GREEN TRANSITION IN THE FERTILIZER INDUSTRY: EVALUATING THE IMPACT OF NET ZERO EMISSIONS POLICY ON PUPUK INDONESIA'S INVESTMENT INITIATIVES IN GREEN AND BLUE AMMONIA PLANT DEVELOPMENT

• Main Author: Pramono, Gunawan
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/85893
• Institution: Institut Teknologi Bandung

Indonesia recognizes the importance of sustainable agriculture and actively promotes initiatives and research to identify and implement best practices for reducing ammonia emissions. This study aims to assess whether PT Pupuk Indonesia's strategy to build green and blue ammonia plants yields positive outcomes from the perspectives of sustainability and commercial viability, as well as its contribution to achieving Indonesia's net-zero emissions policy. The study employs Critical System Heuristic (CSH), Causal Loop Diagram (CLD), and simple sensitivity analysis approaches to visually represent feedback loops and systemic relationships. The findings suggest that investments in green and blue ammonia production foster technological innovations that enhance operational efficiency and reduce carbon emissions by approximately 30% in 2050. However, an initial increase in emissions is about 10% is noted due to increased production capacity. The study emphasizes that CO2 emission reduction should be a priority in investment decisions, with a focus on adopting cleaner technologies and practices that provide substantial environmental benefits. Government policies, incentives, and potential sanctions play crucial roles in shaping investment strategies. PT Pupuk Indonesia is advised to implement policies that ensure the long-term feasibility of these projects by focusing on favorable conditions that provide a strategic advantage to Pupuk Indonesia's investments, as well as seeking collaborations with governmental bodies to secure incentives and support for sustainable investments