Energy and Mineral Resources Ministry says four Chinese enterprises are studying coal gasification to dimethyl ether (DME) project to replace liquefied petroleum gas (LPG). Each enterprise's research results differ; some consider the project infeasible in Indonesia, others derive different internal rates of return. The Ministry requires these enterprises to provide calculation examples so that the project study is not just theoretical. Currently, all countries prioritize their own interests; the chairman of the relevant parliamentary committee suggested that the government not rely solely on one country when advancing Indonesia's coal DME project technology. The Minister of Energy once mentioned that the project would adopt technology transfer from the United States and China. Previously, the project was handled by PTBA with investment from APCI of the United States, planning to produce 1.4 million tons of DME annually. However, APCI withdrew in 2023, leaving the project's fate uncertain and it had previously faced widespread criticism for being uneconomical due to the high cost of replacing imported LPG and expensive technology. The Executive Director of the Indonesian Mining Association also expressed similar views.
Energy and Mineral Resources Ministry says four Chinese enterprises are studying coal gasification to dimethyl ether (DME) project to replace liquefied petroleum gas (LPG). Each enterprise's research results differ; some consider the project infeasible in Indonesia, others derive different internal rates of return. The Ministry requires these enterprises to provide calculation examples so that the project study is not just theoretical. Currently, all countries prioritize their own interests; the chairman of the relevant parliamentary committee suggested that the government not rely solely on one country when advancing Indonesia's coal DME project technology. The Minister of Energy once mentioned that the project would adopt technology transfer from the United States and China. Previously, the project was handled by PTBA with investment from APCI of the United States, planning to produce 1.4 million tons of DME annually. However, APCI withdrew in 2023, leaving the project's fate uncertain and it had previously faced widespread criticism for being uneconomical due to the high cost of replacing imported LPG and expensive technology. The Executive Director of the Indonesian Mining Association also expressed similar views.