DME Project Cooperation Agreed, Minister of Energy and Mineral Resources: This is One of Indonesia’s Coal Downstream Milestones

The cooperation agreement for the National Strategic Project (PSN) for gasification of coal into dimethyl ether (DME) was officially agreed and its commitment was confirmed on Thursday (10/12) night. The collaboration involves PT Pertamina (Persero), PT Bukit Asam, Tbk and Air Products and Chemicals Inc.

In his remarks, Minister of Energy and Mineral Resources Arifin Tasrif said that the development of this DME can substitute LPG for household users so that it can reduce LPG imports which currently reach more than 70%.

“This is one of the national coal downstream milestones, especially in the development of DME. In the future, it is hoped that the technology used is efficient and produces DME products that are competitive with LPG,” said Arifin.

He hopes that this cooperation can run smoothly and according to plan. “I hope that the cooperation in developing this DME will run smoothly, sustainably and in a timely manner in its implementation,” said Arifin.

The cooperation agreement was made by the President Director of PT Bukit Asam Tbk (PTBA) Arviyan Arifin, President Director of PT Pertamina (Persero) Nicke Widyawati, and CEO of Air Products and Chemical Inc. Seifi Ghasemi, witnessed by the Minister of Energy and Mineral Resources Arifin Tasrif.

The agreement includes a principle agreement that will be determined and valid for all parties (PTBA, Pertamina, and Air Products).

“This cooperation is in line with the government’s strategy to take advantage of coal surpluses with sufficient reserves for the next 60 years, as well as to help reduce the trade balance deficit. For Pertamina, with its current downstream infrastructure and not many technical modifications, we are optimistic that this conversion program. will be successful, “said Nicke.

Likewise, as conveyed by the CEO of PTBA Arviyan Arifin. According to him, since the agreement was signed in 2018, the three parties have followed up with a number of discussions and studies so that they can reach an agreement at this time.

“Hopefully this can be a good start for energy security and can encourage other companies to do the same in supporting the government’s strategy,” said Arviyan.

The same optimism came from the CEO of Air Product Inc. Seifi Ghasemi. “We are proud to carry out this agreement to build a coal conversion facility to DME. We believe that in the future Indonesia will become a great country and we are ready to cooperate and invest in Indonesia,” he said.

The coal gasification project is a coal processing program into dimethyl ether (DME) to be used as an alternative to LPG. This project was developed and implemented jointly by PT Bukit Asam Tbk (PTBA), PT Pertamina (Persero), and Air Products and Chemicals Inc as investors with an investment value of around USD 2.1 billion.

Through Presidential Regulation (Perpres) No. 109/2020 signed by President Joko Widodo on November 17, 2020, the coal gasification plant located in Tanjung Enim, South Sumatra is now designated as a National Strategic Project (PSN). (KO)