JAKARTA – The Ministry of BUMN asked PT Pupuk Indonesia to play a role in the use of clean energy, one of which is through the use of ammonia. SOE Deputy Minister I Pahala Mansury said the use of blue and green ammonia in the world will continue to increase in the future.

"Some predictions made by think tanks say that 12 percent of world energy ahead of 2050 will use hydrogen as an energy source and I think this can be the key to Indonesia's economic recovery. PT Pupuk Indonesia can develop blue and green ammonia by collaborating with a number of parties, both from within the country, such as Pertamina and also with outsiders," Pahala said as a keynote speaker at the 2023 Pupuk Indonesia Clean Ammonia Forum (PICAF) in Jakarta, Thursday (30/2/2023).

Pahala added that the use of ammonia could help the government achieve its target of net zero emissions by 2030. Therefore, according to the recently issued SE Ministerial Decree on decarbonization, Pahala asked PT Pupuk Indonesia and other BUMNs that have made a major contribution to reducing national emissions to make road map in the use of clean energy.

In order to create an ammonia ecosystem, PT Pupuk Indonesia held the Pupuk Indonesia Clean Ammonia Forum (PICAF) 2023. PT Pupuk Indonesia President Director Bakir Pasaman said this forum was launched as a form of support to promote a clean (low carbon) ammonia ecosystem.

According to Bakir, Pupuk Indonesia hopes that through PICAF 2023 it can accelerate the implementation of technological innovations and policy development to strengthen the clean ammonia value chain. This is an extension of Pupuk Indonesia's commitment to support Indonesia's Sustainable Development Goals.

“Pupuk Indonesia currently has more than 50 years of experience in the ammonia industry. Therefore, this expertise allows us to see the potential for clean ammonia to support the low-carbon energy transition. With the development of clean ammonia, Pupuk Indonesia is committed to playing an active role in supporting the achievement of net zero emissions, which targets to reduce carbon emissions equivalent to five million tons of CO2 by 2050," said Bakir.

Bakir hopes that the initiative to develop a clean ammonia ecosystem will trigger a multiplier effect on the Indonesian economy, as well as support Indonesia's commitment to achieve net zero emissions. Therefore, Bakir is optimistic that PICAF 2023 can benefit all participants and become a momentum to encourage the creation of a clean ammonia ecosystem in Indonesia.

Special Advisor to the Ministry of Energy and Mineral Resources (ESDM) Triharyo Soesilo revealed that a number of important points must be made by PT Pupuk Indonesia if it is interested in developing blue and green ammonia.

According to Triharyo, one of the important points that has not been carried out so far is establishing cooperation with subsurface companies that have CO2 reservoir (storage) capacity to be able to successfully develop Blue and Green Ammonia.

"Returning to Pupuk Indonesia's interest in developing Blue Ammonia and also Green Ammonia, my suggestion for the Ministry of Energy and Mineral Resources, number one, if you want to do it, you have to work with companies below the surface," said Triharyo.

Not only that, Triharyo also said that an understanding of the Carbon Market is needed to recover some of the investment costs of CCS/CCUS Capex and Opex, in order to improve their economy.

“Second, you have to find and develop carbon marketing yourself. You are very good at selling your own carbon, urea, ammonia, and buying sulfur and phosphates. However, you have to start developing carbon economy skills,” he explains.

Meanwhile, if PT Pupuk Indonesia is interested in producing Green Ammonia, it requires an understanding of Electrolyzer technology, selecting a factory location with minimum electricity costs, and the need to understand market demand and prices for Blue and Green Ammonia.

"Next for Green Ammonia, you need an understanding of Electrolyzer Technology, this is very important for Green Ammonia production, and you need to choose a factory location with minimum electricity costs," he said.

Acting Director General of the Chemical, Pharmaceutical and Textile Industries (IKFT) of the Ministry of Industry, Ignatius Warsito, revealed that global ammonia demand is predicted to reach 688 million tons in 2050. This amount has increased three times compared to demand in 2025.

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