Bukit Asam Commits to Implement Downstream Coal into DME to Reduce LPG Import

Bukit Asam Commits to Implement Downstream Coal into DME to Reduce LPG Import

January 25, 2022

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Bukit Asam Commits to Implement Downstream Coal into DME to Reduce LPG Import PT Bukit Asam Tbk is fully committed to the development and implementation of the coal downstream project into dymethyl ether (DME). In collaboration with PT Pertamina (Persero) and Air Products and Chemicals, Inc., the project is considered in line with the government's efforts to reduce dependence on imports of liquid petroleum gas (LPG).

One of the commitments was marked by the groundbreaking of the coal downstream project into DME in the Tanjung Enim Industrial Estate, Muara Enim, South Sumatra, Monday (January 24, 2022). Attended by the President of the Republic of Indonesia Joko Widodo, the project which was designated as a national strategic project through Presidential Decree 109 of 2020 was officially started.

President Director of Bukit Asam, Arsal Ismail, said that the groundbreaking was a historic moment in the development of project collaboration.

“We hope that this event will show Bukit Asam's commitment and readiness. We also hope for the support of the President and related ministries and institutions so that the downstream project will run well," said Arsal Ismail.

Arsal added that the downstream coal project into DME is in line with Bukit Asam's transformation and focus on developing the downstream industry to provide optimal added value for coal. Through this project, low-calorie coal will be converted into syngas and processed into methanol to produce DME as an alternative to LPG.

The project will be carried out in Tanjung Enim for 20 years with a total investment of USD 2.1 billion or equivalent to Rp30 trillion. With the utilization of 6 million tons of coal per year, this project can produce 1.4 million tons of DME per year.

The Minister of Investment/Head of the Investment Coordinating Board Bahlil Lahadalia, Minister of Energy and Mineral Resources Arifin Tasrif, Minister of State-Owned Enterprises Erick Thohir, Head of the Financial and Development Supervisory Agency Muhammad Yusuf Ateh, Chairman of the Board of Commissioners of the Wimboh Financial Services Authority. Santoso, and Cabinet Secretary Pramono Anung also attended the event.
The Governor of South Sumatra, Herman Deru, Acting Muara Enim Regent Nasrun Umar, Pertamina President Director Nicke Widyawati, and Air Products Indonesia Local Partner CEO Duddy Christian were also present.