CEO of the national sovereign wealth fund BPI Danantara stated that the institution may directly invest in the coal-to-dimethyl ether (DME) project to replace liquefied petroleum gas (LPG) imports. Currently, it is evaluating potential technology partners and investment plans. Data from the Ministry of Energy and Mineral Resources shows that the country's annual LPG consumption is about 8.5 million tons, but domestic production capacity is only 1.3 million tons, with the remaining 7 million tons relying on imports.
Previously, the Minister of Energy and Mineral Resources revealed that European and Korean companies are interested in forming a consortium to invest in this project, and Chinese companies have also expressed interest. State-owned coal mining company PTBA confirmed that its DME project specifications are consistent with the previous cooperation plan with Air Products and Chemicals, Inc. (APCI), with an annual capacity of 1 million tons.
Currently, Danantara is studying incentive measures such as tax reductions, import facilitation of capital goods, and capital expenditure support for the project. The project has entered the final evaluation stage, aiming to reduce dependence on imported LPG and enhance national energy security through coal-to-DME technology.
Indonesian Investment Enterprise Plans to Directly Invest in Coal-to-Dimethyl Ether Project
CEO of the national sovereign wealth fund BPI Danantara stated that the institution may directly invest in the coal-to-dimethyl ether (DME) project to replace liquefied petroleum gas (LPG) imports. Currently, it is evaluating potential technology partners and investment plans. Data from the Ministry of Energy and Mineral Resources shows that the country's annual LPG consumption is about 8.5 million tons, but domestic production capacity is only 1.3 million tons, with the remaining 7 million tons relying on imports. Previously, the Minister of Energy and Mineral Resources revealed that European and Korean companies are interested in forming a consortium to invest in this project, and Chinese companies have also expressed interest. State-owned coal mining company PTBA confirmed
CEO of the national sovereign wealth fund BPI Danantara stated that the institution may directly invest in the coal-to-dimethyl ether (DME) project to replace liquefied petroleum gas (LPG) imports. Currently, it is evaluating potential technology partners and investment plans. Data from the Ministry of Energy and Mineral Resources shows that the country's annual LPG consumption is about 8.5 million tons, but domestic production capacity is only 1.3 million tons, with the remaining 7 million tons relying on imports.
Previously, the Minister of Energy and Mineral Resources revealed that European and Korean companies are interested in forming a consortium to invest in this project, and Chinese companies have also expressed interest. State-owned coal mining company PTBA confirmed that its DME project specifications are consistent with the previous cooperation plan with Air Products and Chemicals, Inc. (APCI), with an annual capacity of 1 million tons.
Currently, Danantara is studying incentive measures such as tax reductions, import facilitation of capital goods, and capital expenditure support for the project. The project has entered the final evaluation stage, aiming to reduce dependence on imported LPG and enhance national energy security through coal-to-DME technology.
Related Reading
Industry Flash
Cheap Chinese Plastics Impact Indonesia's Petrochemical Industry, Association Calls for Protection
2026-09-03
Industry News
Investment Heat in Two Key Industrial Parks in Central Java Continues to Rise
2026-08-31
Industry News