Air Product Reportedly Resigns From Consortium, PTBA Ensures DME Projects Keep Running

JAKARTA - One of the consortium companies in the coal gasification project to Dimethyl Ether (DME) Air Products and Chemicals, Inc. reportedly withdrew.

Director of Business Development of PTBA Rafli Yandra said there was a letter of resignation from Air Product but he was reluctant to clarify the resignation of the American company.

"So far we have not clarified but have discussed it with the relevant ministries and are currently in process," he said at a press conference in Jakarta, Thursday, March 9.

Regarding the continuation of the DME project, Rafli said that this project was still running according to the initial plan to maintain the government's mandate in the field of coal downstreaming.

"We continue to continue the coal to DME project as PTBA's step in maintaining the government's mandate in the field of downstream coal. This is in the form of a contribution in supporting national energy. This is what we can convey," he explained.

Present on the same occasion, PTBA President Director Arsal Ismail added that currently PTBA has prepared a special downstream area that will be converted into a Special Economic Zone for downstreaming so that the decline in Air Product does not interfere with the progress of the project.

"We at PTBA have prepared special economic areas for downstreaming so far we have carried out land acquisition, we have prepared land and permits have been obtained," said Arsal.

For this downstream SEZ, Arsal revealed that his party has prepared a 595 hectare area and has obtained a SEZ permit.

"This DOWNstreaming is not only DME but also another derivative of coal to gasification, then it could be methanol, ethanol, or DME or other derivatives," he explained.

For information, Air Products and Chemicals Inc formed a joint consortium with PTBA and also PT Pertamina (Persero) to establish a joint venture that focuses on coal processing and coal derivative products in South Sumatra (Sumsel).