammonia will become a vital pillar of the energy transition.

“We view this as a crucial energy transition and are committed to pursuing it seriously,” Rahmad said.

“Pupuk Indonesia holds a dual mandate: to support the nation in achieving food sovereignty and to drive industrialization toward more environmentally friendly practices,” he emphsized.

“Now this mandate has the potential to expand even further, as ammonia is set to be utilized as a fuel for the future."

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