The company's President Director, Budi Antono, affirmed that development of the plant is part of its plan to expand business to ASEAN nations.
"Timor Leste has offered this to us. If we do not take the offer, then New Zealand and Australia will. This is a good opportunity for PT Dahana," Antono remarked at a discussion here on Tuesday.
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In spite of its comparatively small investment of some Rp15 billion, development of the plant is an attractive expansion, as its products are open for export to New Zealand and Australia.
Timor Leste will build a port and open mines for which it will require explosives in its development.
Antono explained that for road construction, it would be more efficient to build a tunnel than cut along the face of hills, taking into account the country's mountainous geographical terrain.
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The explosives plant is expected to have an annual production capacity of up to one thousand tons.
Construction of the plant will take at least a year to complete, he stated.
PT Dahana is a state-run company operating in the explosive industry as well as military equipment, such as rocket and bullets. Related news: Wiranto-Xanana sign agreement to complete land border issues