JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif revealed the reasons for the departure of Air Products and Chemicals Inc from the coal to dimethyl ether (DME) project with PT Bukit Asam and PT Kaltim Coal.
Arifin said that Air Product reasoned because the investment offered by America was more attractive than in Indonesia.
"They feel that America is more interesting in its business, he (Ari Products) goes there," Arifin told the media quoted Monday, March 20.
Arifin continued, if currently America has subsidies for new and renewable energy, the projects offered will also be more attractive to Air Products.
In addition, America is also encouraging the use of hydrogen as a new renewable energy.
"So there is a project that is more interesting. So they run there for hydrogen. Because they are pushing for that (hydrogen) use," continued Arifin.
Not only that, the reason why Air Product chose to resign was because of the ratification of the Inflation Reduction Act (IRA) or the Inflation Reduction Law which had been attached since August 2022.
"Because there was an IRA Inflation Reduction Act that caused many investors to run there," concluded Arifin.
Meanwhile, PTBA President Director Arsal Ismail said that the release of Air Products from this consortium will certainly not interfere with the sustainability of the project.
Arsal revealed that currently PTBA has prepared a special downstream area that will be converted into a Special Economic Zone for downstreaming so that the decline in Air Product does not interfere with the progress of the project.
"We at PTBA have prepared special economic areas for downstreaming so far we have carried out land acquisition, we have prepared land and permits have been obtained," said Arsal.
For this downstream SEZ, Arsal revealed that his party has prepared a 595 hectare area and has obtained a SEZ permit.
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