BATAM, Indonesia, Nov. 4, 2026 /PRNewswire/ -- Pupuk Indonesia, the state-owned petrochemical company, is exploring an ammonia hub in Batam that would turn Indonesian natural gas into products for domestic industry and export, including ammonia as a future marine fuel. The company is looking at gas supplies from the Natuna region and Grissik, as Indonesia's gas supply contract with Singapore is set to expire in 2028. The project, valued at up to US$500 million, would offer integrated infrastructure for ammonia production, bunkering, distribution, and trading, serving both domestic and international markets.

On November 2, Pupuk Indonesia President Director Rahmad Pribadi and his team held initial discussions with BP Batam, the Batam Indonesia Free Zone Authority, led by its Head, Amsakar Achmad, at the authority's offices in Batam, Riau Islands.

"President Prabowo Subianto has emphasized that natural resources are the lifeblood of our economy and must be used to strengthen it. Energy and Mineral Resources Minister Bahlil Lahadalia has similarly underscored the priority of meeting domestic needs in natural gas utilization," Rahmad said. "As a company that relies on gas as a core feedstock for ammonia, Pupuk Indonesia has a significant role to play."

Learning from Singapore, building for a new fuel market

Rahmad cited Singapore's five-decade development of oil refining and maritime services, which established it as the world's largest bunkering hub. As global shipping transitions to lower-carbon fuels, he said, Indonesia has an opportunity to build comparable capabilities from its own gas resources—including ammonia bunkering.

This shift is being driven by the International Maritime Organization's Net-Zero Framework, which promotes the adoption of low- and zero-emission fuels such as ammonia. In the Asia-Pacific region, Australia, Singapore, and South Korea are already progressing with ammonia technologies and infrastructure, including bunkering facilities.

Pupuk Indonesia says it is well positioned to enter this market with an ammonia production capacity of approximately 7.1 million tons, the company ranks among the largest producers in the Asia-Pacific and Middle East and North Africa (MENA).

"This is not about resource nationalism—it is about resource industrialization," Rahmad said. "We remain open to collaboration. What matters is that added value is created and retained in Indonesia."

BP Batam pledges support

BP Batam Deputy for Investment Fary Djemy Francis welcomed the proposal, pledging support for licensing and land allocation once an agreement is reached. When the project is ready for investment, he said, BP Batam will form a joint team with Pupuk Indonesia to advance its development.

"We will also help accelerate the subsequent processes, including licensing once an agreement has been reached, as well as land allocation arrangements. More importantly, once the project reaches the ready-to-invest stage, BP Batam will establish a joint team with Pupuk Indonesia to facilitate its progress," Fary Djemy said.

The proposal aligns with President Prabowo's vision of Batam as a model for growth anchored in regional strengths.