BNI Finances Ammonium Nitrate Plant

Jakarta, 26 November 2019 --- PT Bank Negara Indonesia (Persero) Tbk or BNI signed a Credit Agreement with PT Kaltim Amonium Nitrate to build an Ammonium Nitrate Plant in Bontang, East Kalimantan. The plant with a capacity of 75,000 tons per year is expected to meet the needs of major explosives needed domestically.

The signing of the Credit Agreement was carried out by the Director of PT Kaltim Amonium Nitrat, Bimo Noesantoropoetro together with the Head of the SOEs and Government Institution Division of BNI, Babas Bastaman in Jakarta, Tuesday (November 26, 2019). Attending the event were the Consumer Business Director of BNI, Anggoro Eko Cahyo, the President Director of PT DAHANA (Persero), Budi Antono, and the Director of Engineering and Development of PT Pupuk Kalimantan Timur, Satriyo Nugroho.

PT Kaltim Amonium Nitrat is a joint venture between PT DAHANA (Persero) through its subsidiary PT Dahana Investama Corp and PT Pupuk Kalimantan Timur which is a subsidiary of PT Pupuk Indonesia (Persero). BNI has previously provided support to meet the financing needs of the shareholders of PT Kaltim Amonium Nitrat namely PT DAHANA (Persero) since 2012 and PT Pupuk Kalimantan Timur since 2013.

Anggoro said, "BNI provides full support for the business of PT DAHANA (Persero) and PT Pupuk Kalimantan Timur to realize the independence of the explosive industry in the country, especially Ammonium Nitrate which is the main raw material for explosives that will support the mining industry," he said.

Meanwhile, the President Director of PT DAHANA (Persero), Budi Antono revealed that all products produced from the Ammonium Nitrate Plant will be taken by PT DAHANA (Persero) to meet some of the Ammonium Nitrate needs of PT DAHANA (Persero). The main raw material for the production of Ammonium Nitrate, namely ammonia, will be provided by PT Pupuk Kalimantan Timur.

Budi Antono added, "The construction of the Ammonium Nitrate Plant is expected to be a catalyst for the growth and development of derivative industries both for commercial and defense industries.”.  

With a total investment of around Rp 1.1 trillion, the construction of the Ammonium Nitrate Plant will be carried out by the Consortium of PT Wijaya Karya and Sedin Engineering, Co Ltd. The construction will take around 30 months, starting from the end of this year. With financing of Rp 796 billion from BNI, it is expected that the construction of the Ammonium Nitrate plant can be realized on time to encourage the independence of the explosives industry in Indonesia, so that the national explosives industry can become a "MASTER IN OWN STATE". 


For more information, please call:

Corporate Secretary BNI

Phone: 021-5728387



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