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The Explosives and Firearms Business in Indonesia

Monday, 18 October 2010

Presently there are at least five companies that have permits for the procurement and distribution of explosives (ammonium nitrate) in Indonesia, PT Pindad, PT Dahana, PT Multi Nitrotama Kimia (MNK), PT Tridaya Esta, and PT Armindo Prima.  These five importers and distributors of explosives are regulated by Decree of the Minister of Industry and Trade No. 230/MPP/Kep/1997 concerning Controlled Imports.  The two companies licensed to import ammonium nitrate are Perum Dahana and PT Multi Nitrotama Kimia (MNK) (established pursuant to Presidential Decree No. 86/1994).  However, the fact is that aside from these two companies, PT Tridaya Esta also imports ammonium nitrate.

PT Pindad and PT Dahana are state enterprises that are specifically involved in supplying explosives for the military.  MNK, on the other hand, supplies explosives to industry (this company is 30% owned by Pupuk Kujang, 30% by Yayasan Dakab, and 40% by PT Bimantara).  To date, PT MNK is the only company that produces (as well as imports) ammonium nitrate.  “Over the past two years”, he explained, “PT MNK has produced 30,000 tons of ammonium nitrate.  Total domestic demand for ammonium nitrate in 1999, in the meantime, was an estimated 120,000 tons”.  PT MNK customers are large corporations, including PT Freeport, PT Semen Padang, PT Semen Gresik, PT Semen Tonasa, and several gold, coal and nickel mining companies.

PT Tridaya Esta is also specifically involved in supplying explosives to industry.  This company is owned by the son of Soeharto, Bambang Trihatmodjo, and the President Director is Indra Bambang Utoyo.  Another company is PT Armindo Prima, which as well as being involved in the supply of explosives, also owns explosives warehouses.

Today, there are eight importers and suppliers of firearms recommended by the Indonesian Police. They are PT Armindo Prima, PT Budiman Maju Megah (BMM), PT Empat Enam, PT Elektrindo Nusantara, PT Lokta Karya Perbakin, PT Anur Citra Usaha Pradana, PT Cahaya Mentari Nusantara Permai, and PT Triyuda.

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