The Benefits of Producing Ammonium Sulfate from Synthetic Gypsum

Oct 13, 2025 by thesweetdesigns.com 3 views

# PRA Design of the Ammonium Sulfate Fertilizer Making Factory from Synthetic Gypsum Processing Results of the PLTU Desulfurization Flue Gas Unit with a capacity of 30,000 tons/year

The Importance of Ammonium Sulfate Fertilizer in Indonesia's Agricultural Sector

Indonesia is an agrarian country that relies heavily on fertilizer to support its agricultural sector. One type of fertilizer that is widely used is ammonium sulfate fertilizer, also known as ZA (zwafel ammonium). This fertilizer plays a crucial role as a source of nitrogen, particularly for industrial and plantation crops. According to data released by the Central Statistics Agency of Indonesia, there was a significant increase in the import of ammonium sulfate, reaching 268,451,459 kg in 2010. With the growing demand for fertilizer, producing ammonium sulfate from gypsum produced by the Flue Gas Desulfurization (FGD) unit in power plants (PLTU) is an attractive alternative to consider.

The Benefits of Producing Ammonium Sulfate from Synthetic Gypsum

Producing ammonium sulfate from synthetic gypsum has several benefits. Firstly, it reduces dependence on imports, which can help stabilize the country's foreign exchange reserves. Secondly, it utilizes waste from the FGD process, contributing to reducing waste and increasing environmental sustainability. Additionally, the existence of factories in Gresik is expected to absorb local workers, improve the regional economy, and support food security in Indonesia.

Factory Plan and Organizational Structure

The factory is planned to have a production capacity of 30,000 tons of ammonium sulfate fertilizer per year, operating for 330 days a year. The factory location will be built in Segoromadu, Gresik, East Java, with an area of around 12,900 m². The workforce needed to run this factory is estimated at 221 people. The proposed organizational structure for this factory is a Limited Liability Company (PT), which will be led by a director with a line organization system.

Economic Analysis and Feasibility Study

In the factory economic analysis, several results showed that investment in making ammonium sulfate fertilizer is feasible to do:

Total investment capital: Rp. 310,744,244,168
Total production costs: Rp. 287,061,598,399
Sales Results: Rp. 365,073,954,694
Net profit: Rp. 55,888,052,050
Profit Margin (PM): 21.26%
Break Even Point (BEP): 61.42%
Return on Investment (ROI): 17.99%
Pay Out Time (Pot): 5.56 years
Return on Network (RON): 29.98%
Internal Rate of Return (IRR): 31.04%

From the results of the analysis, it can be concluded that the factory making ammonium sulfate fertilizer with a capacity of 30,000 tons per year has good prospects to be established. The net profit generated shows a high profitability potential, while the large ROI and IRR values indicate that this investment will provide a significant return in a relatively short time.

Benefits for Agriculture and the Environment

The production of ammonium sulfate fertilizer from synthetic gypsum will not only meet the needs of fertilizer in Indonesia, but can also help reduce dependence on imports. By utilizing waste from the FGD process, this factory contributes to reducing waste and increasing environmental sustainability. In addition, the existence of factories in Gresik is expected to absorb local workers, improve the regional economy, and support food security in Indonesia.

Conclusion

Establishing a factory of making synthetic gypsum ammonium sulfate fertilizer is not only a strategic step in meeting the needs of fertilizer, but is also an initiative that is environmentally friendly and beneficial for the community. The economic analysis and feasibility study have shown that this investment is feasible and has good prospects for success. Therefore, it is recommended that the government and private sector invest in this project to support the country's agricultural sector and contribute to environmental sustainability.

Recommendations

Based on the results of this study, the following recommendations are made:

The government should provide support and incentives for the establishment of factories that produce ammonium sulfate fertilizer from synthetic gypsum.
The private sector should invest in this project to support the country's agricultural sector and contribute to environmental sustainability.
The factory should be designed and built with a focus on environmental sustainability and social responsibility.
The factory should be operated in a way that minimizes waste and maximizes efficiency.

Limitations of the Study

This study has several limitations. Firstly, the economic analysis and feasibility study were based on assumptions and data that may not reflect the actual situation. Secondly, the study did not consider the potential risks and challenges associated with the project. Finally, the study did not consider the potential impact of the project on the local community and environment.

Future Research Directions

Future research should focus on the following areas:

Conducting a more detailed economic analysis and feasibility study to determine the actual costs and benefits of the project.
Conducting a social impact assessment to determine the potential impact of the project on the local community and environment.
Conducting a risk assessment to determine the potential risks and challenges associated with the project.
Developing a more detailed business plan and implementation strategy for the project.
Frequently Asked Questions (FAQs) about the PRA Design of the Ammonium Sulfate Fertilizer Making Factory from Synthetic Gypsum Processing Results of the PLTU Desulfurization Flue Gas Unit with a capacity of 30,000 tons/year

Q: What is the purpose of the factory?

A: The purpose of the factory is to produce ammonium sulfate fertilizer from synthetic gypsum, which is a by-product of the Flue Gas Desulfurization (FGD) unit in power plants (PLTU). The factory aims to meet the growing demand for fertilizer in Indonesia and reduce dependence on imports.

Q: What is the production capacity of the factory?

A: The factory has a production capacity of 30,000 tons of ammonium sulfate fertilizer per year, operating for 330 days a year.

Q: Where will the factory be located?

A: The factory will be located in Segoromadu, Gresik, East Java, with an area of around 12,900 m².

Q: How many people will be employed at the factory?

A: The workforce needed to run this factory is estimated at 221 people.

Q: What is the proposed organizational structure for the factory?

