The Minister of Energy and Mineral Resources recently announced that the coal-to-dimethyl ether (DME) project will be launched in 2026, aiming to reduce liquefied petroleum gas (LPG) imports. Currently, Indonesia's annual LPG consumption is 8.5 million tons, domestic production is only 1.3 million tons, and annual imports reach 6.5–7 million tons.
DME is a colorless gas that can replace LPG and diesel, used in aerosol propellants and the chemical industry. The project was proposed during the previous President Joko Widodo's era but only signed a memorandum of understanding due to the huge investment. Technology options come from China or Europe, and the final decision will be based on efficiency.
State-owned enterprise PT Bukit Asam (PTBA) will lead the project. Previously stalled after the withdrawal of US-based Air Products & Chemical, PTBA is now in talks with Chinese partners. The project utilizes low-calorie coal resources, with costs far lower than LPG, achieving an import substitution strategy through coal gasification technology.
The Minister of Energy and Mineral Resources recently announced that the coal-to-dimethyl ether (DME) project will be launched in 2026, aiming to reduce liquefied petroleum gas (LPG) imports. Currently, Indonesia's annual LPG consumption is 8.5 million tons, domestic production is only 1.3 million tons, and annual imports reach 6.5–7 million tons.
DME is a colorless gas that can replace LPG and diesel, used in aerosol propellants and the chemical industry. The project was proposed during the previous President Joko Widodo's era but only signed a memorandum of understanding due to the huge investment. Technology options come from China or Europe, and the final decision will be based on efficiency.
State-owned enterprise PT Bukit Asam (PTBA) will lead the project. Previously stalled after the withdrawal of US-based Air Products & Chemical, PTBA is now in talks with Chinese partners. The project utilizes low-calorie coal resources, with costs far lower than LPG, achieving an import substitution strategy through coal gasification technology.