JAKARTA – PT Pupuk Indonesia (Persero) is serious about developing green ammonia in Indonesia. In fact, PT Pupuk Indonesia (Persero) wants to make Indonesia a hub for the world Ammonia market. 

Pupuk Indonesia Marketing Director Gusrizal said that in order to make Indonesia a hub for the world ammonia market, there are several things that must be done. First and most important is to build Human Resources (HR).

"To achieve optimal targets, of course companies need to have reliable human resources. For this reason, strengthening human resources needs to be aligned with the development of the infrastructure but also the market and commercial side," he said at the Pupuk Indonesia Clean Ammonia Forum (PICAF) event as quoted on Sunday ( 2/4/2023).

In addition, Gusrizal also hopes for support from the government by providing incentives. Bearing in mind, the development of clean ammonia is also concrete evidence to support the government's energy transition program towards Net Zero Emissions in 2060.

"And we have to get support from the government, we have talked about subsidy incentives because this is a new product so we need support from the government. But this is the key to this success," he explained. 

General Manager of Methanol & Ammonia, Mitsui & Co Ltd, Konichi Asano said, Indonesia has its own attractiveness for investors to develop Clean Ammonia. Bearing in mind, Indonesia already has a clear plan for developing Ammonia in the country.

Quoting Pupuk Indonesia's road map, in 2030 green ammonia production will reach 0.99 million tons, blue ammonia will reach 2.15 million tons. Meanwhile, the production of gray ammonia (a raw material for fertilizer) is 7 million tonnes. 

Then the production target for blue ammonia in 2040 will increase again to 3.46 million tons, green ammonia is still 0.99 million tons, and gray ammonia is 7 million tons. Meanwhile, in 2050, net ammonia production is estimated to reach around 7 million tons, including blue ammonia reaching 3.56 million tons and green ammonia increasing to 3.4 million tons.

"In Indonesia, not only blue ammonia but also green ammonia increases our opportunities to invest and I think as I explained the demand for green and blue ammonia will increase especially in Asia and of course globally," he said. 

Chief Technology Officer & Fuels of Maersk Mc-Kinney Moller Center for Zero Carbon Shipping Denmark, Torben Norgaard said, the opportunity to seize the world's Ammonia market is very large. As long as there is an improvement in terms of the value of the supply chain.

"The supply value chain can then reach the desired scale and then be independent and competent with alternatives," he said.