Following President's Directive, Bahlil States Ministry of Energy is Studying Low-Calorie Coal for Fuel Production

The Ministry of Energy and Mineral Resources (ESDM) is studying the utilisation of low-calorie coal as an alternative raw material to produce fuel. This study is a follow-up to the directive from President Prabowo Subianto to optimise all available domestic energy potential amidst uncertain global geopolitical conditions.

The Minister of Energy and Mineral Resources, Bahlil Lahadalia, stated that coal processing technology has advanced significantly, allowing low-calorie coal to produce both gas and oil. The government views the utilisation of this energy source as part of an effort to strengthen national energy security.

“What President Prabowo conveyed regarding the production of gas or oil through coal stems from the thought that, in uncertain geopolitical conditions, the President’s instruction to us is to optimise all existing energy potential in Indonesia,” Bahlil said in Jakarta on Monday (21/09/2026).

He explained that Indonesia possesses vast potential in low-calorie coal. According to him, coal processing technology is already being used in several countries to produce alternative energy sources.

“The technology is now sophisticated enough that low-calorie coal can produce both gas and oil. However, we will continue to follow up on what President Prabowo has communicated,” said Bahlil.

The Minister of Energy cited China as an example of a country that has utilised low-calorie coal to produce gas. Furthermore, several companies have already offered cooperation to the government to develop this coal processing technology.