Building LPG Substitute Plant, PTBA to Absorb 5,380 Workers
PT Bukit Asam Tbk (PTBA) is building a downstream coal facility to produce Dimethyl Ether (DME) in the Tanjung Enim Industrial Area or BACBIE (Bukit Asam Coal Based Industrial Estate) in Tanjung Enim, South Sumatra.
The project, designated as a National Strategic Project (PSN), is projected to absorb 5,380 workers to promote domestic coal industrialisation.
PTBA’s Director of Downstreaming and Product Diversification, Turino Yulianto, explained that the construction, spanning up to 585 hectares, is part of the company’s long-term vision.
He stated that the project will serve as a hub for developing various integrated downstream coal products from upstream to downstream.
“Ladies and gentlemen, this project also brings benefits to the nation, and we estimate around 5,380 workers will be absorbed in this project, with 4,300 in the construction phase and about 1,010 in the operational phase for one factory,” Turino said in his speech at the groundbreaking ceremony for Phase 2 of the Coal-to-Dimethyl Ether (DME) Downstreaming Project in Tanjung Enim, South Sumatra, on Wednesday (29/4/2026).
The company is committed to prioritising the absorption of workers from its operational areas in South Sumatra. This is intended to ensure that the downstream industry provides direct economic impacts on the welfare of communities around the mining site.
“And we from management are serious about ensuring that the majority of the workforce comes from local areas, especially from South Sumatra, Muara Enim, Lahat. We are committed to that,” he added.
The project is initiated by BPI Danantara and executed by the Mining SOE Holding MIND ID together with PT Bukit Asam Tbk (PTBA) and PT Pertamina (Persero).
The factory will process 7 million tonnes of coal into 1.4 million tonnes of DME or equivalent to 1 million tonnes of LPG per year.
This means the coal-to-DME downstream project will contribute to reducing LPG imports by around 1 million tonnes per year. As is known, Indonesia still imports about 1 million tonnes of LPG annually.
This industrial area is supported by energy supply from the Sumsel 8 PLTU with a capacity of 2x660 MW, which is the largest mine-mouth power plant in Southeast Asia.
“So this is our long-term vision to build coal industrialisation in the mining area in Muara Enim,” he said.
The project is coordinated by the Danantara Investment Management Agency to synergise the roles of related business entities.
In addition to DME development, PTBA also plans to initiate projects converting coal into synthetic natural gas (SNG) and liquid fuels at the same location.
“So today is an important milestone in Indonesia’s mining transformation journey because this project will be the first according to the aspirations to carry out industrialisation in coal mining,” he emphasised.