In 1972 the government of the Kutai regency recognized Bontang as a district. The major development of Bontang took place after two major companies were founded there in the 1970s, PT Badak Natural Gas Liquefaction and PT Pupuk Kaltim. PT Badak established early in 1974. PT Pupuk Kaltim, a company specializing in the production of ammonia and fertilizer, followed three years later. Since 1978 Bontang experienced rapid regional growth and development. As a positive impact arising from being made Bontang as an industrial area, both by PT Badak NGL and PT Pupuk Kaltim. The two companies were building facilities and infrastructure that were very important for the economic growth of the city, so the central government planned to upgrade the status of Bontang from the sub-district into an administrative city. In 1989 its status changed to administrative city ("kota administratif - "), by government law of PP No. 20 of 1989 and followed up the expansion of the "" region from one sub-district to two sub-districts. Namely District of North Bontang and District of South Bontang District. In 1999, Bontang upgrade status to autonomous independent city ("kotamadya").