Coal downstreaming into DME can create jobs, says CORE

The Executive Director of the Center of Reform on Economics (CORE) Indonesia, Mohammad Faisal, has stated that the downstreaming of coal into dimethyl ether (DME) can create jobs and reduce energy imports. “I agree with that. So, downstreaming, including coal, which aims not only to create domestic added value but also to generate employment and curb imports, is indeed beneficial when considering all its advantages. Especially since our LPG still depends on foreign sources,” Faisal said when contacted by ANTARA in Jakarta on Friday. According to him, if the downstreaming of coal into DME can be implemented, it could reduce energy imports such as Liquefied Petroleum Gas (LPG). “So, if that can be executed and proven, we could stop importing LPG and also diesel as hoped, that should be good. It is just a matter of proving it,” he said. President Prabowo Subianto has emphasised that increased profits from State-Owned Enterprises (BUMN) will be utilised to accelerate downstreaming programmes and strengthen Indonesia’s position in the global supply chain. President Prabowo said BUMN profits are not only directed at increasing state revenue but also serve as a source of financing for various strategic downstreaming projects. According to Prabowo, the government together with Danantara conducted the groundbreaking of 13 downstreaming projects on 6 February 2026. Subsequently, another 13 downstreaming projects were initiated on 29 April 2026. He mentioned that a number of these projects include processing coal into dimethyl ether (DME), downstreaming copper and gold, processing industrial salt, and building an alumina smelter into aluminium. These various projects, Prabowo said, will impact the economy through the creation of tens of thousands of new jobs. The government has also begun developing several waste-to-energy projects as part of the downstreaming efforts.