PT Bukit Asam Tbk (PTBA) declared the coal downstream industry at Bukit Asam Coal Based Special Economic Zone (BACBSEZ), Tanjung Enim, Sunday (3/3). PTBA President Director Arviyan Arifin, BUMN Minister Rini M Soemarno, ESDM Minister Ignasius Jonan, and Industry Minister Airlangga Hartarto, pressed the button that marked the declaration. This declaration was a continuation of the Coal Downstreaming Head of Agreement, signed by PTBA, Pertamina, Pupuk Indonesia, and Chandra Asri Petrochemicals on December 8, 2017 in Jakarta.
Through gasification technology, low-calorie coal will be converted into high-value end products. This technology converts “young” coal into syngas, then into Dimethyl Ether (DME) as LPG substitute, urea as fertilizer, and polypropylene as plastic raw material.
"We want to create added value by going downstream, transforming coal with gasification technology, creating end products that have higher selling value opportunities, rather than just plain coal products. We expect this to bring more profit for the company," explained Arviyan Arifin.
In the Bukit Asam Coal Based Special Economic Zone (BACBSEZ) area, four factory complexes will be built to support the downstream project, including the coal to syngas plant complex, syngas to urea plant complex, syngas to DME plant complex, and syngas to polypropylene plant complex. The plants were scheduled to start operating in November 2022 and expected to be able to meet the market needs of 500 thousand tons of urea per year, 400 thousand tons of DME per year, and 450 thousand tons of polypropylene per year.
BUMN Minister Rini Soemarno welcomed this collaboration and hoped that the downstreaming would be realized soon. According to her, Indonesia must continue to develop the coal downstreaming industry, not only to reduce imports but also to expand exports. "Downstreaming is also important in an effort to reduce pollution of coal; by producing clean energy in Syngas form, the upstream material of various products such as DME, diesel and aviation fuel," Rini said.
The collaboration of Bukit Asam with Pertamina, Pupuk Indonesia and Chandra Asri Petrochemical is the implementation of PP no. 1 of 2017 concerning Downstreaming of Mineral and Coal, and Minister of Energy and Mineral Resources Decree no. 2183 K / 30 / MEM 2017 concerning Determining Needs and Minimum Presentation of Coal Sales for Domestic Market.
This collaboration would create added value to coal, so that not only sold as end product, but also as raw material. In addition, it is hoped that this collaboration can increase the synergy between SOEs, and can create efficiency in the coal, gas, fertilizer and chemical industries.
