Inaugurating The Groundbreaking Of The Coal Downstream Project In Muara Enim, Jokowi: Expected To Reduce Elpiji Imports By 6-7 Million Tons Per Year

JAKARTA - President Joko Widodo (Jokowi) accompanied by the Minister of Investment/Investment Coordinating Agency Bahlil Lahadalia and Minister of SOEs Erick Thohir inaugurated the Groundbreaking of the Downstream Coal To Dimethyl Ether (DME) Project in Muara Enim, South Sumatra, Monday 24 January.

"By saying Bismillahhirrahmanirrahim, this morning, I declare that the groundbreaking of the downstream BB to DME project has begun," said Jokowi as he pulled the lever of a heavy vehicle to signal the start of the project.

In his remarks, President Jokowi has been waiting 6 years for this project to be implemented immediately considering that LPG consumption in Indonesia is quite large and Indonesia still imports a lot of LPG gas. It was recorded that Indonesia's LPG imports in 2020 reached 7.95 million tons of LPG or Rp. 77.8 trillion.

For this reason, in September 2021, during his visit to Dubai, the President witnessed firsthand the signing of a memorandum of understanding (MoU) between the Minister of Investment/BKPM and the CEO of Air Product. For the initial stage, Air Products and Chemicals Inc. invested US$2.3 billion or equivalent to Rp33 trillion to process low-calorie coal into DME.

President Jokowi hopes that the output from coal gasification can reduce Indonesia's LPG imports, which average around 6 million-7 million tons per year.

Air Product CEO Sheifi Ghasemo said he was committed to continuing to invest in multi-billion dollar projects in Indonesia, one of which was through this project.

"I thank you for the opportunity that allows us to invest and participate in this groundbreaking event and hope that we can bring great benefits," he said.

To note, DME is a substitute gas for LPG which is still imported from abroad.