Foreign Investors Are Not Interested In Working On Indonesia's DME Project

JAKARTA - The government admits that no foreign investors are interested in investing in the coal downstream project into dimethyl ether (DME) in Indonesia.

Previously, petrochemical companies from the United States (US), Air Products and Chemicals withdrew from the DME project.

Deputy for Investment Promotion at the Ministry of Investment and Downstreaming/BKPM, Nurul Ichwan, revealed that no foreign investor has stated an official commitment to enter the project.

"For DME, we have not heard of which very clear companies will enter Indonesia," said Nurul when met in the South Jakarta area, Tuesday, October 7.

According to Nurul, Indonesia has an interest in the DME project because of the abundance of coal reserves in the country. Nurul said, by converting coal into gas, some of the energy import needs could reduce.

For your information, DME is a project that is predicted as an alternative to reduce dependence on LPG imports and encourage national energy independence.

"Indeed, from our side, we have a big interest because we are very rich in coal. Then we are also still importing gas so that later if this DME can happen, then this can substitute, right," he said.

Even so, Nurul said there was no interest from foreign investors to enter this project. He said, the Ministry of Investment only noted that investments that had obtained the Business Identification Number (NIB) were not just initial interest.

"But if we answer that question, we still haven't heard the real interest for this DME. I don't know if we come to another ministry, because for us, we usually register it when they have entered and got the NIB," said Nurul.