Blue ammonia plant in Bintuni Bay to start construction by 2026

Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia stated that the construction of a blue ammonia plant in Bintuni Bay Regency, West Papua Province, will begin in 2026. Blue ammonia, produced from natural gas (natgas), is produced to optimize carbon emission reductions, support the energy transition, address clean energy needs, and increase regional revenue.

"The investment value for blue ammonia is about US$1.2 billion, or more than Rp10 trillion," he said while attending the 22^nd anniversary celebration of Bintuni Bay Regency, as quoted by Antara May 11, 2025.

Bahlil explained that the development of the downstream industry development project is the Indonesian government's response to the expectation of the people of Bintuni Bay, one of the largest natgas producing regions in Indonesia. He added that the central government will collaborate with the West Papua Provincial Government and the Bintuni Bay Regency Government to accommodate local entrepreneurs in the downstream project.

"The governor and the regent recommended professional and qualified local Papuan entrepreneurs. This is a major investment," Bahlil said.

He then promised to work towards increasing the oil and gas revenue sharing fund (DBH), as Bintuni Bay Regency contributes to national energy sovereignty. The ESDM Minister has also been communicating with Genting Group subsidiary Genting Oil Kasuri, which is investing in Bintuni Bay Regency, to ensure that the additional oil and gas DBH could be realized in 2027.

"Genting Oil will begin production in 2027, so the oil and gas DBH could be realized," he said.

Prior to the realization of additional oil and gas DBH, Bahlil noted, the regional governments involved must prepare regulations that serve as the legal basis for the 10 percent oil and gas participating interest policy.

"I guarantee that the PI for Bintuni and West Papua will be issued in 2026 if all the regulations are ready," he concluded.