Coal-suffering-badly
The Ministry of Investment and Downstream reveals that the potential downstream of coal could reach US$31.82 billion (Rp552.48 trillion) that will come from three types of products, namely Dimethyl Ether (DME), methanol and coke/semi-coke.
"DME is not the only option in downstreaming. DME itself has been through a long journey, and the challenge is the progress of investors at that time," Deputy Minister of Investment and Downstream, Todotua Pasaribu, said on Tuesday, March 18, 2025.
In addition to the large investment value, coal downstreaming is also projected to be able to absorb 23,160 workers, contribute US$2.26 billion to Gross Domestic Product (GDP), and increase exports to US$11.3 billion.
Todotua cited that DME is a government strategy to reduce dependence on Liquefied Petroleum Gas (LPG) imports, most of which are still subsidized for industrial and public consumption.
"To reduce the import and use of LPG, one of the strategies taken is to find substitution products," he said.
Previously, the government planned to revive the coal gasification project into DME in three locations in Sumatra and Kalimantan. This decision was a direct instruction from President Prabowo Subianto issued on March 3, 2025.
Head of the Task Force for Downstreaming and National Energy Security, Bahlil Lahadalia, said that this project aims to process low-calorie coal so that it can be used as a substitution of imported LPG.
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