The new company will produce green ammonia for marine fuel with technologies developed by Toyo in the 2000s.
Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed that Japan will provide a grant of US$25 million for the development of the national green ammonia industry.

According to the statement received here on Monday (August 26), the grant will be provided to Pupuk Iskandar Muda (PIM), a subsidiary of state-owned fertilizer company Pupuk Indonesia in Aceh.

The company was developed through the "Green Ammonia Initiative from Aceh" (Project GAIA) scheme between Pupuk Indonesia and Japanese companies Itochu Corporation and Toyo Engineering. They have agreed to set up a joint venture company.

Hartarto noted that the front-end engineering design for the PIM factory was started this month. The final investment decision will be made by early 2025, and the factory is expected to operate commercially by 2027.

Meanwhile, Investment Minister and Head of the Investment Coordination Board (BKPM) Rosan Roeslani highlighted that investments in zero-emission projects are attractive for the international market.

"Hence, we should be active (to encourage foreign investments) since we have huge potentials (in green investment)," Roeslani remarked.

Moreover, President Director of Pupuk Indonesia, Rahmad Pribadi, explained that the new company will produce green ammonia for marine fuel with technologies developed by Toyo in the 2000s. The green ammonia will then be supplied to Itochu, which will produce the finished marine fuel product.

Apart from advancing the transition to clean energy to achieve a net zero emission target by 2060, he said the new company will help Pupuk Indonesia diversify its business on green energy.

"The cooperation will help Pupuk Indonesia diversify its business outside of (creating) food resilience (through fertilizers) but also help industry downstreaming and provide added value for the national economy," Pribadi remarked.

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Translator: Uyu Liman, Nabil Ihsan
Editor: Arie Novarina
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