Having An Investment Value Of IDR 164 Trillion, The Government Wants To Build A Coal Downstream Project To Become A DME

JAKARTA - The government through the Investment Management Agency (BPI) Daya Anagata Nusantara (Dantara) is ready to downstream coal through gasification into dimethyl ether (DME).

The Minister of Energy and Mineral Resources (ESDM) as well as the Head of the National Energy Downstream And Resilience Acceleration Task Force Bahlil Lahadalia officially submitted the Pre-Study Feasibility document to Danantara CEO Rosan Roeslani. In the document, there are 18 projects with 8 of them being downstream in the mineral and coal sectors.

For coal downstreaming, gasification to DME will be carried out in six regions of Indonesia, namely Bulungan, East Kutai, Kota Baru, Muara Enim, Pali, and Banyuasin.

Bahlil said that all of these projects are new projects and do not include the DME projects that have previously been groundbreaking.

"But these are all new projects, because for example the DME project, a few years ago there were several coal mining companies that reviewed the issue of DME," Bahlil told the media crew at the Ministry of Energy and Mineral Resources Building, quoted on Wednesday, July 23.

For information, previously the government had inaugurated the coal gasification project PT Bukit Asam Tbk (PTBA) to DME in 2022, which was targeted for a Commercial Operation Date (COD) in the fourth quarter of 2027. However, until now the project has not been running

"We've also carried out groundbreaking in South Sumatra, at that time I was still the Minister of Investment. We've done the groundbreaking, but it doesn't work. It's still part of the follow-up, it's just that the place isn't necessarily there," continued Bahlil.

Bahlil said that this gasification project has an investment value of IDR 164 trillion and is estimated to absorb 34,800 workers and save LPG imports.

Meanwhile, other mineral and coal downstream projects include:

1. The Smelter Aluminum (Bauksit) Mempawah, West Kalimantan with an investment value of IDR 60 trillion2. The DME (coal) industry in Bulungan, East Kutai, Kota Baru, Muara Enim, Pali, Banyuasin with an investment value of IDR 164 trillion 3.3. The asphalt industry in Buton, Southeast Sulawesi with an investment value of IDR 1.49 trillion.4. Mangan Sulfat industry in Kupang, East Nusa Tenggara (NTT) with an investment value of IDR 3.05 trillion5. Stainless Steel Slab (Nickel) industry in the Indutri Morowali Area, Central Sulawesi with an investment value of IDR 38.4 Trillion6. Cooper Rod, WIre & Tube (copper karaoke) industry in Gesik, East Java with an investment value of IDR 19.2 trillion7. Steel Iron Industry (I Iron Pasir) in Sarmi Regency, Papua with an investment value of IDR 19 trillion8. Chemical Grade Alumina (Bauksit) Industry in Kendawangan, West Kalimantan with an investment value of IDR 17.3 trillion