Deputy Minister Of Investment Calls Danantara Financing DME To Reduce LPG Imports

Illustration. (Photo: Doc. Antara)

JAKARTA - Deputy Minister of Investment and Downstreaming Todotua Pasaribu said that the Investment Management Agency (BPI) Daya Anagata Nusantara (Danantara) will finance the dimethyl ether (DME) project to reduce LPG imports.

Through Danantara, of course this government also has thoughts on coal to become a DME product. This product is a replacement product for LPG, which is widely used or consumed by our people," said Todotua in the Mining Forum with the theme, Mining Industry in the Middle of Economic Growth Target 8 percent and Gejolak Dunia', quoted by Antara, Wednesday, March 19.

Every year, he continued, Indonesia imports LPG with a fairly large number.

Based on data from the Ministry of Energy and Mineral Resources presented by the Director-General of Mineral and Coal Tri Winarno in the same forum, Indonesia imports around 7 8 million tons of LPG per year. The data shows Indonesia's high dependence on LPG imports.

On the one hand, Indonesia has coal reserves that can be changed to become DMEs to replace LPG.

"If we can carry out this program (DME) then we can reduce LPG imports in the future," said Todotua.

Previously, the DME project had experienced problems because foreign investors, such as Air Products from the United States and other investors from China, withdrew from cooperation. However, this time the government ensured that the project would run without dependence on foreign capital.

DME is an alternative fuel based on low-calorie coal designed as a substitute for LPG fuel imports.

The DME project will be developed in several locations, including South Sumatra, East Kalimantan and South Kalimantan.

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia stated that the Dimethyl Ether (DME) downstream project in Indonesia this time no longer depends on foreign investors.

Bahlil, at the Jakarta Presidential Palace Complex, Monday, March 3, said that the government through President Prabowo Subianto's policy would finance this project with domestic resources, both through the national and private budgets.

Based on data from the Ministry of Energy and Mineral Resources (ESDM), investment for this DME project is estimated at 11 billion US dollars. The funds will be used to build coal processing infrastructure into DME.