Coal-to-Gas Project Begins Construction, Pertamina to Be the Buyer

PT Pertamina (Persero) has expressed its readiness to act as the offtaker, or buyer, of Dimethyl Ether (DME) products resulting from coal downstreaming. This DME gas serves as an alternative energy source to replace Liquefied Petroleum Gas (LPG), which is currently mostly imported. Pertamina conveyed this commitment following the official groundbreaking of the Phase 2 Danantara Downstreaming Project by President Prabowo Subianto today, Wednesday (29/4/2026). The inauguration of the groundbreaking for 13 downstream projects by President Prabowo Subianto took place in Cilacap, Central Java, on Wednesday (29/4/2026). Besides Cilacap, the inaugurations were also held simultaneously at several locations, including Tanjung Enim, South Sumatra. Among the 13 projects whose construction was officially started, one is the coal-to-DME downstreaming project in Tanjung Enim, South Sumatra. Pertamina’s Director of Strategy, Portfolio, and Business Development, Emma Sri Martini, stated that her company is prepared to absorb the DME products produced from the project. The project was initiated by BPI Danantara and is being implemented by MIND ID together with PT Bukit Asam Tbk (PTBA), Pertamina, and other strategic partners. “Hopefully, this time we will roll out this project together with PTBA, MIND ID, and Insya Allah, Pertamina is ready to offtake the DME product. Bismillah, hopefully it goes smoothly,” she said during the groundbreaking event for the Phase 2 Coal-to-Dimethyl Ether (DME) Downstreaming Project in Tanjung Enim, South Sumatra, on Wednesday (29/4/2026). Emma assessed that the coal-to-DME project is highly important, especially amid the current global geopolitical situation that has intensified competition for crude oil, fuels, and LPG. She cited examples of several countries experiencing queues for fuels and LPG due to supply limitations. According to her, although Indonesia is still a net importer of LPG, Pertamina continues to strive to maintain supply availability. “Alhamdulillah, Indonesia has so far been able to maintain the availability of fuels and LPG. Alhamdulillah, we request your support, ladies and gentlemen; we are all fighting, all of us at Pertamina are fighting. It’s not easy, ladies and gentlemen; we know very well that Indonesia is still a net importer and we have not yet achieved energy self-sufficiency, especially for LPG,” said Emma. Furthermore, Emma revealed that the national LPG demand, particularly for subsidised LPG, continues to increase year by year and now reaches around 8.2 million metric tons per year. Of that amount, approximately 7 million metric tons still must be met through imports, while domestic supply capacity is only around 12-15% of total needs. “So this Coal-to-DME project is very important; it is hoped that it can serve as a substitute for LPG imports. In addition to increasing foreign exchange, the multiplier effect is also very clear; it can optimise domestic resources,” she emphasised.