About

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.

PT KNI completes and adds up selection to the line of high-tech petrochemical industry, like fertilizer manufacturers, refinery and other petrochemical industries. PT KNI is run by top young Indonesians recruited from all across Indonesia as well as those who have experience working for foreign petrochemical manufacturers. PT KNI will increase the Ammonium Nitrate (AN) capacity for domestic demand until about 50% of its total demand in 2013. The plant construction commenced in August 2009 to specifically cater to the growing mining industry. In the past, local mining companies have been dependent on imported AN. PT KNI seeks to bring increased security of supply by being a local and reliable supplier of world class AN. The plant construction commenced in August 2009 to specifically cater to the growing mining industry. In the past, local mining companies have been dependent on imported AN. PT KNI seeks to bring increased security of supply by being a local and reliable supplier of world class AN. The plant started production in April 2012, starting a new phase in the mining industry in Indonesia.

KNI Strategic Objectives

VISION

"Always be the best Ammonium Nitrate producer in the world."

Key to KNI Success

Our Strategic Objectives and Business Vision will be achieved by focusing on the following areas:

01

The superiority of process safety and plant integrity to ensure the long-term sustainability of the Bontang KNI plant.

02

Excellence in providing reliable facilities that are able to produce the highest quality products in the world.

03

Process control excellence to ensure consistent product quality and achieve optimal conversion and energy efficiency

04

Advantages of upstream to downstream Supply Chain (suppliers to customers) to ensure the availability of the right product at the right time.

05

The excellence of continuous improvement capability to ensure that the main capabilities of manufacturing develop to the best level.

06

The excellence of operational and HR culture to support and encourage our activities to always be the “Best Ammonium Nitrate Manufacturer in the World.”