Japan Grants $25 Million for Development of Indonesia’s Green Ammonia Industry
Jakarta, The Gulf Observer: Coordinating Minister for Economic Affairs Airlangga Hartarto announced that Japan will provide a grant of USD 25 million for the advancement of Indonesia’s national green ammonia industry. The grant is designated for Pupuk Iskandar Muda (PIM), a subsidiary of the state-owned fertilizer company Pupuk Indonesia, located in Aceh.
The funding is part of the “Green Ammonia Initiative from Aceh” (Project GAIA), a collaborative effort between Pupuk Indonesia and Japanese firms Itochu Corporation and Toyo Engineering, which will jointly establish a new venture. The project aims to develop green ammonia as a sustainable marine fuel.
Hartarto revealed that the front-end engineering design for the PIM factory has commenced this month. The final investment decision is expected by early 2025, with the factory projected to begin commercial operations by 2027.
Investment Minister and Head of the Investment Coordination Board (BKPM) Rosan Roeslani emphasized the attractiveness of investments in zero-emission projects for the international market. “We should actively encourage foreign investments, as Indonesia has significant potential in green investment,” Roeslani stated.
Pupuk Indonesia’s President Director Rahmad Pribadi explained that the new company will utilize technologies developed by Toyo in the 2000s to produce green ammonia. This ammonia will be supplied to Itochu, which will then convert it into marine fuel.
Pribadi highlighted that this venture not only supports Indonesia’s transition to clean energy and its 2060 net zero emission goal but also helps diversify Pupuk Indonesia’s business into green energy. “The cooperation will enhance our business scope beyond food resilience and add value to the national economy,” he remarked.
