State-owned coal miner PT Bukit Asam (PTBA) has set up a partnership with State-owned gas distributor PT Perusahaan Gas Negara (PGN) in a coal-based energy downstream project, converting coal into substitute natural gas (SNG) or synthetic gas.
PTBA Business Development Director, Rafli Yandra, said the partnership is part of an effort to diversify the use of national coal. The project has been marked by the signing of a memorandum of understanding (MoU) between PTBA and PGN since last year.
"We collaborate with PGN to convert coal into synthetic gas. This is still under review stage. Once it is finished,we will inform you in the next meeting," Rafli told a press conference at Westin Hotel in Jakarta, on Monday, April 14, 2025.
He said further that the initial stages of this project involve discussion and data exchanges between the two parties. Project development will depend on the readiness of each company and will continue after the feasibility study is completed.
"We have a mutual agreement, when we are all ready. One thing is certain that the feasibility study must be completed first," he said.
The project is in line with the national coal downstream program which encourages the transformation of natural resources into high value-added products.
He cited that this gasification project also supports the coal monetization program, which requires large reserves.
If realized, this project is expected to increase national energy security while creating a new market for domestic coal production.
"So if we only rely on sales, we need other things to do and this is in line with the downstream program," he concluded
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