Coal Downstreaming for Food Security: Indonesia Prepares 10,000 Tonnes/Year Factory

PT Bukit Asam Tbk (PTBA) is preparing to build a factory for processing coal into potassium humate with a capacity of 10,000 tonnes per year. This forms part of the company’s downstreaming strategy to support the national food security programme through the provision of soil conditioners.

PTBA’s President Director Arsal Ismail explained that the project is the result of research collaboration with Universitas Pembangunan Nasional (UPN) Veteran Yogyakarta. He stated that the product can improve soil fertility while adding value to the coal commodity.

“This product functions as a soil conditioner that can enhance soil fertility. This product undoubtedly provides very significant added value, up to 29 times compared to raw coal,” he said during a Hearing with Commission XII of the House of Representatives (DPR RI) in Jakarta, quoted on Wednesday (15/4/2026).

The potassium humate produced by PTBA is targeted to become a solution for the agricultural sector in improving land quality in various regions. The project also aligns with the government’s Asta Cita agenda in strengthening national food and energy self-sufficiency.

“Through this downstreaming, we are committed to supporting the implementation of the government’s Asta Cita, particularly in strengthening national energy and food resilience,” he added.

The expansion of PTBA’s business scope marks a shift in the company’s focus from merely being an energy producer to providing high-value industrial raw materials. In addition to the food sector, PTBA has also prepared a coal industry tree to be developed into various other strategic chemical products.

“Coal is not only used as fuel, but can also be processed into various high-value chemical and energy products. As a strategic industrial raw material, it is hoped that it will eventually provide sustainable added value to the national economy,” he emphasised.