Finding Out More About What Are The Advantages Of Implementing DME Over LPG From An Observer's Eyes

Illustration. (Photo: Doc. Antara)

JAKARTA - President Joko Widodo has inaugurated the construction of a coal gasification plant into dimethyl ether (DME) to replace liquified petroleum gas (LPG) as fuel. What are the advantages of DME over LPG?

Tarumanegara University Natural Resources Law expert, Ahmad Redi said, one of the benefits that will be obtained by Indonesia is reducing dependence on LPG imports by utilizing domestic coal.

It is noted that LPG imports in Indonesia reached Rp. 80 trillion and is still subsidized by the State Budget (APBN) of Rp. 6 to Rp. 7 trillion per year.

"The profit we get is that we are no longer just dependent on imports of LPG, but we can already take advantage of existing resources," said Ahmad to VOI, Wednesday, January 26.

In addition, there will be added value from this coal downstreaming, namely the growth of the domestic DME industry, the fulfillment of energy needs for domestic households, additional state revenues and high employment absorption. The downstream project is estimated to generate 12 to 13 thousand new jobs in terms of construction.

"If the government is highly committed, this transformation can take place quickly, considering that this DME effort was carried out a year ago through PT Bukit Asam and has also been tested in hundreds of households in South Sumatra," he continued.

Meanwhile, the Secretary General of the Association of Indonesian Coal and Energy Suppliers, alias Aspebindo Muhammad Arif, said that the existence of this DME will maximize the use of coal because it will utilize low-calorie coal.

"For coal exports, usually countries such as India, Vietnam and China only ask for medium calories, so for low-calorie coal it becomes a challenge because it is not absorbed in the market," he said.

The DME project, which was inaugurated by its groundbreaking ceremony, is a project worth Rp. 33 trillion which was jointly carried out by PT Bukit Asam Tbk (PTBA), PT Pertamina (Persero) and Air Products & Chemicals Inc (APCI), a petrochemical company from the United States.

The DME project in Tanjung Enim is planned to operate for 20 years. With the utilization of 6 million tons of coal per year, this project can generate 1.4 million DME per year to reduce LPG imports by 1 million tons per year, so as to improve the trade balance.