Boosting Coal Downstreaming, PTBA to Develop DME-Synthetic Gas Project

PT Bukit Asam Tbk (PTBA) has reaffirmed its commitment to developing coal downstreaming as part of its transformation towards becoming a world-class energy company. PTBA’s President Director Arsal Ismail stated that by 2030, the company aims to initiate the commercialisation of coal downstreaming to strengthen national energy resilience. At least, PTBA will focus on three main sectors, namely coal downstreaming, strengthening coal infrastructure and logistics, and developing the power generation business, both based on coal-fired power plants and New Renewable Energy (NRE). “These three directions of company development are our commitment to supporting the government’s eight aspirations for national energy independence,” Arsal explained during a Hearing with Commission VI of the House of Representatives on Tuesday (31/3/2026). Furthermore, he said one of the strategic projects being developed is the downstreaming of coal into dimethyl ether (DME). This project is aimed at reducing Indonesia’s dependence on LPG imports. In this project, PTBA will process around 6.9 million tonnes of low-calorie coal per year to produce approximately 1 million tonnes of DME. “In this scheme, PTBA will act as the factory operator as well as the coal supplier, and will collaborate with Pertamina, which will be the offtaker of the DME we produce,” he said. In addition to DME, PTBA is also developing a coal-to-synthetic natural gas (SNG) project as an alternative gas supply, particularly for South Sumatra and western Java. In that project, PTBA will utilise around 9 million tonnes of low-calorie coal per year with a production capacity of up to 240 MMSCFD syngas. In the development scheme, PTBA will form a joint venture with PT Perusahaan Gas Negara Tbk (PGN), which will also be the 100% offtaker of the SNG produced. “We have already signed a head of agreement between PTBA and PGN for the development of the coal-to-synthetic natural gas project, which will be followed by the implementation of a joint feasibility study with a consultant,” he stated.