PT. Kaltim Methanol Industri (PT.KMI)

PT. Kaltim Methanol Industri (PT.KMI) was incorporated under the laws of the Republic of Indonesia on January 25, 1991, as a local investment company (PMDN). This status has been changed to foreign investment company (PMA) on December 9, 1997, with Nissho Iwai Corporation as major shareholder (85%).

The Methanol Plant Project was started on November 21, 1990, by Joint venture Agreement PT Kaltim Methanol Industri (PT KMI) and PT Pupuk Kalimantan Timur (PT PKT) to build methanol plant at capacity 330.000 metric tons/year.
On January 25, 1991, PT Kaltim Methanol Industri was established. The shareholder are PT Humpuss (80%) and PT Pupuk Kalimantan Timur (20%), but as The Ministry of Finance approval, On August 27, 1992, PT Pupuk Kalimantan Timur withdrawn their share from PT Kaltim Methanol Industri.
On the other hand, BKPM approve for increasing design capacity
to 660.000 metric tons/year on October 15, 1992, (No. 798/III/PMDN/1992), while the shareholder had been changed to PT Humpuss (80%) and Mr. Hutomo MP (20%).

As EPC contract aggreement with Lurgi Oel Gmbh was signed on August 05, 1994, construction the project was started on June 22, 1995 by PT Lurgi Indonesia as main contractor with two sub contractor; PT Voest Alpine Duta and PT Ballast.
In paralel with the plant construction, the management of PT Kaltim Methanol Industri also recruite the expertise to operate the plant and also administration personnel. Related to this, for operating the plant, on October 10, 1996 The President Director of PT Kaltim Methanol Industri and PT Pupuk Kalimantan Timur sign an agreement for Human Resources and Utility

Share Purchase Agreement Natural gas as a raw material was delivered for the first time by Pertamina on January 23, 1997. The gas coming from from the Badak Gas Field Center, which under Pertamina
s Production Sharing Contractors (PSC), namely TotalFinaElf Indonesie, VICO Indonesia and UNOCAL. With gas available, the plant commissioning was started and followed by start up the plant on March 31, 1997.
After raw methanol first drop on February 29, 1998 and pure methanol (grade AA) first drop on March 8, 1998, the plant has beed continued to commersial production and achieved the nameplate capacity 660.000 metric tons/year on July 29, 2000. Currently, the plant is running on more then 2000 metric tons/day.



CAPITAL: US$80,374,000



EXPORT: 410,000MT

We are supplying our product to the customers producing formaldehyde, acetic acid, MTBE and various downstream chemical products using methanol as its raw material. In Indonesia, 80% of our customers are the manufacturers of formaldehyde resins to produce adhesives for plywood and other wood processing products. The rest of the 20% of our customers belong to solvent and polymer industries
Plant Location
Our plant is located inside the Kaltim Industrial Estate, Bontang, East Kalimantan, Indonesia. Main raw material for producing methanol is natural gas, supplied by PERTAMINA's Production Sharing Contractors (PSC), namely TotalFinaElf Indonesie, VICO Indonesia and UNOCAL, from the Badak Gas Field Center.
Our prominent geographical location can provide an easier access to the customers, particularly those in Asian region. This very strategic location also provides an advantage to PT.KMI for delivering its product to any ports in Asian region.

Plant Capacity and Production
Our plant started its commercial operation in 1998 with a design capacity of 2,000 metric tons of grade AA methanol per day, or 660,000 metric tons per annum.
Supported by 300 skilled employees, PT. KMI has achieved a production level slightly above the design capacity of the plant in 2000.

Technology Process
A low-pressure-synthesis processing Lurgi technology has been employed by PT. KMI to produce the methanol, which eventually has contributed to our target of producing methanol at low cost.

Jetty Facility
To support the methanol loading activities, we have built our own jetty with modern and sophisticated facilities.

Port Condition
Jetty Capacity : 30,000 DWT
Length of Arms (LOA) : 206 meters
Sea Draft : 10 meters
Loading Arm Capacity : 2 arms, each 1,000MT/hr

Methanol Carriers
A new dedicated 30,000 DWT methanol vessel named ?gShoko Maru?h was built in 1998 to serve the delivery of our product to Asian markets.
Besides this vessel, we are employing other 6-8 dedicated vessels of 1,700DWT to 5,000 DWT class to serve the delivery of our product to Southeast Asian and Indonesian domestic markets. At any time, we are ready to accommodate any small quantity of orders with our flexible and prompt delivery system.

Our Market 70% of our annual product, or approximately 480,000 metric tons, are allocated for exports to Japan, Korea, Taiwan, China and other Southeast Asian countries, and the rest of 30%, or approximately 180,000 metric tons, are for the Indonesian domestic markets.
As to the Indonesian domestic markets, supported by our qualified marketing officers, we have succeeded in maintaining our 60% market share since 1998 when we commenced our commercial operations.

Customer Services
The availability of our methanol in Indonesia, as well as our very sophisticated methanol delivery services, will fully support the adhesive and plywood industries in Indonesia. We are committed, therefore, to further improving our services to meet any requirements of our customers and contributing to further growth of wood-working industries in this country.

Regional Development Contribution
With the introduction of the autonomy law by the government of the Republic of Indonesia in 2001, the local government has been trying to pursue the development of its region. As one of the members of the industrial community in Bontang area, where our plant is located, PT KMI has been supporting the local government in achieving a rapid development of the region.

Plywood Industry Development
Indonesia has been trying to develop its natural resource based industries and earn more foreign exchange revenue which is critically needed for its economic development. The development of its plywood industry is one of the examples of the country
s efforts in this regard. Today Indonesian market share of world tropical hardwood plywood accounts for more than 70%. The plywood exports provide Indonesia with an average of around US$ 4 billion per annum or 12.25% of the total value of Indonesias non-oil/gas foreign exchange earnings. The plywood industry is creating job opportunities for approximately 16 million people throughout this country.