History of the Incorporation of PT Kaltim Nitrate Indonesia
PT Kaltim Nitrate Indonesia (PT KNI) was incorporated in 2001 as
a foreign investment company (PMA).
Since its incorporation, the Company has aimed to invest in the form of constructing an Ammonium Nitrate
(AN) factory. PT KNI’s share ownership at incorporation was of Armindo Group by 51% as the majority
shareholder, partnering with foreign company, Orica International, for the remaining 49% of shares.
Incorporated in 1981, Armindo has since been engaged as an importer (agent) and distributor of commercial
explosives. As the business continued to grow, Armindo decided to enter the industry by constructing an AN
factory. Meanwhile, Orica has started its business in explosive field for mining in Australia since the end
of the 19th century. Currently, Orica holds the world’s largest market share in the commercial
explosive market. With the promulgation of Permenhan (Defense Ministerial Regulation) No. 22 of 2006 and
Perpres (Presidential Regulation) No. 76 & 77 TT of 2007, KNI’s existence and licenses as a
Foreign Investment Company(PMA) for AN producers refer to these two regulations.
KNI started its factory construction in 2009, based on the Decree of the Minister of Defense of the Republic
of Indonesia No. KEP/10/M/IV/2008 dated April 1, 2008, on 10 hectares of land in Kaltim Industrial Estate
industrial area that has been owned by KNI since 2006.