After Air Products Resigns, The Minister Of Energy And Mineral Resources Admits That The DME Project Will Start From The Beginning

JAKARTA - Minister of Energy and Mineral Resources (ESDM) revealed the progress of the coal gasification project into dimethyl ether (DME).

Menut Arifin, usai hengkangnya Air Products and Chemicals Inc proyek hasil konsorsium dengan PT Bukit Asam Tbk ini harus dimulai dari awal.

"So until now there has been no (replacement). It must start from scratch," said Arifin, quoted Monday, August 7.

It is known that the withdrawal of Air Products from this project is because currently America has subsidies for new and renewable energy so that the projects offered are also more attractive to Air Products.

In addition, America is also encouraging the use of hydrogen as a new renewable energy.

Not only that, the reason why Air Product chose to resign was because of the ratification of the Inflation Reduction Act (IRA) or the Inflation Reduction Law which had been attached since August 2022.

"Indeed, DME with Air Products controls DME, this technology is Air Products. But with IRA, they choose massive investment in America, so they have a decline. Currently, there is no (replacement) for Arifin.

Although it must start from scratch, Arifin explained that coal can be used to produce synthetic gas as raw material for the fertilizer industry.

Meanwhile, PTBA President Director Arsal Ismail revealed that his party is currently exploring cooperation with companies from China to replace Air Products.

"There is indeed a company from China and is in the process. It is in the process that we are negotiating," said Arsal, who was met after the PTBA AGMS on Thursday, June 16.

In addition to exploring cooperation with companies from China, Arsal continued, his party continues to coordinate with the government so that this project runs well.

Arsal said that in principle, his party fully supports the downstream policy launched by the government.

Therefore, even though Air Product left the DME project, he ensured that this project would continue.

"If we are from PTBA ourselves, we have prepared internally for the downstream industrial area," continued Arsal.

Arsal also ensured that the available coal reserves amounted to 3 billion tons.

"Indeed, we already have reserves of almost 3 billion tons. It's just a matter of negotiating with the Chinese side, with investors, whoever the investors are, of course we will have a deeper discussion of course," explained Arsal.