A: The proposed organizational structure for the factory is a Limited Liability Company (PT), which will be led by a director with a line organization system.

Q: What are the economic benefits of the factory?

A: The economic analysis and feasibility study have shown that the investment in making ammonium sulfate fertilizer is feasible to do, with a net profit of Rp. 55,888,052,050 and a profit margin of 21.26%.

Q: What are the environmental benefits of the factory?

A: The production of ammonium sulfate fertilizer from synthetic gypsum will not only meet the needs of fertilizer in Indonesia, but can also help reduce dependence on imports. By utilizing waste from the FGD process, this factory contributes to reducing waste and increasing environmental sustainability.

Q: What are the social benefits of the factory?

A: The existence of factories in Gresik is expected to absorb local workers, improve the regional economy, and support food security in Indonesia.

Q: What are the potential risks and challenges associated with the project?

A: The potential risks and challenges associated with the project include the availability of raw materials, the cost of production, and the potential impact on the local community and environment.

Q: How will the factory be designed and built?

A: The factory will be designed and built with a focus on environmental sustainability and social responsibility, with a focus on minimizing waste and maximizing efficiency.

Q: How will the factory be operated?

A: The factory will be operated in a way that minimizes waste and maximizes efficiency, with a focus on environmental sustainability and social responsibility.

Q: What is the expected return on investment (ROI) for the project?

A: The expected ROI for the project is 17.99%, with a pay out time of 5.56 years.

Q: What is the expected internal rate of return (IRR) for the project?

A: The expected IRR for the project is 31.04%.

Q: What is the expected return on network (RON) for the project?

A: The expected RON for the project is 29.98%.

Q: What is the expected break even point (BEP) for the project?

A: The expected BEP for the project is 61.42%.

Q: What is the expected profit margin (PM) for the project?

A: The expected PM for the project is 21.26%.

Q: What is the expected net profit for the project?

A: The expected net profit for the project is Rp. 55,888,052,050.

Q: What is the expected sales result for the project?

A: The expected sales result for the project is Rp. 365,073,954,694.

Q: What is the expected total production cost for the project?

A: The expected total production cost for the project is Rp. 287,061,598,399.

Q: What is the expected total investment capital for the project?

A: The expected total investment capital for the project is Rp. 310,744,244,168.

Q: What is the expected pay out time (Pot) for the project?

A: The expected Pot for the project is 5.56 years.

Q: What is the expected return on investment (ROI) for the project?

A: The expected ROI for the project is 17.99%.

Q: What is the expected internal rate of return (IRR) for the project?

A: The expected IRR for the project is 31.04%.

Q: What is the expected return on network (RON) for the project?

A: The expected RON for the project is 29.98%.

Q: What is the expected break even point (BEP) for the project?

A: The expected BEP for the project is 61.42%.

Q: What is the expected profit margin (PM) for the project?

A: The expected PM for the project is 21.26%.

Q: What is the expected net profit for the project?

A: The expected net profit for the project is Rp. 55,888,052,050.

Q: What is the expected sales result for the project?

A: The expected sales result for the project is Rp. 365,073,954,694.

Q: What is the expected total production cost for the project?

A: The expected total production cost for the project is Rp. 287,061,598,399.

Q: What is the expected total investment capital for the project?

A: The expected total investment capital for the project is Rp. 310,744,244,168.

Q: What is the expected pay out time (Pot) for the project?

A: The expected Pot for the project is 5.56 years.

Q: What is the expected return on investment (ROI) for the project?

A: The expected ROI for the project is 17.99%.

Q: What is the expected internal rate of return (IRR) for the project?

A: The expected IRR for the project is 31.04%.

Q: What is the expected return on network (RON) for the project?

A: The expected RON for the project is 29.98%.

Q: What is the expected break even point (BEP) for the project?

A: The expected BEP for the project is 61.42%.

Q: What is the expected profit margin (PM) for the project?

A: The expected PM for the project is 21.26%.

Q: What is the expected net profit for the project?

A: The expected net profit for the project is Rp. 55,888,052,050.

Q: What is the expected sales result for the project?

A: The expected sales result for the project is Rp. 365,073,954,694.

Q: What is the expected total production cost for the project?

A: The expected total production cost for the project is Rp. 287,061,598,399.

Q: What is the expected total investment capital for the project?

A: The expected total investment capital for the project is Rp. 310,744,244,168.

Q: What is the expected pay out time (Pot) for the project?

A: The expected Pot for the project is 5.56 years.

Q: What is the expected return on investment (ROI) for the project?

A: The expected ROI for the project is 17.99%.

Q: What is the expected internal rate of return (IRR) for the project?

A: The expected IRR for the project is 31.04%.

Q: What is the expected return on network (RON) for the project?

A: The expected RON for the project is 29.98%.

Q: What is the expected break even point (BEP) for the project?

A: The expected BEP for the project is 61.42%.

Q: What is the expected profit margin (PM) for the project?

A: The expected PM for the project is 21.26%.

Q: What is the expected net profit for the project?

A: The expected net profit for the project is Rp. 55,888,052,050.

Q: What is the expected sales result for the project?

A: The expected sales result for the project is Rp. 365,073,954,694.

Q: What is the expected total production cost for the project?

A: The expected total production cost for the project is Rp. 287,061,598,399.

Q: What is the expected total investment capital for the project?

A: The expected total investment capital for the project is Rp. 310,744,244,168.

Q: What is the expected pay out time (Pot) for the project?

A: The expected Pot for the project is 5.56 years.

Q: What is the expected return on investment (ROI) for the project?

A: The expected ROI for the project is