Serious Downstreaming Of Coal, Government Prepares SEZ For DME Projects

Coordinating Minister for Economic Affairs Airlangga Hartarto. (Photo: ANTARA)

Coordinating Minister for Economic Affairs Airlangga Hartarto revealed that the government has provided easy development of coal downstreaming by the construction of a Special Economic Zone (KEK) for the gasification project into dimethyl ether (DME).

Airlangga said, Indonesia has a very large coal reserves.

Based on data from the Geological Agency of the Ministry of Energy and Mineral Resources, Indonesia's coal reserves reached 31.96 billion tons.

In fact, said Airlangga, when he reached net zero emissions, Indonesia could still export coal.

"We have given SEZs to DMEs for several projects. So maybe the DPR and the Ministry of Investment need to be escorted," Airlangga said, written Friday, August 1.

Facilitated by SEZ, Airlangga believes that the DME project can start producing products within 2 to 3 years.

According to him, the government has prepared various facilities if the DME project is carried out in the SEZ.

He gave an example of the convenience provided, including taxation, machining capital expenditure to offtakers that will be provided by the government.

"Offtaker should also be provided by the government, in this case Pertamina," he continued.

Airlangga added that the government is indeed working on this gasification project as an effort to suppress LPG imports and energy subsidies, which currently reach Rp80 trillion.

Sejatinya, proyek DME ini sudah mulai dilakukan oleh PT Bukit Asam bk dengan menggandeng perusahaan Amerika Serikat, Air Products yang kemudian hengkang pada tahun 2023 yang lalu.

"Ini yang harus kita dorong bahwa teknologi di negara lain tersedia dan bagaimana kita mendesign sektor energi agar substitusi dari elpiji segera kita dorong," tandas Airlangga.

In fact, this DME project has already begun to be carried out by PT Bukit Asam bk in collaboration with the United States company, Air Products, which then left in 2023.

"This is what we must encourage that technology in other countries is available and how we design the energy sector so that we immediately encourage substitution from LPG," said Airlangga.