Bahlil Lahadalia Asks To Downstream Coal Into DME To Keep Running

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia emphasized that the government continues to support downstream coal into dimetyl ether (DME). Bahlil said this is a must because DME can be a substitute for Liquified Petroleum Gas (LPG) which is still imported.

"We have also encouraged coal downstreaming for DME as a substitute for LPG. Now, we want to encourage again to build DME," said Bahlil, quoted on Saturday, January 11.

Bahlil added, to intensify this program, the government requires the ex-Coal Mining Concession Work Agreement (PKP2B) to carry out downstream projects.

Not only burdening coal into DME, the government also targets downstream coal to become methanol.

"There are already those who have submitted to build methanol as well and even up to gasification," Bahlil added.

Previously, the downstream coal program to DME was worked on by PT Bukit Asam Tbk. (PTBA) by cooperating with an American company, Air Products, which then withdrew from this project.

Recently, PTBA also announced that it had collaborated with Gadjah Mada University (UGM) to run a research and development program or research and development (R&D) of low-calorie coal into humic acid.

The development of coal into humate acid will help meet the needs of fertilizer products, in order to support national food security.