PT Bukit Asam (PTBA) is developing at least five strategic coal downstream projects, covering the gasification of coal to produce various products, with some projects at different stages. These include plans to gasify coal into DME, which is expected to replace Liquefied Petroleum Gas (LPG), but is currently hindered by economic feasibility and infrastructure compatibility issues. Several potential Chinese partner companies have been approached, with only East China Engineering Technology Co., Ltd. (ECEC) expressing investment interest, proposing a Processing Service Fee (PSF) higher than the 2021 expectation of the Indonesian Ministry of Energy and Mineral Resources. For synthetic graphite, cooperation with the National Research and Innovation Agency (BRIN) is underway, in the basic engineering design and update phase, targeted for completion by the end of 2025. The total investment is approximately IDR 287.39 billion, with plans to build a pilot plant in Tanjung Enim in 2026, a trial plant in 2027-2028, followed by testing, commissioning and maintenance in 2029. The product can be used for electric vehicle battery anodes, accounting for 22% of lithium battery components. The company will collaborate with Gadjah Mada University (UGM) to research humic acid for agricultural applications, which can improve soil quality and fertility, supporting national agricultural productivity. An initial prototype will be made using low-calorie coal from the Peranap coal mine in Riau Province, with a planned capacity to process 60 tons of coal annually, producing 21 tons of humic acid at a cost of IDR 57.4 billion, targeting commissioning in 2025, funded internally.
The company will also cooperate with PT Perusahaan Gas Negara (PGAS), investing USD 3.2 billion (approximately IDR 52.58 trillion), aiming to provide an alternative solution for national natural gas demand and increase the diversity of the national natural gas energy mix. Utilizing 2.93 billion tons of low-calorie coal, consuming 8.4 million tons annually, it can produce 240 billion BTU/day (approximately 1.6 million tons/year). The project will be built in Tanjung Enim through a joint venture model (PTBA, PGAS, and technology partners), with distribution by PGAS through its existing pipeline network. Methanol plays an important role in many industries such as petrochemicals, textiles, and plastics, and can also be used to make biodiesel and further processed into DME. Currently in the feasibility study stage, the project plans to consume 4.7 to 6.3 million tons of coal annually, producing 1.5 million tons of methanol per year, with a capital expenditure of approximately USD 2.3 billion and a return on investment of 14%-15%.