BKPM Records USD2.3 Billion Investment in Coal Downstreaming
The Ministry of Investment and Downstream Industry/Investment Coordinating Board (BKPM) has recorded investment of USD2.3 billion for a coal-to-methanol downstream project.
Rizwan Aryadi Ramadhan, Director of Mineral and Coal Downstream at BKPM, said the investment is expected to deliver broader economic benefits, both for communities around the project area and for the national economy.
“We also express our deepest appreciation for the USD2.3 billion investment that will be realised in this project,” Rizwan said at the signing of the Front-End Engineering Design (FEED) contract and the Engineering, Procurement, Construction, and Commissioning (EPCC) Framework Agreement in Jakarta, quoted from Antara, Wednesday, 29 July 2026.
Rizwan expressed hope that the project’s investment value would continue to increase as implementation progresses, so that it can generate greater economic benefits.
Beyond encouraging investment realisation, BKPM has also asked the project developers to ensure the sustainability of the downstream industry’s development. According to Rizwan, the project is expected to strengthen national technological self-reliance while creating added value through the transfer of knowledge.
“We are also encouraging this project to enhance national technological independence and create knowledge-based added value through the transfer of knowledge,” Rizwan said.
He viewed the coal gasification-to-methanol project as a form of collaboration among various parties to support the national interest, particularly in reducing dependence on methanol imports.
“Together we are building resource sovereignty, opening up employment for thousands of our fellow citizens, and most importantly, improving the welfare of communities around the project,” he said.
PT Bumi Etam Chemical (BEC) signed the Front-End Engineering Design (FEED) contract and the Engineering, Procurement, Construction, and Commissioning (EPCC) Framework Agreement for the development of the coal-to-methanol gasification National Strategic Project (PSN) in East Kutai, East Kalimantan.
The agreement marks the start of the basic engineering (FEED) phase as well as the preparation of the EPCC implementation framework, laying the foundation for the construction phase of the coal-based methanol production facility.
The coal gasification project is targeted to produce two million tonnes of methanol per year, using approximately 7.78 million metric tonnes of low-calorie coal annually as feedstock.
The project’s development is expected to support the natural resource downstream programme, reduce dependence on methanol imports, and increase the domestic added value of coal commodities.