Indonesia’s sovereign wealth fund, Daya Anagata Nusantara (Danantara), is considering direct investment in a coal gasification project that would convert coal into dimethyl ether (DME), a cleaner alternative to liquefied petroleum gas (LPG). 

“Danantara might invest directly, perhaps,” Rosan P. Roeslani, CEO of Danantara, said at the Merdeka Palace in Jakarta on Thursday, November 6, 2025.

Rosan cited that the institution is still conducting evaluations to determine the most efficient investment strategy for the DME project, including assessing potential partners.

“This DME project was attempted before − it even reached the groundbreaking stage but later stalled. Danantara does not want that to happen again,” he said.

The project is part of 18 downstream energy and mineral projects submitted to Danantara for financing consideration.

Previously, U.S.-based gas and chemical company Air Products and Chemicals Inc. withdrew from two domestic coal downstream projects after rising coal prices made them economically unviable.

The company had partnered with PT Bukit Asam (PTBA) and PT Kaltim Prima Coal (KPC) to develop coal gasification facilities. Air Products’ withdrawal was also attributed to a strategic business shift toward hydrogen development in the United States.

The investment required for the DME project is estimated at Rp164 trillion (US$10 billion), with planned construction sites in Bulungan, Kutai Timur, and Kota Baru in Kalimantan, as well as Muara Enim, Penukal Abab Lematang Ilir, and Banyuasin in Sumatra.

According to Rosan, Danantara is still reviewing all 18 energy and mineral downstream projects submitted by the Ministry of Energy and Mineral Resources (ESDM). He emphasized that funding will be prioritized for projects with clear feasibility studies, business models, and proven technologies.

Minister of Energy and Mineral Resources Bahlil Lahadalia confirmed that all 18 projects have undergone pre-feasibility studies, including the DME initiative in Sumatra and Kalimantan.

“By accelerating these 18 projects, which carry a combined investment value of nearly Rp600 trillion, we can stimulate economic growth, create jobs, and produce goods that substitute imports,” Bahlil said at the Merdeka Palace, on Thursday, November 6, 2025.

He also noted that the financing for these projects would rely on state funds and national private investors, marking a shift from earlier DME plans that depended heavily on foreign capital. Under this new scheme, the government aims to ensure that the DME project proceeds without reliance on foreign investors, who may withdraw mid-development.