The Ministry of Energy and Mineral Resources (ESDM) is accelerating energy downstream projects, focusing on developing coal-to-dimethyl ether (DME) as a substitute for liquefied petroleum gas (LPG). Currently, Indonesia's LPG demand remains highly dependent on imports, increasing by approximately 1.2 million tons annually, with demand expected to reach 10 million tons by 2026.
President Prabowo recently held a limited meeting at the Merdeka Palace, demanding the acceleration of 18 downstream projects worth over IDR 600 trillion, targeting operations by 2026. These projects cover fisheries, agriculture, and energy and mineral sectors, aiming to boost economic growth, create jobs, and substitute imported products.
The CEO of investment management agency Danantara stated that they are comprehensively assessing project feasibility, focusing on technical capabilities and project history (the cooperation with US-based Air Products & Chemicals Inc. was previously suspended in 2022). Danantara can make direct investments, but the specific amount has not been disclosed.
The government plans to reduce dependence on imported LPG through DME production while promoting the development of the domestic energy industry. Previously, in January 2022, former President Jokowi laid the foundation for a coal-to-DME project in South Sumatra, but after the US investor withdrew, the government is negotiating cooperation with new partners, including China.
The Ministry of Energy and Mineral Resources (ESDM) is accelerating energy downstream projects, focusing on developing coal-to-dimethyl ether (DME) as a substitute for liquefied petroleum gas (LPG). Currently, Indonesia's LPG demand remains highly dependent on imports, increasing by approximately 1.2 million tons annually, with demand expected to reach 10 million tons by 2026.
President Prabowo recently held a limited meeting at the Merdeka Palace, demanding the acceleration of 18 downstream projects worth over IDR 600 trillion, targeting operations by 2026. These projects cover fisheries, agriculture, and energy and mineral sectors, aiming to boost economic growth, create jobs, and substitute imported products.
The CEO of investment management agency Danantara stated that they are comprehensively assessing project feasibility, focusing on technical capabilities and project history (the cooperation with US-based Air Products & Chemicals Inc. was previously suspended in 2022). Danantara can make direct investments, but the specific amount has not been disclosed.
The government plans to reduce dependence on imported LPG through DME production while promoting the development of the domestic energy industry. Previously, in January 2022, former President Jokowi laid the foundation for a coal-to-DME project in South Sumatra, but after the US investor withdrew, the government is negotiating cooperation with new partners, including China.