Bahlil Reveals Challenges in Coal-to-DME Project

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has revealed several challenges in realising the coal downstreaming project into Dimethyl Ether (DME), developed by PT Bukit Asam Tbk (PTBA) in Tanjung Enim, Muara Enim, South Sumatra.

Initially, Bahlil stated that one of the main motivations for developing DME is Indonesia’s high dependence on Liquefied Petroleum Gas (LPG) imports.

He explained that the difference in gas types is the primary reason why Indonesia still has to import LPG, despite having large natural gas reserves.

“I was given a quick briefing by Mr Hilmi and his team when we were about to inaugurate their block of 25,000 barrels at that time. I asked why we import LPG when we have plenty of gas? He explained that C3, C4 are different from most of our gas, which is C1, C2. C3, C4 are small, that’s why we are building domestic industry which is small,” said Bahlil at the Sinergi Alumni IPB Untuk Bangsa event on Saturday (2/4/2026).

In response, the government is promoting the development of DME produced from low-calorie coal downstreaming. This product is designed as a substitute for LPG, particularly for household needs.

Despite its significant benefits, Bahlil acknowledged that the DME project has not been an easy journey. He mentioned that many parties had opposed or hindered the project’s realisation.

Bahlil said the project had actually already had its groundbreaking during the administration of President Joko Widodo when he was still serving as Minister of Investment. However, the project was halted midway.

“At that time, I wasn’t yet the party chairman, so it could still be intercepted. I’m not the party chairman yet, but now don’t even try to intercept it. I tell you, as people from Maluku say, ‘adek pele putus melintang patah’. Ah, that’s it,” Bahlil stated.