Pupuk Indonesia to Build World’s First Hybrid Green Ammonia Project, Seeks Rp 54 Trillion for Plant Revitalization
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JAKARTA, investortrust.id — PT Pupuk Indonesia has announced plans to build the world’s first hybrid green ammonia project, alongside a Rp 54 trillion investment in fertilizer plant revitalization, as part of its strategy to reduce emissions while strengthening national food security.
The announcement was made by President Director of PT Pupuk Indonesia, Rahmad Pribadi, at the Green Energy Summit 2025 themed “Just Energy Transition: Protecting the Earth, Ensuring Prosperity” hosted by Investortrust.id at Hotel JW Marriott, Jakarta, on Tuesday, Sept 23, 2025.
Rahmad said the hybrid green ammonia project will combine water and natural gas as feedstock in the same facility. “In Japan, tenders have already started to convert coal needs into ammonia and coal. For green energy, we are preparing a project that is global first. This will be the first time in the world we create a hybrid,” Rahmad explained.
He added that the project is being developed in partnership with Japan through TOYO and Itochu. “We signed the agreement when the Japanese minister and Mr. Rosan were present. We received a grant from the Japanese government because this will be the first in the world,” Rahmad said.
Pupuk Indonesia currently has an ammonia production capacity of 7 million tons. Rahmad projected that by 2050, the company’s “grey” share would fall to about 1.8 million tons, with carbon dioxide still required for urea production. “We see clean ammonia as a strategic opportunity to balance energy demand with food security, while protecting the company from supply chain and environmental disruptions,” he said.
At the same event, Rahmad also underscored the need for large-scale fertilizer plant revitalization to modernize aging facilities, improve energy efficiency, and cut emissions. He revealed that the company requires Rp 54 trillion for this program.
“Our factories are old. We have not built a new one since 2003. To revitalize them, we need Rp 54 trillion. If we replace them, average consumption will drop from 32 to 24, meaning 50 percent of emissions can be reduced,” Rahmad said.
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The centerpiece of the revitalization effort is Pusri 3B, a Rp 10 trillion project at PT Pupuk Sriwidjaja Palembang that will replace the inefficient Pusri III and IV plants. Construction began in December 2023 and is scheduled for full operations in 2027, producing ammonia and urea with modern, energy-efficient technology.
Rahmad emphasized that Pupuk Indonesia is not only vital for food security but also for national industry, since its gas-based fertilizer products support 12 other sectors. “If fertilizer is disrupted, 12 other industries will also be disrupted. Food security is the foundation, industry is the driver, and both meet at Pupuk Indonesia,” he said.
He concluded that decarbonization, revitalization, and innovation in clean ammonia are central to Pupuk Indonesia’s mission. “We are excited to keep supporting food security, becoming an energy pillar while reducing carbon emissions. This is not just a plan, we are already executing projects, including plant revitalization,” Rahmad said.