Indonesian Ammonia Industry Prospec Development


Industry & Marketing Prospects of AMMONIA in Indonesia

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Industry & Marketing Prospects of AMMONIA in Indonesia, In conditions where agricultural land is decreasing, while Indonesia’s population continues to grow, food needs also increase which in turn triggers an increase in fertilizer demand.

The government’s budget for fertilizer subsidies in 2015 was is proven that the agricultural sector will become a mainstay in future national economic growth, and such conditions will certainly contribute to the increase in ammonia consumption in Indonesia in the coming years.

Besides fertilizer, ammonia is also used as a raw material in the manufacture of ammonium nitrate and nitric acid, both of which are used as explosives for the mining, cement and construction industries. Of the three industrial sectors, only the mining industry, especially coal mining which has decreased in 2 or 3 years. The price of coal in the international market has dropped quite drastically due to the global economic slowdown that affected the problems among coal entrepreneurs which indirectly reduced the need for ammonia in this sector.

While the construction and cement industries appear to be growing, especially since the administration of President Joko Widodo revived the development of various infrastructures to attract investment, both foreign and domestic, with the hope that the national economy will grow and develop. This will certainly have an impact on increasing demand for ammonia. Another potential industrial sector absorbing ammonia is the melamine, ammonium chloride industry and others.

Considering the above conditions, BIZTEKA was encouraged to discuss further about the industry prospects and marketing of ammonia and its derivatives in Indonesia. It also discusses the development of ammonia supply and demand in the local market, prices and market opportunities in Indonesia in the next five years.